In its fiscal first quarter, Apple achieved revenue of $143.8 billion, a 16 percent increase year-over-year, driven by robust demand for the iPhone 16e and 17 series. Net income rose to $42.1 billion, up from $36.3 billion in the same quarter a year earlier, setting a new all-time EPS high with 19 percent growth. Services revenue also reached an all-time quarterly record, climbing 14 percent as App Store, cloud and subscription offerings continued their rapid expansion.

Global iPhone shipments increased by just over 6 percent year-over-year, with approximately 4 million units delivered in calendar 2025, according to industry data. Design wins and promotional postpaid bundles at major carriers helped Apple capture 69 percent of the U.S. smartphone market in Q4, up from 65 percent a year earlier. The mid-range segment ($300-$600) grew 27 percent, underscoring continued consumer preference for models that balance price and performance.

Apple exited December with very lean channel inventory, entering a ‘supply chase mode’ to meet elevated customer demand. CEO Tim Cook warned that rising memory prices will have a more pronounced impact in the March quarter, though he expects to manage through these constraints by prioritizing production of its top three devices, including its first foldable iPhone. Investors will be watching inventory levels and gross margin trends closely to assess when supply and demand will realign and support sustained revenue momentum.