Apple has reported a blockbuster start to its financial year, despite the lukewarm reception to iPhone Air and iOS 26 over the past months.
In its Q1 2026 results, Apple reported revenue of $143.8 billion, up 16% year on year. The standout performer was the iPhone, which had its best quarter ever following the launch of the iPhone 17 range, with strong sales across every major region.
Rumors of poor iPhone Air sales and patchy iOS 26 adoption have been doing the rounds, so Apple being able to point to record iPhone revenue is a useful reminder that its core business remains extremely healthy. As CEO Tim Cook put it, demand has been so strong that Apple is currently struggling to make enough phones to keep up.
Not everything grew, though. Mac revenue fell by just over 7% and wearables were also slightly down. Apple didn’t make a big deal of this – sales tend to ebb and flow depending on where we are in the release cycle, and there hasn’t been a major new Mac launch to drive upgrades in recent months.
One area that continues to grow is Services. Apple said this part of the business hit another all-time revenue record, extending a trend that’s been building for years. Subscriptions, app sales, and digital services are increasingly central to Apple’s long-term plans, and that’s unlikely to stop any time soon – as the recent release of Apple Creator Studio shows.
That also explains why Apple can afford to be patient elsewhere. While rivals are pouring huge sums into AI, Apple is moving more cautiously – including leaning on Google’s Gemini models to bolster Siri in the near term, rather than rushing out unfinished features. Better late than never, eh?