Apple sales surge 16% on ‘staggering’ iPhone demand. Software stocks enter bear market.

Apple reported fiscal first-quarter earnings on Thursday that surpassed expectations, with revenue soaring 16% on an annual basis.
The company reported $42.1 billion in net income, or $2.84 per share, versus $36.33 billion, or $2.40 per share, in the year-ago period.
Apple saw particularly strong results in China, including Taiwan and Hong Kong. Sales in the region surged 38% during the quarter to $25.53 billion.

Investors question whether AI competitors and automation tools could erode demand for traditional software licenses and workflows.
The concern about the AI threat outweighed solid earnings from bellwether names like ServiceNow.
The iShares Expanded Tech-Software Sector ETF is now down about 22% from its recent high, pushing the software industry into bear-market territory.