Apple had a record-breaking March quarter partially thanks to excellent performance in China, but there's more to the story than just basic demand.
The US government went through a period of upheaval in 2025 thanks to the new administration's aggressive, random, and now illegal tariffs. While not much has improved in that regard, the relationship between the US and China has improved somewhat in the intervening year.
According to Apple CEO Tim Cook on CNBC, that improved relationship with China was a positive development, but not the drive. He claims it is that "the product has really resonated with the customer."
There's no doubt that demand for the iPhone 17 lineup has carried through into the blockbuster quarter. Of the $111.2 billion Apple brought in, $20.497 billion belonged to Greater China.
Compare that to the year-ago performance, $16 billion, and that's a $4.4 billion increase. It is certainly no small feat.
There have been concerns with demand in China thanks to political unrest between it and the United States. Chinese customers could easily decide to show loyalty to local brands that aren't based in a country engaged in a trade war.
However, Apple's iPhone 17 lineup was enough to spur demand, which was likely aided by the excellent entry iPhone 17e model that debuted during the quarter. The Mac also did well in part due to the MacBook Neo, but there has also been unprecedented demand for the M4 Mac mini due to AI trends.
Cook may have to face questions about the CEO transition or the status of the Apple Vision Pro during the earnings call, but China will likely be a lesser concern given the numbers. All eyes are on what's next as Cook takes on the role of Executive Chairman starting September 1 with John Ternus taking over as CEO.
