Apple Reports Record Smartphone Sales Amidst Unprecedented Demand
In a stunning testament to the iPhone's popularity, Apple has announced phenomenal sales figures in its fiscal first quarter, with revenue far exceeding Wall Street's expectations. With significant growth driven by the iPhone 17 series, the company is witnessing record-breaking demand that has left even its executives astonished. CEO Tim Cook elaborated on the surge in interest and how Apple thrives in an ever-competitive market.
iPhone 17 series (with the exception of the iPhone Air) has generated an overwhelming response from consumers. Apple disclosed that it achieved $85.27 billion in iPhone sales during the fiscal first quarter, a leap from analysts' estimates of $78.65 billion. The iPhone 17 line helped boost sales by an impressive 23% compared to the previous year. For reference, in fiscal Q1 of 2025, total iPhone sales were reported at $69.14 billion.
Cook: "Demand for iPhone was simply staggering"
Apple has replaced the iPhone 16 Plus with the sleek iPhone Air. However, the spot for the second iPhone model remains a challenge for the company. For the base iPhone 17, notable upgrades include a 120Hz ProMotion display, a larger screen size of 6.3 inches, and enhancements to the Ultra-wide camera, now at 48MP. Commenting on these developments, CEO Tim Cook stated to CNBC, "The demand for iPhone was just simply staggering."
"Today, Apple is thrilled to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, which is up 16 percent from a year ago and well above expectations. iPhone saw its best-ever quarter, driven by unprecedented demand with records across all geographic regions. Additionally, our Services sector achieved an all-time revenue high, rising 14 percent year-over-year. We're also excited to share that our installed base now exceeds 2.5 billion active devices, showcasing extraordinary customer satisfaction for our top-tier products and services."
- Tim Cook, CEO Apple
Tablet and Services Performance
Apple iPad sales also exceeded projections, generating $8.60 billion during the fiscal first quarter of 2026. This marked an increase from the estimated $8.13 billion and last year's figure of $8.09 billion in revenue, up by 6.3% year-over-year.
The Services segment, Apple's second-largest revenue source after the iPhone, reported $30.01 billion in revenue, just shy of the forecast of $30.07 billion but still surpassing last year's $26.34 billion for a solid 13.93% annual increase. Conversely, revenue from Wearables, Home, and Accessories saw a small decline from $11.75 billion to $11.49 billion.
Revenue growth was robust across all regions, notably in Greater China where sales surged 37.88% year-over-year to $25.53 billion. In the Americas, sales reached $58.53 billion, an 11.17% rise. European sales saw an increase of 12.65%. Gross profit margin stood at 48.2%, exceeding estimates and surpassing last year's margin of 46.9%.
Chinese Consumers Show High Upgrade Rates
For the fiscal first quarter, Apple posted revenue of $143.78 billion, outperforming estimates and last year’s $124.30 billion. Net profit climbed to $42.1 billion, significantly above last year’s $36.33 billion. Analysts had expected diluted earnings per share of $2.67; however, Apple reported a higher figure of $2.84, compared to $2.40 from the prior year. Moreover, Apple now boasts 2.5 billion active devices, up from 2.35 billion a year ago, a promising sign for its Services revenue.
CEO Cook highlighted that mainland China set a record for iPhone “upgraders,” referring to existing iPhone users exchanging their devices for new models. The region also reported significant growth in new iPhone users from other brands. Cook noted the unexpected lift in China was "much greater than we thought we would see," attributing revenue growth essentially to the iPhone.
Looking Ahead: Fiscal Second Quarter Projections
Following these impressive results, Apple’s shares increased by $1.84 to $258.28 during trading hours, further rising by $1.77 post-earnings announcement to $260.05.
As for future outlooks, Finance chief Kevan Parekh expects fiscal second quarter revenue growth between 13% and 16%, estimating between $107.8 billion and $110.66 billion. Limited iPhone supply may impact second-quarter sales, while Services revenue growth is expected to match the 14% seen in the first quarter.
