Apple delivered a blockbuster quarter, beating market expectations as strong iPhone demand and a sharper-than-expected rebound in China powered results. Total revenue rose 16% year on year to USD 143.76 billion, while earnings reached USD 2.84 per share, both ahead of estimates.
Zavier Wong, Market Analyst at eToro, said: “This is the result Apple investors have been yearning for. The beat was driven by a blockbuster iPhone quarter and a much stronger-than-expected rebound in China, with Greater China revenue coming in around USD 4 billion ahead of forecasts. iPhone sales jumped 23%, showing that Apple’s latest upgrade cycle is landing well, particularly at the premium end of the market, delivering the best-ever iPhone quarter.”
The strength in Greater China marks a significant positive for Apple, helping to ease concerns around competition and slowing demand in the region. Services were another standout, recording its first USD 30 billion quarter, underlining Apple’s long-term shift toward higher-margin, recurring revenue streams.
Apple also reinforced its position as a cash-generating powerhouse, producing nearly USD 54 billion in operating cash flow during the quarter. While the company has yet to fully reveal its AI strategy, this level of cash generation provides substantial flexibility to continue investing across AI, services, and its hardware ecosystem.
“This was a confidence-boosting result for Apple,” Wong added. “It reminds the market that when the iPhone cycle hits, Apple’s scale, pricing power and cash generation remain unmatched, giving the company momentum as attention turns to AI, services growth and its next phase of innovation.”
