Apple shares rise after strong earnings beat

Apple Inc. reported stronger-than-expected quarterly results on Thursday, posting its best-ever start to the year as iPhone demand and digital services growth helped lift earnings above forecasts.

The Silicon Valley giant recorded a profit of $29.6 billion on revenue of $111.2 billion in the latest quarter, News.Az reports, citing AFP.

CEO Tim Cook said on an earnings call that it was the company’s “best March quarter ever,” adding that revenue reached a record high for the three-month period.

Following the announcement, Apple shares initially dipped slightly but later rose nearly 4% amid optimism expressed during the earnings call.

Cook said iPhone sales grew by double digits in nearly every market where Apple operates, while the company’s services division reached an all-time high. The results were supported by strong demand for the upcoming iPhone 17, which investors see as a key driver of future growth.

The earnings report comes at a transitional moment for Apple, as Cook is set to step down as CEO later this year. He will move into the role of executive chairman of the board.

His successor, longtime Apple executive John Ternus, is scheduled to take over in September. Ternus described the moment as the most exciting period of his 25-year career at Apple, though he declined to provide details on future product plans.

“There are so many opportunities before us, and I couldn’t be more optimistic about what’s to come,” he said on the call.

Analysts say a major challenge for the incoming CEO will be defining Apple’s artificial intelligence strategy. IDC analyst Francisco Jeronimo noted that Apple may need to make bold decisions to compete in the rapidly evolving AI sector.

Apple, which celebrates its 50th anniversary this year, faces growing pressure as competitors such as Google, Microsoft, and OpenAI advance aggressively in generative AI. The company has been criticized for moving more cautiously, including delays to an upgrade of its Siri digital assistant, which analysts described as an unusual misstep.

Reports also suggest Apple has leaned on external partnerships, including Google, to bolster its AI capabilities rather than relying solely on internal development.

Despite concerns, analysts say Apple’s strong focus on privacy, premium hardware, and ecosystem integration could help it successfully monetize personalized AI tools in the future.

Emarketer senior analyst Jacob Bourne described the quarter as a “standout performance,” though he noted iPhone revenue slightly missed expectations.

“The question is whether incoming CEO John Ternus can translate this momentum into a credible AI strategy,” Bourne said, adding that investors will closely watch how Apple balances caution with innovation as it positions itself for the next generation of consumer technology.

News.Az 

By Nijat Babayev