Apple Reports Record $111.2B Revenue as iPhone 17 Sales Surge but Warns of Rising Chip Costs
Apple Inc. reported its strongest March quarter ever, with total revenue surging 17% year-over-year to $111.2 billion, driven by blockbuster iPhone sales that jumped 22% to $57.99 billion. Despite these record results, the company warned of rising memory-chip costs and persistent shortages for Mac computers, even as it forecasted robust growth for the coming quarter that exceeded Wall Street expectations.
The iPhone 17 lineup has emerged as the most popular in Apple's history, according to CFO Kevan Parekh, who highlighted its unprecedented demand amid supply constraints. As reported by Bloomberg, Apple couldn't ship enough units to meet "off the charts" interest, a paradox fueled by the chip industry's shift toward AI servers, which has squeezed memory (DRAM) supplies and pressured margins. Parekh signaled that these higher costs could push pricing upward for the iPhone 18.
On the Mac front, CEO Tim Cook revealed during Thursday's earnings call that the Mac Mini is being snapped up faster than predicted, particularly for AI workloads, leading to backlogs expected to linger for several months. Business Insider noted this high demand is straining the supply chain, while Bloomberg emphasized that Mac shortages will persist amid the broader memory crunch. These issues haven't derailed Apple's optimism, as its third-quarter revenue outlook topped analyst estimates.
The results come at a transitional moment for Apple, with Tim Cook preparing to step down after 15 years as CEO, as mentioned in BBC reporting. iPhone strength, bolstered by gains in key markets like China—where Apple captured over 20% share and turned projected declines into growth—has propelled the company toward a potential record year. IDC forecasts Apple could ship over 247 million iPhones in 2025, with total value exceeding $261 billion, outpacing global smartphone growth.
Consumers and businesses reliant on Apple's hardware face delayed deliveries, particularly for entry-level Macs popular in AI applications, while investors cheered the upbeat guidance. Looking ahead, Apple anticipates 10-12% revenue growth in the December quarter, though escalating component costs pose risks to profitability. The company's ability to navigate these supply hurdles will be crucial as it eyes further AI-driven demand and navigates leadership changes.