Apple Posts Record Revenue of $111.2B as iPhone 17 Demand Surges
Apple reported its best March quarter ever with $111.2 billion in revenue (+17%), driven by record iPhone 17 demand and 28% growth in China. Tim Cook, preparing to hand the CEO role to John Ternus on September 1, highlighted Apple’s unique AI strategy of partnering with OpenAI and Google instead of building its own model.
Financial Highlights:
- Net profit of $29.6 billion
- iPhone revenue reached a record $58 billion
- Greater China sales grew by 28% to $20.5 billion
- Services revenue hit an all-time high of $31 billion
- Authorized a new $100 billion share buyback
Despite the impressive numbers, Cook warned about "significantly higher memory costs" impacting margins in the upcoming June quarter.
Apple’s AI Strategy: A Rebuke to Conventional Wisdom
Apple’s results stand in contrast to the spending splurge on AI by competitors like Meta, Amazon, and Alphabet. Instead of building its own large language models or data centers, Apple partnered with OpenAI and Google, integrating their AI models into its devices through Apple Intelligence. This approach prioritizes user privacy and positions AI as an essential part of their devices, not a standalone feature.
The financial results suggest this strategy is paying off. Apple is reaping the benefits of AI without incurring the infrastructure costs that are squeezing margins at other tech giants. The iPhone 17’s record demand is partly attributed to these AI-powered features.