Apple Inc. signaled renewed momentum in its core business this week, pointing to strong demand for its latest devices even as supply constraints continue to shape how much it can deliver.

The company said demand for the iPhone 17 has exceeded expectations, helping support a forecast for double-digit revenue growth in the current quarter. Shares rose in after-hours trading following the update, reflecting investor relief at a time of leadership transition and intensifying competition in artificial intelligence.

Chief Executive Tim Cook described demand as unusually strong, but acknowledged that shortages of advanced processor chips limited how many devices could be shipped. Those chips, produced using similar manufacturing processes to high-end AI components by TSMC, remain in tight supply.

For the quarter ended March 28, iPhone revenue reached $56.99 billion, slightly below analyst expectations. The company indicated that performance would likely have been stronger if supply had kept pace with demand.

Growth was not limited to smartphones. Apple pointed to early traction for its lower-priced MacBook Neo, which has entered a segment long dominated by budget laptops. Mac revenue came in at $8.4 billion, above forecasts, helped in part by initial sales of the new device.

Overall, Apple reported quarterly revenue of $111.18 billion and earnings of $2.01 per share, both ahead of market estimates. Services revenue also exceeded expectations, reaching $30.98 billion, while sales in greater China came in stronger than analysts had projected.

Even so, cost pressures are beginning to surface. The company said it expects significantly higher memory chip costs in the current quarter, which will weigh modestly on margins. Gross margin guidance suggests a slight decline from the previous quarter, though still above market expectations.

Apple also announced a $100 billion share buyback, alongside a shift in its capital strategy. Executives said the company would no longer target a neutral net cash position, opting instead to retain greater financial flexibility.

The update comes ahead of Apple’s annual developer conference in June, where further details on its artificial intelligence plans are expected. Research and development spending has already risen sharply, increasing more than 30 percent year-on-year in the latest quarter.

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For now, the company appears to be balancing two pressures at once: strong consumer demand for its devices and the practical limits of a strained global supply chain.