Apple just announced its quarterly results, including $56.99 billion in iPhone revenue. That figure was slightly below analysts’ average expectations before the results were released, but Tim Cook told Reuters that Apple would have sold more if it had the supply.
Cook said demand for the iPhone 17 “was off the charts.” He said the supply of advanced processor nodes is limited and “there’s just a little less flexibility in the supply chain at the moment” in terms of getting more parts available.
All iPhone processors are made by TSMC, which is seeing a surge in chip demand thanks to the recent AI boom. If you go back a few years, Apple was by far TSMC’s biggest customer… but that’s not so true right now, giving the company less leverage.
Although chip availability may be a bottleneck, Apple continues to deftly navigate an environment of higher component prices for memory and other parts.
Apple reported a gross margin of 49.2% in the quarter, beating estimates. However, it should be noted that the overall gross margin figure includes a contribution from services, which have higher margins than hardware.
Apple does not break down unit sales for its hardware businesses and does not give official guidance on which models are doing best. However, it’s not hard to assume that the iPhone 17 Pro and Pro Max are leading the sales, with their trendy orange color option and redesigned aluminum chassis.
The base iPhone 17 was also an attractive option this year, featuring the same screen technology (including ProMotion and always-on display features) as the Pro models for the first time. Apple also launched the cheaper iPhone 17e in the March quarter.
Along with the iPhone’s strong performance, the Mac division also performed well, likely thanks to the popularity of the MacBook Neo. Overall, the company reported revenue of $111 billion and net income of $29.58 billion, a record for the March quarter.
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