Particle.news
Download on the App Store

Apple Shatters Q1 Records on ‘Staggering’ iPhone 17 Demand, Signals Supply and Margin Pressure

Apple warns a market-wide memory crunch could squeeze margins, with double‑digit March‑quarter growth still forecast.

Overview

  • Revenue reached $143.8 billion with EPS of $2.84 and net income of $42.1 billion, as gross margin hit 48.2% for an all-time high quarter.
  • iPhone revenue jumped 23% to $85.27 billion and Services set a record near $30.0 billion, lifting the installed base to about 2.5 billion active devices.
  • Greater China sales rebounded roughly 38% to $25.53 billion, while Wearables missed expectations as AirPods Pro 3 demand exceeded supply.
  • Apple projected March‑quarter revenue growth of 13%–16% year over year and said it is currently supply‑constrained on advanced chips and memory, with margins likely to face pressure.
  • The AI push advanced through a confirmed Google Gemini partnership and a reported Q.ai acquisition valued near $1.6–$2 billion, alongside record R&D spending of $10.89 billion.