Apple’s iPhone Achieves Unprecedented $85 Billion in Holiday Quarter Sales
Apple has reported a record-breaking fiscal first quarter for 2026, ending December 27, 2025, with total revenue reaching $143.8 billion—a 16% increase from the previous year. This remarkable performance was primarily driven by unprecedented iPhone sales, which soared to $85.3 billion, marking a 23% year-over-year growth and setting a new all-time high for the product line.
Unprecedented iPhone Demand
The iPhone’s exceptional performance was fueled by the latest iPhone 17 series, which garnered significant consumer interest across all geographic segments. Apple CEO Tim Cook highlighted the device’s success, stating, iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment. ([apple.com](https://www.apple.com/gq/newsroom/2026/01/apple-reports-first-quarter-results/?utm_source=openai))
Geographic Sales Breakdown
Apple’s revenue growth was robust across various regions, with notable increases in Greater China:
– Americas: $58.5 billion (up from $52.6 billion)
– Europe: $38.1 billion (up from $33.9 billion)
– Greater China: $25.5 billion (up from $18.5 billion)
– Japan: $9.4 billion (up from $9.0 billion)
– Rest of Asia Pacific: $12.1 billion (up from $10.3 billion)
The significant 38% increase in Greater China underscores the iPhone’s growing popularity in that market. ([elpais.com](https://elpais.com/economia/2026-01-29/apple-pulveriza-sus-cifras-de-ventas-gracias-al-exito-del-iphone-en-china.html?utm_source=openai))
Services and Other Product Lines
In addition to iPhone sales, Apple’s Services division achieved a new all-time revenue record of $30.0 billion, a 14% increase from the previous year. This growth was supported by record engagement in advertising, cloud services, and payment platforms, as Apple’s total active installed base reached a milestone of 2.5 billion devices. ([news.alphastreet.com](https://news.alphastreet.com/apple-posts-record-143-8-billion-revenue-for-q1-2026-as-iphone-sales-surge/?utm_source=openai))
Other product lines experienced mixed results:
– iPad: $8.6 billion (up from $8.1 billion)
– Mac: $8.4 billion (down from $8.9 billion)
– Wearables, Home, and Accessories: $11.5 billion (down from $11.7 billion)
The decline in Mac sales is attributed to a limited number of new releases during the quarter, while the slight decrease in Wearables, Home, and Accessories revenue reflects market saturation and increased competition. ([appleinsider.com](https://appleinsider.com/articles/26/01/29/apple-blows-away-wall-street-expectations-with-record-1438-billion-quarter?utm_source=openai))
Financial Highlights
Apple’s strong performance translated into a net income of $42.1 billion, or $2.84 per diluted share, representing a 16% increase from the previous year. The company’s gross margin improved to 48.2%, up from 46.9% in the year-ago quarter. Apple’s board of directors declared a quarterly dividend payment of $0.26 per share, payable on February 12 to shareholders of record as of February 9. ([mactrast.com](https://www.mactrast.com/2026/01/apples-best-ever-q1-2026-results-42-1b-profit-on-143-8b-revenue/?utm_source=openai))
Artificial Intelligence and Future Outlook
Despite initial delays in implementing artificial intelligence (AI) upgrades to Siri, Apple is now integrating Google’s Gemini 3 AI model to enhance Siri’s capabilities. Tim Cook emphasized the company’s commitment to AI, predicting that the iPhone will evolve into a leading AI platform. ([apnews.com](https://apnews.com/article/d977caff8c186aa012570bc28e5caca2?utm_source=openai))
Looking ahead, Apple forecasts over 13% revenue growth for the January-March period but faces challenges such as rising memory chip costs due to AI-driven demand. This could impact iPhone production and potentially lead to higher product prices to preserve margins. ([apnews.com](https://apnews.com/article/d977caff8c186aa012570bc28e5caca2?utm_source=openai))
Conclusion
Apple’s record-breaking quarter underscores the enduring appeal of the iPhone and the company’s ability to innovate and adapt to market demands. With a strong product lineup and strategic investments in AI, Apple is well-positioned to maintain its leadership in the technology sector.
