Apple Forecasts Strong Revenue Growth as iPhone Demand Surges in China and India

Apple has delivered another upbeat outlook, forecasting revenue growth of 13% to 16% for its fiscal second quarter, well above Wall Street expectations of around 10%. The positive guidance follows a strong holiday quarter in which Apple beat estimates, driven largely by soaring iPhone demand and a notable rebound in China alongside accelerating growth in India.

In its fiscal first quarter ended December 27, Apple reported total revenue of $143.8 billion, up 16% year over year and comfortably ahead of analyst forecasts. Earnings per share reached $2.84, beating expectations, while iPhone revenue climbed to a record $85.27 billion, far surpassing estimates. CEO Tim Cook described demand for the latest iPhone 17 lineup as “staggering,” noting that Apple achieved its biggest iPhone quarter ever and gained market share across key regions.

Apple shares initially rose 3.5% in extended trading after the earnings release before paring gains to trade up about 0.8%. Investors were encouraged by signs that concerns over a hardware sales plateau may be easing, as iPhone sales set records in every geographic segment despite broader macroeconomic uncertainty.

China was a standout performer, with sales jumping 38% year over year to $25.53 billion, well above expectations. Cook said the iPhone reached record sales levels in the region and attracted a double-digit increase in users switching from Android devices. India also continued to show strong momentum, reinforcing Apple’s growth strategy in emerging markets. The company now boasts an installed base of 2.5 billion devices worldwide.

However, Apple cautioned that processor supply constraints and a global memory chip shortage could pressure margins. The company forecast gross margin of 48% to 49% for the second quarter, slightly impacted by rising DRAM memory and commodity costs. While services growth remains critical to offset potential margin pressure, Apple’s strong pricing power and scale may help it navigate supply challenges better than rivals.

Overall, Apple’s robust iPhone demand, expanding global footprint, and growing installed base underline its resilience as it heads into the next quarter.