Tim Cook: Demand for iPhone simply staggering during fiscal first quarter
Apple saw iPhone sales soar sharply during the fiscal first quarter.
We've seen signs that the iPhone 17 series (except for the iPhone Air) has generated a tremendous response from consumers and this was confirmed today when Apple reported $85.27 billion in iPhone sales during the fiscal first quarter far surpassing estimates of $78.65 billion from Wall Street analysts. Thanks to the strength of sales of the iPhone 17 line, iPhone sales surged 23% year-over-year. During fiscal Q1 of 2025, iPhone sales amounted to $69.14 billion.
Cook: "Demand for iPhone was just simply staggering"
Apple replaced the iPhone 16 Plus with the ultra-thin Phone Air, but whatever ails that second iPhone slot, the one after the base model, it continues to be a problem for the company. Speaking of the base iPhone 17, Apple did give it a 120Hz ProMotion display, increased the size of the screen to 6.3 inches, and upgraded the Ultra-wide camera to 48MP. Apple CEO Tim Cook told CNBC, "The demand for iPhone was just simply staggering."
"Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16 percent from a year ago and well above our expectations. iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14 percent from a year ago. We are also excited to announce that our installed base now has more than 2.5 billion active devices, which is a testament to incredible customer satisfaction for the very best products and services in the world."
-Tim Cook, CEO Apple
Apple iPad sales also topped estimates as the tech giant's tablet collected $8.60 billion in sales during the fiscal first quarter of 2026 compared to estimates of $8.13 billion and last year's Q1 tally of $8.09 billion in revenue. Year-over-year, iPad sales rose 6.3% in fiscal Q1.
Apple's second largest business segment enjoyed a strong quarter
The Services sector, Apple's second largest business segment after the iPhone, had $30.01 billion in revenue, which didn't meet forecasts for sales of $30.07 billion. It did beat the $26.34 billion in revenue for Services collected by Apple last year and delivered a strong 13.93% annual increase. Wearables, Home, and Accessories revenue declined on an annual basis from $11.75 billion to $11.49 billion, a small 2.21% decline. Sales also failed to reach Wall Street expectations of $12.04 billion.
Sales rose sharply in all regions, especially Greater China where revenue soared 37.88% on a year-over-year basis to $25.53 billion. In the Americas, sales hit $58.53 billion, up 11.17%. European sales rose 12.65% from the first fiscal quarter of 2025 to the first fiscal quarter of 2026. Sales in Japan and the remainder of Asia Pacific were up 4.74% and 18% respectively. Gross profit margin was 48.2%, topping estimates and last year's 46.9%.
Chinese consumers set a record for the number of iPhone "upgraders"
For the fiscal first quarter, Apple generated revenue of $143.78 billion which beat estimates and last year's $124.30 billion. Net profit of $42.1 billion was higher than the $36.33 billion reported by Apple for last year's fiscal first quarter. Diluted earnings per share came in at $2.84. Analysts expected $2.67 and last year's figure was $2.40. Apple now has 2.5 billion active devices in use, up from 2.35 billion at this time last year. That is good news for Apple's Services business which generates higher revenue when there are more active devices to purchase apps and subscriptions for.
CEO Cook said that in mainland China, Apple set a record for the number of iPhone upgraders. These are current iPhone owners who purchased one of the new models. The region also had double-digit growth in the number of new iPhone users who switched from another brand. Cook said that in China, Apple "saw a lift that, frankly, was much greater than we thought we would see." The CEO of Apple since August 2011, Cook said that the iPhone was the reason for the increase in revenue in China as he called the increase "product driven."
What to expect for the fiscal second quarter
Apple's shares had risen $1.84 to $258.28 during regular trading hours. After the releasee of the earnings, Apple tacked on another $1.77 to $260.05.
Looking ahead, Finance chief Kevan Parekh expects fiscal second quarter revenue to rise between 13% and 16% to a range between $107.8 billion and $110.66 billion. Apple expects limited iPhone supply for the fiscal second quarter and Services revenue should match the 14% reported for the fiscal first quarter.
All iPhone users are eagerly awaiting the iOS 26.4 release (with the beta coming as soon as next month) when we get to see the AI-infused version of Siri. Apple has already reached an agreement with Google to have its Gemini AI model power the revised Siri. "We have absolutely the best platforms in the world for AI," Tim Cook said today.
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