Apple has posted stronger-than-expected financial results, with global demand for its iPhone reaching new highs and sales growth in China leading all regions.
The company reported that overall revenue rose 17% to $111 billion (£81 billion) in the first quarter compared with the same period last year, driven largely by continued strength in iPhone sales. China stood out as the fastest-growing market, where revenue climbed 28% year-on-year, underscoring a renewed surge in demand in one of Apple’s most important international markets.
Outgoing chief executive Tim Cook described demand for the latest iPhone lineup as “extraordinary,” saying the iPhone 17 had become the company’s most successful product launch to date. While smartphones drove growth, other hardware categories such as Mac computers and Apple Watch devices showed relatively flat performance.
One notable exception was the newly released Macbook Neo, which Cook said had seen “off the charts” demand. The device’s lower price point compared with other Mac models helped Apple record a historic wave of first-time Mac buyers during the quarter.
Apple also provided updates on its artificial intelligence strategy. Cook said the company’s Apple Intelligence platform will be expanded later this year and integrated into Siri. He emphasised that Apple’s approach differs from competitors, focusing on embedding AI into devices rather than building large standalone systems. The company has partnered with firms including OpenAI and Google to support some of its AI features, a strategy that reduces its exposure to the high costs and risks of large-scale AI model development.
Attention also turned to Apple’s leadership transition. Cook confirmed that John Ternus, a long-time hardware executive, will take over as chief executive on 1 September. Ternus told analysts that Apple will maintain its focus on financial discipline while continuing to develop new products, describing the company’s pipeline as the most exciting phase of his career.
In the broader tech sector, Reddit also reported strong quarterly growth, with revenue rising 69% as user engagement increased across its platform. The company said more than 200 million users in the United States now visit weekly, while long-term ambitions aim to significantly expand daily global usage. Reddit also highlighted its growing role in supplying data for artificial intelligence systems, through partnerships with firms such as OpenAI and Google.
Roblox, however, faced a setback, with shares falling sharply after the company reported weaker-than-expected user growth. Executives said stricter age verification rules had slowed engagement and new user acquisition, despite overall revenue gains. The platform has yet to record a profitable quarter since going public in 2021, and revised financial expectations weighed on investor sentiment.
