Apple reported record Q1 earnings, surpassing expectations with iPhone revenue of $85.3 billion, beating forecasts of $78.3 billion. CEO Tim Cook warned of potential margin impacts due to a global memory shortage, projecting Q2 margins of 48-49%. Overall, Apple earned $2.84 per share on $143.8 billion in revenue, exceeding analyst predictions of $2.68 EPS on $138.4 billion. Additionally, China sales surged 38% to $25.5 billion, indicating a resurgence in that market.