iPhone 17 demand, services could lift Apple shares

Apple reported March-quarter revenue of $111 billion, a 17% increase year over year, and said iPhone revenue rose 22%. The company attributed the gains to strong demand for the iPhone 17, with sales rising in markets outside the United States, particularly in China.

Morningstar analyst William Kerwin noted, “The iPhone’s growth, led by the iPhone 17, continues to impress, particularly in China.” Kerwin also pointed to strong profitability during the quarter despite rising memory prices.

Apple increased base storage on new iPhone models and pursued longer supply contracts for components, actions the company reports as measures to limit cost pressure from higher memory prices.

Kerwin projects the iPhone will lead most sales in the near term but expects services revenue to grow faster over coming years. He forecasts double-digit services growth through 2030, driven by App Store revenue and search-related payments.

The Direxion Daily AAPL Bull 2X Shares (AAPU) is designed to deliver twice the daily performance of Apple stock. Leveraged ETFs magnify daily moves and are intended for short-term, experienced traders. The issuer provides an education center for investors who want more information on these products.

Market participants are watching iPhone 17 uptake, services revenue trends and supply-chain measures for signs of how Apple’s revenue and profit patterns may evolve in coming quarters.