iPhone Sales Hit All-Time High in Apple’s Latest Earnings

Apple’s latest quarterly earnings show that iPhone sales reached a record high in the final three months of last year, driven by demand for the new iPhone 17 range.

Apple released its first-quarter earnings on Thursday, covering the fiscal period that ended on December 27. In its earnings announcement, the company reported total revenue of $143.8 billion, an increase of 16% compared with the same quarter a year earlier. This marked Apple’s fastest growth rate since 2021.

The company says the performance was supported by stronger sales across several regions, including China, Europe, the Americas, and Japan.

“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16% from a year ago and well above our expectations,” says Tim Cook, Apple’s CEO. “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14% from a year ago. We are also excited to announce that our installed base now has more than 2.5 billion active devices, which is a testament to incredible customer satisfaction for the very best products and services in the world.”

Revenue from the iPhone rose 23% compared with the same period last year. Apple attributed this growth largely to strong demand for its latest smartphones, the iPhone 17 range, which launched in September. The iPhone 17 and iPhone 17 Pro were highlighted as key drivers, particularly in China, where sales had previously fallen short of expectations.

“We set an all-time record for upgraders in mainland China, and we saw double-digit growth on switchers,” Cook says.

Upgraders are existing iPhone users who purchased a newer model, while switchers are customers who moved to the iPhone from a competing brand.

However, all parts of Apple’s business performed as well. Revenue from wearables and accessories, including products such as the Apple Watch and AirPods, declined by around 3%. Sales of Mac computers also disappointed investors, falling 7% year on year despite the release of a new MacBook Pro with Apple’s M4 chip in November.

The iPad division posted more positive results. Revenue from iPad sales increased 6% from a year earlier to $8.6 billion, exceeding expectations. In his statement, Cook says that half of iPad buyers during the quarter were purchasing the device for the first time.

Image credits: Header photo licensed via Depositphotos.