Apple closed its fiscal first quarter with earnings per share of $2.84 and revenue of $143.76 billion, representing year-over-year increases of 19% and 15.7%, respectively. Product revenue climbed 16% to $107.7 billion, driven by a 23% surge in iPhone sales that set all-time quarterly records across every geographic segment. Services revenue also reached an all-time high of roughly $30 billion, up 14% from the prior year. Greater China sales grew 38% to $25.5 billion, underscoring strength in the region.

CEO Tim Cook emphasized Apple Intelligence as an operating-system-level capability rather than a standalone service, designed to enhance discovery, shopping, customer service and in-app conversion. The partnership with Google was chosen for its technical foundation while maintaining Apple’s privacy standards; terms were not disclosed. On the payments front, Apple Pay eliminated more than $1 billion in fraud for partner institutions last year, and the company plans to expand the service into new markets, positioning device-centric security and network tokenization as drivers of future growth.

Apple forecast March-quarter revenue growth of 13% to 16%, noting that constraints on advanced-node chip supply—particularly 3-nanometer SoC production—limited iPhone output. While memory price increases had only minimal impact in December, the company expects these costs to exert more pressure on gross margins in the current quarter. Apple projects gross margins between 48% and 49% for March, and is evaluating a range of options to mitigate the effects of the global memory shortage.