Big Tech

Apple, sales and profits exceed estimates thanks to 'staggering' iPhone demand

According to CEO Tim Cook, demand for the latest smartphone models has been 'staggering', ensuring the company a 16% increase in revenue, to $143.8 billion, a new all-time high

29 January 2026

2' min read

Translated by AI

Versione italiana

2' min read

Translated by AI

Versione italiana

Apple's final quarter 2025 accounts exceeded Wall Street estimates, thanks to strong iPhone demand and a strong recovery in China. CEO Tim Cook told Reuters that demand for the latest smartphone models had been"staggering", giving the company a 16% increase in revenue to $143.8 billion, a new all-time high.

Decisive sales in key markets

Apple's iPhone 17 line-up helped boost sales in key markets, alleviating investor concerns about a hardware sales plateau. The devices were well received for their updated camera features and performance improvements, with Apple also benefiting from a wave of upgrades from users who owned older models.

IPhone revenues rose to $85.27 billion in the fiscal first quarter ended 27 December, well above the $78.65 billion expected by analysts. Apple said iPhone sales hit records in every geographic segment, highlighting widespread demand despite macroeconomic uncertainty.

"The demand for iPhones was simply stunning, with a 23% year-on-year increase in sales leading to the best quarter in history, Cook said in an interview with Reuters.

Quarterly turnover up 16%

According to LSEG, the iPhone maker reported quarterly revenues of $143.8 billion, up 16 per cent year-on-year, exceeding analysts' average estimate of $138.48 billion. Cook said the company now has an installed base of 2.5 billion devices. Earnings per share were $2.84, well above the consensus of $2.67.

Apple reported gross margins of 48.2% in the fiscal first quarter, exceeding both its own forecasts and analysts' expectations of 47.45%, according to LSEG data. The result suggests that the rising costs of DRAM memory chips and raw materials such as gold have not yet affected Apple's results.

In the interview, Cook declined to comment on memory chip pricing, saying the topic would be addressed during the company's quarterly conference call with analysts. Earlier this month, Apple announced its partnership with Alphabet's Google, which integrates Gemini artificial intelligence models into Apple's ecosystem, as part of its broader push to bolster AI capabilities.

iPhone 17, record sales in China

Sales in China increased 38% year-on-year to $25.53 billion, far exceeding Visible Alpha's estimate of $21.32 billion. Apple has faced pressure in China from local competitors and scrutiny from regulators, but Cook said the iPhone has achieved record sales in the country and that the iPhone 17 has led to double-digit growth in the number of users switching from Android devices.

Apple does not disclose sales figures for India, a fast-growing market, but Cook told Reuters that the company has seen 'double-digit' sales growth, with record sales for iPhones, Macs and other products. He also stated that Apple plans to open a shop in Mumbai.

Significantly underperforming Wall Street's expectations was Apple's wearable devices, home products, and accessories segment, where sales came in at $11.49 billion, below expectations of $12.04 billion. Last year, Apple launched a product called AirPods Pro 3 that can translate between different languages, and Cook said demand for the new product caught Apple off guard.

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