iPhone 17 Demand Drives Apple’s Biggest Quarter Yet

Apple has started 2026 on an unusually strong note. The company’s earnings for the first quarter show how much the iPhone 17 series has contributed to Apple having one of its best quarters ever. In its latest earnings call, Apple confirmed a record revenue of $143.8 billion for Q1 2026, which ended on December 27, 2025. While iPhone sales were the biggest factor, Apple’s services business also had its best performance so far. A Record Quarter for Apple’s Overall Business Apple reported that its Q1 revenue was $143.8 billion, a 16 percent increase compared to the same quarter last year. The company also noted a net profit of $42.09 billion, highlighting the strong demand across its product lineup during the holiday season. This growth happened when global smartphone demand has been uneven, making Apple’s performance stand out even more. iPhone 17 Demand Exceeds Expectations The iPhone 17 series, launched in September 2025, seems to have exceeded even Apple’s internal expectations.

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Speaking about the performance, Tim Cook described the response to the device as overwhelming.

“The demand for iPhone was simply staggering, with revenue growing 23% year over year to achieve its biggest quarter in history.”

According to Cook, iPhone sales outperformed estimates for the quarter and helped Apple gain market share in December, pulling ahead of Android rivals in key regions. However, he also hinted that rising RAM prices, driven by growing demand from AI data centers, could put pressure on Apple’s margins going forward.

iPhone Continues to Drive the Bulk of Revenue

The iPhone remained Apple’s biggest revenue generator by a wide margin. The company said the iPhone had its best-ever quarter, with strong demand across every major market.

“iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment.”

Revenue from iPhone sales alone stood at $85.27 billion during the quarter, reinforcing how central the product remains to Apple’s business.

Apple’s Installed Base Reaches a New Milestone

Beyond sales numbers, Apple also highlighted the growth of its ecosystem. Tim Cook confirmed that Apple now has more than 2.5 billion active devices worldwide, a figure he linked directly to customer satisfaction.

“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.”

Services Business Delivers All-Time High Revenue

While the iPhone dominated the quarter, Apple’s services division also delivered a strong performance. Services revenue increased by 14 percent from last year to reach $30.01 billion, with Apple TV and Apple Music being among the services that contributed to the revenue.

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Looking into the future, Apple is expected to expand its services in AI. There are reports that Apple may soon introduce an AI version of Siri, with plans to eventually make it a conversational assistant.