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Apple delivered strong iPhone sales and healthy profit margins in its latest quarter, providing a solid financial foundation for incoming CEO John Ternus.
The company reported quarterly revenue of $111.2 billion, beating Wall Street expectations, driven by a 21.7% surge in iPhone sales to nearly $57 billion. Customers upgraded devices at a brisk pace, fueled by excitement over the iPhone 17 lineup.Apple’s gross profit margin reached 49.3%, also exceeding forecasts and underscoring the strength of its premium business.
iPhone sales in China jumped 28% in the quarter, marking a second straight period of strong growth after years of weakness. The results helped Apple claim the top global smartphone market share position in the March quarter for the first time, according to Counterpoint Research. Its dominance in the premium segment helped shield it from rising component costs.
Apple Chief Financial Officer Kevan Parekh noted that results could have been even stronger if not for supply constraints on advanced chips, as Taiwan Semiconductor has been diverting more capacity to AI chipmakers like Nvidia.
Higher memory costs are expected to pressure the broader smartphone industry this year, with IDC forecasting a 13% drop in global shipments in 2026. Lower-end Android makers are likely to suffer most, while Apple and Samsung are positioned to gain market share.
Ternus, currently set to succeed Tim Cook as CEO on Sept. 1, will participate in Apple’s earnings call this afternoon. He will take the helm just before the expected launch of a new foldable iPhone, which Counterpoint projects could capture nearly half of the North American foldable market in its first year.
Apple has also recently launched more aggressively priced entry-level devices, including the iPhone 17e.