Apple reported fiscal first‐quarter revenue of $143.8 billion, up 16% year‐over‐year, driven by a 23% increase in iPhone net sales. Gross margin expanded to 48.2%, the highest level in recent quarters, reflecting successful premium pricing strategies and strong demand for the iPhone 17 lineup. In Greater China, iPhone revenue surged 38% to $25.5 billion, marking the fastest regional growth rate in four years and underscoring the resilience of Apple’s flagship device business against competitive headwinds.

Product gross margin climbed to 40.7%, up from 38.9% in the prior year’s first quarter, as a favorable product mix and price increases more than offset higher memory costs. Services revenue grew 14% to $24.3 billion, with a services gross margin of 76.5%, contributing materially to overall profitability. Operating expenses rose 12% year‐over‐year, slightly tempering operating margin gains, but management highlighted disciplined expense control and ongoing investments in AI and software as key to sustaining long-term margin improvement.

For the second quarter, Apple projected gross margin in the 48–49% range and revenue growth in the mid‐teens, signaling continued strength across both hardware and services. The company’s active installed device base now exceeds 2.5 billion units, a record milestone that provides a growing platform for recurring services revenue and bolsters cross-sell opportunities for emerging products such as Apple Intelligence features. Management emphasized that the expanding ecosystem and stickiness of the installed base will underpin sustained earnings growth over the coming fiscal year.