Apple revenues rocket to $144bn as iPhone 17 dominates China – Tech Digest

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Apple has smashed Wall Street expectations with a massive 16% revenue surge, propelled by record-breaking iPhone sales.

The tech titan reported a staggering $143.8 billion in revenue for the first quarter, far exceeding the $138.4 billion forecast by analysts. This performance marks the company’s strongest growth since 2021, driven by what CEO Tim Cook described as “unprecedented demand” across every geographic segment.

The star of the quarter was the new iPhone 17 lineup. Revenue from the smartphone segment shot up 23% compared to the same period last year, reinvigorating demand in key markets.

In particular, Apple saw a dramatic turnaround in China, where sales climbed by 38%. Cook noted that it was the “best iPhone quarter in history in greater China,” with the company’s active device install base reaching an all-time high in the region.

While the iPhone flourished, other divisions saw a slight dip. Sales of Mac computers fell by just over 7%, and the wearables category – including the Apple Watch and AirPods – slipped by 3%.

Despite these minor declines, the overall hardware success has placed Apple in “supply chase mode.” Cook informed analysts that the company is currently constrained as it struggles to keep up with the overwhelming consumer appetite for the iPhone 17 and 17 Pro.

Investors remain keenly focused on Apple’s long-term artificial intelligence strategy. While competitors such as Microsoft have seen their stocks punished for heavy AI spending without immediate payoffs, Apple’s hardware-first approach appears to be weathering the storm.

The company recently confirmed a partnership with Google to power a “more personalized Siri” using Gemini AI models, a move intended to close the gap with rivals while maintaining Apple’s signature user experience.

Analysts suggest that Apple’s financial discipline is currently its greatest strength. While Microsoft spent over $37 billion on AI infrastructure last quarter, Apple’s planned $16 billion in capital expenditure remains conservative.

This focus on “execution and pricing discipline” over “incremental AI features” has helped the company hit a historic $4 trillion market value, as the broader tech industry faces questions about an AI bubble.

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