Source: Sharecast
Posting first-quarter numbers after the bell on Thursday, Apple said total net sales in the three months to 27 December surged 16% to $143.8bn, well ahead of expectations. The firm had previously guided for sales growth of between 10% and 12%.
Net income was $42.1bn, up from $36.3bn a year previously and also above estimates.
Driving the growth was strong demand for the latest iPhone 17, which launched in September, as well as a rebound in Greater China. Sales in the region soared to $25.5bn from $18.5bn. In the Americas, Apple’s biggest market, sales rose to $58.5bn from $52.6bn.
Tim Cook, chief executive, called it a "remarkable, record-breaking quarter".
He continued: "iPhone had its best-ever quarter, driven by unprecedented demand, with all-time records across every geographic segment. Services also achieved an all-time revenue record, up 14%."
Cook told Reuters that demand for iPhones had been "simply staggering" during the quarter.
Looking ahead to the current period, Apple forecast second-quarter revenues to grow by between 13% and 16%, higher than the 10% rise Wall Street had been expecting.
Shares in Apple initially jumped in extended trading following the results but gains were eventually pared back.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Apple delivered a standout iPhone quarter, but investors came away wanting more - specifically a clearer AI story.
"The outlook for the March quarter was better than analysts had forecast, but not quite enough to shift the overall mood. Apple is still wrestling with parts shortages and rising component costs, which ads some caution to an otherwise upbeat guide.
"What’s really keeping a lid on things is Apple’s slow progress in AI, a gap that now feels pivotal to close."