Apple credits ‘most popular’ ever iPhone for booming sales

{"text":[[{"start":7.85,"text":"Apple forecast better than expected growth after another quarter of strong sales driven by its “most popular” iPhone model ever, as the tech giant prepares for its first change of chief executive in 15 years."}],[{"start":20.049999999999997,"text":"The $4tn smartphone maker surpassed Wall Street expectations with $111.2bn of revenue in the three months to the end of March, up about 17 per cent from a year ago, and forecast similar growth in the current quarter."}],[{"start":35.099999999999994,"text":"Apple CEO Tim Cook said “extraordinary demand” for the iPhone 17 family powered the company’s strongest ever financial results for this period of the year."}],[{"start":45.55,"text":"The second consecutive quarter of double-digit sales growth adds to Apple’s momentum as Cook prepares to hand over the reins to hardware chief John Ternus in September."}],[{"start":55.099999999999994,"text":"Ternus on Thursday signalled continuity in his first public comments since the announcement last week. He pledged to continue Cook’s “deep thoughtfulness, deliberateness and discipline when it comes to the financial decision-making of the company”."}],[{"start":68.19999999999999,"text":"“We have an incredible roadmap ahead,” he told analysts, quipping that “you’re not going to get me to talk about the details”."}],[{"start":null,"text":"

"}],[{"start":75.29999999999998,"text":"Cook said the timing was right for a transition given the business was “performing extremely well”."}],[{"start":82.09999999999998,"text":"Apple expects year-over-year sales to grow 14-17 per cent in the current quarter, much faster than Wall Street estimates compiled by Visible Alpha. Shares rose 1.9 per cent in after-hours trading."}],[{"start":95.74999999999999,"text":"iPhone sales rose more than 20 per cent to $57bn in the first three months of 2026, driven in part by strong sales in China for the iPhone 17. Total revenue from China reached $20.5bn, continuing a recent rebound and up 28 per cent on a year ago."}],[{"start":116.94999999999999,"text":"“The iPhone 17 family is now the most popular line-up in our history . . . we believe we gained market share during the quarter,” Apple’s chief financial officer Kevan Parekh told the FT."}],[{"start":127.94999999999999,"text":"Despite two quarters of record sales, however, Apple stock has been broadly flat this year, reflecting concerns about its AI strategy, cost pressures and where the next phase of device growth will come from."}],[{"start":139.85,"text":"Apple, along with the rest of the consumer electronics industry, is facing an increase in memory chip costs caused by a massive surge in demand to build AI data centres."}],[{"start":null,"text":""}],[{"start":149.79999999999998,"text":"This has raised concerns about a potential hit to the margin on Apple’s products. It increased prices for its MacBook Air and Pro laptops last month. "}],[{"start":158.6,"text":"Cook said he expects memory costs to have an “increasing impact on our business” throughout the rest of the year. Supplies of iPhones and Macs had been “constrained” as Apple had “less flexibility in the supply chain than we normally would”, he said. "}],[{"start":172,"text":"In spite of those pressures, Apple reported it had increased its gross margins to 49.3 per cent compared with 47 per cent a year ago. Cook said using up its inventory of chips bought at lower prices had helped defer the hit to costs. It expects margins between 47.5 per cent and 48.5 per cent in the current quarter."}],[{"start":195.4,"text":"“The key question will be deciding the perfect balance . . . between increasing prices and maintaining profitability, or focusing on gaining share by not increasing prices,” said Nabila Popal, senior research director at the market intelligence firm IDC."}],[{"start":210.15,"text":"Investors are also waiting for signs that the company’s AI features have caught up after a faltering start nearly two years ago."}],[{"start":217.4,"text":"Apple has sat out the expensive race to build AI infrastructure pursued by its Big Tech peers, instead relying on outside models. In January, it struck a deal to use Google’s models and is expected to unveil a new AI-powered Siri voice assistant at its developer conference in June after long delays."}],[{"start":237.15,"text":"Following the success of the iPhone 17 series, Apple is scheduled to announce a foldable smartphone in the autumn in a push to drive more device sales. "}],[{"start":245.3,"text":"Mac revenue was $8.4bn, up about 6 per cent year on year, after Apple launched its $599 affordable MacBook Neo laptop in March."}],[{"start":255.95000000000002,"text":"Apple’s services revenue — relating to businesses such as the App Store and iCloud — grew to $31bn, beating expectations. Net income was also better than expected at $29.6bn, up about 19 per cent year on year."}],[{"start":272.85,"text":"The company announced a share buyback plan of $100bn, in line with historical trends, and boosted its dividend by 4 per cent to $0.27 per share."}],[{"start":284.55,"text":"Parekh announced that Apple would scrap its commitment to having roughly equal amounts of cash and debt, a “net neutral” policy it adopted in 2018. He said the company would pursue “more optimal economic decisions” by independently evaluating how it manages its cash and debt. "}],[{"start":301.65000000000003,"text":"After shouldering several billion dollars in US tariff costs last year, Cook said Apple could seek a refund on Donald Trump’s levies following the Supreme Court’s ruling against the emergency duties."}],[{"start":314.90000000000003,"text":"“We plan to reinvest any amount we receive back into US innovation and advanced manufacturing,” Cook said."}],[{"start":328.90000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777598921_3809.mp3"}