# services revenue

iPhone 17 Supercycle Fuels Record Quarter — but AI‑Driven Chip Squeeze Puts Margins at Risk

Apple reported a record fiscal Q1 driven by iPhone 17 sales and a services business that exceeded $30 billion in a single quarter. Strong results mask strategic challenges: surging memory prices driven by AI infrastructure demand threaten gross margins, even as Apple pursues a device‑centric AI strategy built around partnerships and selective acquisitions.