Apple Inc. has announced record quarterly revenue, driven by robust demand for the iPhone 17 series in India and other emerging markets, highlighting the country’s increasing significance to the company’s global growth strategy.
For the quarter ending 27 December, revenue surged nearly 16% compared to the previous year, reaching $143.8 billion, while net income climbed to a historic $42.1 billion. The iPhone played a pivotal role, generating $85.3 billion in sales.
Chief Executive Officer Tim Cook remarked that the momentum in newer markets is intensifying, particularly in India. Tim Cook indicated that there is ongoing progress in emerging markets, including India, where strong double-digit revenue growth was observed. He mentioned that the iPhone established “all-time” records across every geographical segment.
The results emphasize Apple’s strategy to expand its customer base beyond established markets such as the US and Europe, with India becoming increasingly vital for both sales growth and production expansion.
Apple’s rapidly expanding Services division hit a significant milestone, as revenue reached $30 billion for the first time. This segment, which encompasses the App Store, Apple Music, and iCloud, benefited from a growing installed base that now exceeds 2.5 billion active devices globally.
The company is also enhancing its investment in “Apple Intelligence,” its artificial intelligence platform. Apple confirmed a collaboration with Google to bolster future foundational models, a strategic move aimed at making Siri more personalised and efficient through a mix of on-device processing and private cloud computing.
Nevertheless, revenue from the Mac segment fell by 7%, reflecting challenging year-on-year comparisons, while Wearables saw a 2% decline due to supply chain issues concerning the new AirPods Pro 3.
During the December quarter, Chief Financial Officer Kevan Parekh reported that record business performance and strong margins resulted in a 19% increase in EPS, setting a new all-time EPS record. These exceptionally strong outcomes produced nearly $54 billion in operating cash flow, enabling the return of almost $32 billion to shareholders.
Apple anticipates that momentum will continue into the spring quarter, even amidst increasing costs for memory components, a challenge faced by the wider consumer electronics sector.