Kuala Lampur, May 1 -- SAN FRANCISCO, May 1 - Apple said yesterday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.

The pioneering Silicon Valley company reported profit of $29.6 billion on revenue of $111.2 billion in the recently ended quarter.

"Today Apple is proud to report our best March quarter ever," chief executive Tim Cook said in an earnings call, noting revenue hit a record high for the three-month period.

Apple shares dipped slightly after the release but rose nearly four percent on optimism expressed on the earnings call.

During the quarter, iPhone sales grew by double digits in just about every country where it does business, and i...