SAN FRANCISCO, May 1 — Apple said yesterday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.

The pioneering Silicon Valley company reported profit of $29.6 billion on revenue of $111.2 billion in the recently ended quarter.

“Today Apple is proud to report our best March quarter ever,” chief executive Tim Cook said in an earnings call, noting revenue hit a record high for the three-month period.

Apple shares dipped slightly after the release but rose nearly four percent on optimism expressed on the earnings call.

During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook.

The earnings come as Apple prepares for a changing of the guard, with Cook to step down as chief executive late this year.

The future of Apple is being entrusted to a company veteran said to combine hardware brilliance with “the soul of an innovator.”

John Ternus, 50, will take over as Apple chief executive in September, with Cook becoming executive chairman of the iPhone maker’s board of directors.

“This is the most exciting time in my 25-year career at Apple,” Ternus said on the earnings call, declining to disclose details of the company’s roadmap.

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

A big question will be whether Ternus has “the appetite for the kind of bold, occasionally uncomfortable decisions” that defining an Apple AI platform will require, said IDC analyst Francisco Jeronimo.

Legendary Apple co-founder Steve Jobs was known for brutal honesty and unyielding perfectionism that led to culture-changing devices.

Apple celebrates its 50th anniversary this year as artificial intelligence challenges the legendary company to prove it can deliver yet another must-have innovation.

The brand’s hit products—the Mac, iPhone, Apple Watch and iPad—command a cult-like following, long after the company’s humble beginnings on April 1, 1976 in Jobs’s garage in Cupertino, California.

One concern haunting investors is that Apple appears to be easing into generative AI while rivals Google, Microsoft and OpenAI race ahead.

A promised upgrade to its Siri digital assistant was delayed in what analysts called a rare stumble for the company.

And rather than relying on its own engineers to overhaul Siri, Apple has turned to Google for AI capability.

But whether built in-house or outsourced, Apple’s obsession with user privacy and its premium hardware could position it to drive widespread adoption of personalized AI—and make it profitable, a goal that has proved elusive for much of the AI industry.

Apple delivered a “standout quarter” even though iPhone revenue came in just shy of expectations, according to Emarketer senior tech analyst Jacob Bourne.

“The question is whether incoming CEO John Ternus can translate this momentum into a credible AI strategy,” Bourne said.

“Investors will be watching for clues about how Ternus plans to balance Apple’s cautious AI posture with the pressure to define the next consumer device for the AI era.” — AFP