Apple has reported a strong fiscal first quarter, posting a 23% year-over-year increase in iPhone sales. The performance follows the iPhone 16 becoming the world’s best-selling smartphone of 2025.
Chief Executive Officer Tim Cook said Apple generated $85.27 billion in iPhone revenue during the quarter. He described demand as exceptionally strong across key markets.
Despite high demand, Apple faces supply constraints. Cook said the company does not have enough application processors built on TSMC’s 3-nanometre process.
These chips power Apple’s A-series processors. Cook said Apple is working aggressively to secure additional supply. He did not offer guidance beyond March, according to PhoneArena.
$AAPL Q1 2026
"iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment" – Tim Cook
Revenue +16%
*iPhone +23%
*Mac -7%
*iPad +6%
*Wearables, Home. -2%
*Services +14%
*Americas +11%
*Europe 13%
*Greater China +38%… pic.twitter.com/zIZEUPdv6l
— Quartr (@Quartr_App) January 29, 2026Apple Revenue Outlook
Apple’s Chief Financial Officer Kevan Parekh told analysts that total revenue for the current quarter could rise between 13% and 16% year over year. The forecast reflects continued strength in hardware demand.
Read: iPhone 16 Tops Global Smartphone Sales in 2025
Cook also flagged pressure in the memory chip market. He said demand from AI data centres has tightened supply and pushed prices higher.
"I am proud to say that we just had a quarter for the record books," $AAPL CEO Tim Cook says in the Q1 earnings call.
Adding: "The demand for iPhone was simply staggering, with revenue growing 23% year over year." pic.twitter.com/0CLiTiareS
— Yahoo Finance (@YahooFinance) January 29, 2026Cook acknowledged that higher memory costs could affect margins. He said Apple is exploring multiple options to manage pricing and supply challenges.
Despite the constraints, Apple expects demand for iPhones to remain strong. Analysts say resolving chip shortages will remain a key factor for sustaining momentum in the coming quarters.
