Apple reported fiscal first-quarter revenue of $143.8 billion, a 16% year-over-year increase, marking its fastest quarterly top-line growth in four years. iPhone net sales reached $85.3 billion, up 23% from the prior year, fueled by the launch of the iPhone 17. China was a standout market, with iPhone revenue growing 38% year-over-year to $25.5 billion, while India and other emerging markets also contributed double-digit gains as new smartphone buyers entered the ecosystem.

Gross margin expanded to 48.2%, up 150 basis points sequentially, driven by a favorable product mix and aggressive premium pricing on accessories and wearables. Product gross margin climbed to 40.7%, its highest level in six quarters. Services revenue rose 14% year-over-year on a 76.5% margin, reflecting continued strength in App Store transactions, cloud services and digital subscriptions. Management guided second-quarter gross margin between 48% and 49%, suggesting further profitability gains despite rising component costs.

Apple positioned its new Apple Intelligence platform as an operating-system-level capability designed to enhance user workflows across devices. With over 2.5 billion active devices in its installed base, the company emphasized that AI will drive deeper engagement in hardware and recurring services. The announcement of a strategic partnership with Google to incorporate generative AI models into Siri and Spotlight search underscores Apple’s commitment to private, on-device intelligence, while laying the groundwork for future subscription-based AI features.