Apple hails 'extraordinary' iPhone demand as boss Tim Cook heads out

Apple has seen demand for its iPhone reach new heights with sales growth in China outpacing all other regions.

Overall, sales of Apple products grew 17% to $111bn (£81bn) in the first three months of the year, compared to the same quarter a year ago, the company said in financial results released Thursday. Sales in China were up by 28% compared to a year ago.

Tim Cook, Apple's outgoing chief executive, said that recent demand for the iPhone had been "extraordinary", making the iPhone 17 the "most popular launch in [Apple's] history."

Despite continued iPhone success, sales of Apple's other products, including the Mac computer and wearable devices like the Apple Watch, remained relatively flat.

However, Cook told financial analysts on a call to discuss the company's performance that the new Macbook Neo was seeing "off the charts" demand. He said the quarter set a record for new Mac buyers thanks to the Neo, which is sold at a significantly lower price than other Mac laptop computers.

Beyond current products, Cook said Apple Intelligence, the company's artificial intelligence (AI) product, will be updated later this year, and included as part of its Siri voice-assistant.

"This is not AI as a standalone feature, but AI as an essential and intuitive part of our devices," Cook said. He added that Apple's angle on AI is to be "respectful of user privacy", something that he said made it clear why Apple platforms were "the best places to experience AI".

Apple's rollout of AI features has set it apart from the broader technology industry.

Instead of pouring hundreds of billions of dollars into a race to build its own AI model, the company has chosen to partner with companies like OpenAI and Google to weave in their AI technology to power some Apple features.

While some have criticised Apple as a late-mover on this wave of AI technology, the company is far less exposed to potential losses if the huge expectations of AI are not realised.

Given Cook's imminent move from chief executive to chairman role, he took a moment to praise John Ternus, the longtime Apple hardware executive who will become the next Apple boss on 1 Sept.

"I know he will push us to go further than we think is possible in order to deliver products for our users," Cook said.

Ternus spoke briefly for the first time to financial analysts on the call, saying that he plans to keep up Cook's habit of financial "discipline" and alluded to future product roll-outs.

"We have an incredible roadmap ahead…suffice it to say this is the most exciting time in my career at Apple to be building products and services," Ternus said.