Apple just announced its quarterly results, including $56.99 billion in iPhone revenue. This is slightly below average analyst expectations for earnings, but Tim Cook tells Reuters that Apple would have sold more if it had had the offer.
cook said iPhone 17 The demand “was off the charts.” He said the supply of advanced processor nodes is limited and that “right now there is a little less flexibility in the supply chain” in terms of getting more parts available.
All of the iPhone’s processors are made by TSMC, which is seeing increases in demand for chips thanks to the recent rise of AI. If we go back a few years, Apple was TSMC’s largest customer by far… but that’s not as true right now, giving the company less leverage.
While chip availability may be a bottleneck, Apple continues to deftly navigate the environment of higher prices for memory components and other parts.
Apple reported gross margins of 49.2% during the quarter, above estimates. However, it’s worth noting that the overall gross margin figure includes a contribution from services, which have higher margins than hardware.
Apple doesn’t break down unit sales for its hardware businesses or give official indications about which models are performing 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 has also been an attractive option this year, featuring the same display technology (including ProMotion and always-on display features) as the Pro models for the first time. Apple also launched the lower-priced iPhone 17e during the March quarter.
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