Apple (AAPL) Q1 Beats, Forecasts Strong Q2 Growth Amid iPhone Surge and China Rebound

Apple (AAPL) reported record Q1 revenue driven by unprecedented iPhone 17 demand and a 38% surge in Greater China sales, while guiding Q2 revenue growth of 13-16% — above market expectations of 10%. iPhone revenue hit $85.27B (+23% YoY), exceeding forecasts by $6.6B, with record upgrades and double-digit Android switchers in China. Services rose 14% to $30.01B, buoyed by Apple TV’s 36% viewership growth. However, Mac (-7%) and Wearables (-2%) underperformed. Gross margin held at 48.2%, but CFO warned memory price hikes will pressure margins starting Q2. Apple acquired AI startup Q.ai for $1.6B and partnered with Google on Gemini to bolster Apple Intelligence. R&D spend jumped to $10.89B from $8.27B YoY.