Apple recently announced its quarterly results, including $56.99 billion in iPhone revenue. This number is slightly below the average of analysts’ earnings expectations, but Tim Cook told Reuters If Apple had the supply it would sell more.
Cook said iPhone 17 Demand was “off the charts”. He said supply of advanced processor nodes is constrained and “there is a little less flexibility in the supply chain at the moment” in terms of making more parts available.
All iPhone processors are manufactured by TSMC, which has been experiencing a surge in chip demand recently due to the AI boom. If you go back a few years, Apple was TSMC’s biggest customer by a mile… but that’s not true right now, which makes the company less profitable.
While the availability of chips can be a hurdle, Apple continues to deftly navigate the environment of high component pricing for memory and other parts.
Apple reported a gross margin of 49.2% during the quarter, beating estimates. However, it is worth noting that the overall gross margin figure includes the contribution of services, which have higher margins than hardware.
Apple does not break down unit sales for its hardware businesses, nor give official indications of which models are performing better. However, it is 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 has also been an attractive option this year, featuring the same screen technology as the Pro model for the first time (including ProMotion and Always-On Display features). Apple also launched the lower-priced iPhone 17e during the March quarter.
Along with the strong performance of the iPhone, the Mac division also performed well, likely driven by the popularity of the MacBook Neo. Overall, the company reported revenue of $111 billion and net profit of $29.58 billion, a record for the March quarter.
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