Benefiting from strong demand for the iPhone 17 series, coupled with a recovery in the Chinese market and boosted service revenue, Apple announced today (January 30th)...Fiscal Year 2026 First Quarter Financial Report (As of December 27, 2025) delivered an amazing report card.
Apple's financial report shows that revenue reached $1437.6 billion in the last quarter, a 16% increase compared to the same period last year, setting a new record for a single quarter. Net profit reached $421 billion, a 19% increase compared to the same period last year. Among them, revenue from the iPhone product line grew to a record high of $852.7 billion, showing that even if the price of high-end models exceeds $1000, consumers are still willing to pay.
iPhone 17 sales are booming, with a strong rebound in the Chinese market.
During the earnings call, Apple CEO Tim Cook pointed out that the demand for iPhones was simply astonishing, further demonstrating that the iPhone 17 series has become the most popular iPhone model to date, driving revenue growth in all regions around the world.
It is worth noting that the previously sluggish Chinese market experienced explosive growth in the last quarter, with revenue reaching $255.2 billion, a 38% increase compared to the same period last year, demonstrating the effectiveness of Apple's brand appeal and promotional strategies in the region.
In addition, service revenue reached a new high of $300 billion, a 14% increase compared to the same period last year, continuing to be Apple's second source of profit. However, Mac and wearable device revenues saw slight declines of 7% and 2%, respectively.
Key Questions and Answers: Memory Costs and AI Deployment
During the Q&A session following the earnings call, Tim Cook addressed concerns about potential cost increases due to memory shortages reported by the supply chain. He acknowledged that they have indeed observed a tight supply of memory components, which could put some pressure on product cost structures in the short term. While Apple possesses strong bargaining power with its supply chain, if this trend continues, it could potentially be reflected in the pricing strategies or gross margin fluctuations of some products.
Another focus of the conference was the collaboration between Apple and Google in the field of AI.
Tim Cook explained that Apple chosePartnering with GoogleThis is because the assessment is that Google's AI technology can provide the most powerful foundational capabilities for "Apple Foundation Models".
Regarding privacy concerns, Tim Cook emphasized that Apple's AI operating logic still prioritizes "on-device computing." When more powerful computing is needed to handle complex tasks (such as more personalized Siri interactions), Google's Gemini model is executed through a "Private Cloud Compute" architecture.
This means that user data is still protected by Apple's privacy policy when processed in the cloud and will not be used to train Google's models.
Tim Cook also reiterated that this is a "collaborative" relationship, and Apple will continue to promote and optimize its own AI models in parallel with third-party models to provide the best user experience.
