It is no secret that the iPhone has always been Apple’s star performer. It’s the device that consistently drives revenue and Apple’s first quarter earnings this year prove it yet again.
Yesterday, Apple reported iPhone revenue of $85.3 billion, illustrating a 16% increase compared to last year and smashing Wall Street expectations of around $78 billion by a huge margin. They have also predicted a growth of 16% in the current quarter, matching the period that just ended.
Globally, the iPhone performed well across nearly all regions. China bounced back strongly, contributing significantly to overall growth, while the Americas and Europe also showed impressive numbers. Not surprisingly, the new iPhone 17 series played a significant role in this record-breaking sales.
Of course, not every product had a stellar quarter. Wearables and accessories, including Apple Watch and AirPods, dipped about 3%, and Mac sales fell just over 7%.
While one would think that such out of the ballpark sales numbers of the iPhone are a cause for celebration, the people at Apple are not so sure. In fact, the company is feeling a bit of pressure thanks to staggering demand—in the words of CEO Tim Cook, they are “currently constrained.”
As Apple’s first quarter earnings show, the combination of an expanding global footprint and the rising popularity of iPhones has created an extraordinary level of demand. The challenge? They’ve built a product so popular that everyone wants one, putting significant pressure on production and keeping them in constant “supply chase mode”. On top of that, the shortage of memory chips adds another layer of risk.
So essentially, Apple is suffering from success—and honestly, it’s pretty classic for them to have a problem like this.
