Apple forecasts up to 16% revenue growth as iPhone sales soar in India and key markets

Apple has projected stronger-than-expected revenue growth for the March quarter, driven by robust demand for its latest iPhones and a recovery in key international markets, including China and India.

The iPhone maker said it expects revenue in its fiscal second quarter to rise between 13% and 16%, exceeding market expectations of around 10%. The upbeat outlook follows a solid holiday quarter in which Apple posted results that surpassed analysts’ estimates, easing concerns around a slowdown in hardware sales.

As per a report by Reuters, Apple CEO Tim Cook described demand for the latest iPhone lineup as “staggering,” noting that the devices helped lift sales across major regions. The company’s shares rose sharply in extended trading after the results, before moderating gains later in the session.

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For the quarter ended December 27, Apple reported total revenue of $143.8 billion, a 16% increase from a year earlier and ahead of analyst forecasts. Earnings per share came in at $2.84, comfortably beating expectations. The company also said its active installed base has reached 2.5 billion devices worldwide.

iPhone revenue climbed to $85.27 billion, significantly above market estimates, with Apple reporting record handset sales across every geographic segment. Cook said the company gained market share during the December quarter, including against Android devices.

Growth was particularly strong in Greater China, where revenue surged 38% year-on-year to $25.53 billion, surpassing expectations despite competition from local brands and regulatory pressures. Apple also pointed to accelerating demand in India as a key growth driver.

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However, Apple cautioned that supply constraints could weigh on performance in the coming quarters. Cook said processor availability remains tight due to limitations at chip manufacturing partners, while rising memory chip costs are expected to pressure margins. The company forecast gross margins of 48% to 49% for the March quarter, slightly below recent levels as the impact of a global memory-chip shortage begins to show.

The shortage, exacerbated by increased demand from artificial intelligence data centres, is pushing up prices for DRAM and other components across the electronics industry. Apple said it is evaluating multiple options to manage rising input costs but declined to comment on potential price hikes.

Apple also flagged a softer-than-expected performance in its wearables, home and accessories segment, which missed market estimates despite strong demand for newly launched products.