Apple’s December-quarter results were impressive, with a 23% increase in iPhone revenue and over 100 basis points of gross margin expansion. March-quarter guidance suggests continued high growth. China revenue saw a 38% year-over-year growth, showing competitive strength against domestic rivals. Supply constraints are limiting iPhone and AirPods production.

Despite supply constraints, Apple’s profitability and gross margin are on the rise, with projections of reaching a 50% gross margin in two years. The strong iPhone growth cycle is expected to continue in fiscal 2026, with revenue growth in the low teens. Shares were slightly up post-earnings, now valued at USD 260 per share.

Read more at Morningstar: Apple Earnings: Prolific Quarter Portends Terrific 2026 Growth