Apple reported stronger-than-expected fiscal first-quarter earnings, with revenue up 16% year-over-year and net income of $42.1 billion, or $2.84 per share, surpassing analyst forecasts.

iPhone sales surged 23% to $85.27 billion, driven by strong demand for the iPhone 17, while the active installed base of Apple devices grew to 2.5 billion.

Services revenue rose 14% to $26.34 billion, and iPad sales grew 6% to $8.6 billion, though Mac sales fell 7% and Wearables revenue declined 2%, missing estimates.

China was a standout market, with sales up 38%, fueled by upgrades and new users switching from other brands, CNBC has reported.

Apple highlighted its AI strategy, including a partnership with Google’s Gemini model, and noted that memory price increases and chip supply constraints may affect the current quarter, while the company spent nearly $32 billion on share repurchases and dividends.