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Apple (AAPL) is trading modestly lower despite delivering impressive fiscal Q1 (Dec) results, including its largest EPS upside in four years. While Apple is known for upside quarters, this one stood out as particularly strong. Revenue surged 15.7% yr/yr to a record $143.76 bln, well ahead of expectations. CEO Tim Cook described Q1 a "quarter for the record books," noting that iPhone demand was "simply staggering."

• Apple posted all-time revenue records in the Americas, Europe, Japan, and Rest of Asia Pacific, with growth across the vast majority of markets it tracks. Greater China revenue surged 38% yr/yr, driven by iPhone, which saw record upgraders and double-digit growth among switchers.
• iPhone revenue jumped 23.3% yr/yr to an all-time record $85.27 bln, well above the $78.65 bln Street estimate, driven by the iPhone 17 family. 
• Mac revenue declined 6.7% yr/yr to $8.39 bln, reflecting a difficult comparison against the M4 MacBook Pro, Mac mini, and iMac launches in the year-ago quarter. 
• iPad revenue increased 6.3% yr/yr to $8.6 bln, supported by an all-time record for upgraders.
• Wearables, Home, and Accessories revenue declined 2% yr/yr to $11.5 bln, impacted by supply constraints for AirPods Pro 3. Without those constraints, Apple believes the category would have grown.
• Services revenue rose 13.9% yr/yr to an all-time record $30 bln, roughly in-line with expectations. Records were set across advertising, music, payment services, and cloud services.

Why the stock is not reacting more positively: Apple cautioned that it expects constrained iPhone supply in Q2 (Mar), describing the situation as operating in "supply chase mode" amid exceptionally strong demand. Management acknowledged uncertainty around when supply and demand will rebalance. Constraints are being driven by limited availability of advanced semiconductor nodes used in Apple's SoCs. Additionally, Apple sees memory pricing increasing significantly, which may pressure gross margins in Q2 compared to the minimal impact seen in Q1.

Briefing.com Analyst Insight:

Apple delivered a standout fiscal Q1, highlighted by record revenue, massive iPhone upside, and continued strength in Services and emerging markets. However, the market's muted reaction reflects growing concern around near-term execution risks rather than demand. Supply constraints, rising memory costs, and uncertainty around gross margin pressure in Q2 are tempering enthusiasm following an otherwise exceptional quarter. While Apple's ecosystem strength and installed base expansion remain undeniable, the stock appears to be consolidating as investors wait for clearer visibility on supply normalization and margin durability.