Apple’s best-selling iPhone series has been announced

Apple announced its financial results for this quarter of fiscal 2026. The company generated $111.2 billion in revenue in the March period, which corresponds to the first quarter of 2026 according to the calendar year, and achieved its best March quarter ever. Revenue growth reached double digits in all geographic regions and in all product categories. Apple’s quarterly results highlighted the iPhone 17 family, Mac sales, service revenues, memory costs, supply constraints, artificial intelligence investments and management change.

Apple CEO Tim Cook and Apple CFO Kevan Parekh shared important information about the company’s recent performance and the next quarter during the investor meeting. iPhone 17 demand and service revenues were decisive in Apple’s record quarter. One of Apple’s main growth items in the March quarter was iPhone. The company increased its iPhone revenue by 22 percent annually to $57 billion. This figure means a new March quarter record on the iPhone side.

Apple attributed the strong performance to the high demand for new iPhone models. Tim Cook said that the demand for the iPhone 17 family was very high and supply constraints had an impact on revenue. According to Cook, if there were no supply problems, Apple would have announced higher revenues. The main reason for the restrictions was the production capacity of the A19 and A19 Pro chips used in the iPhone 17 series.

These chips come from TSMC’s advanced 3 nm manufacturing process. The same production line is also used for artificial intelligence chips, which are in high demand. Therefore, Apple’s SoC supply became one of the limiting factors during the quarter. Kevan Parekh announced that the iPhone 17 family is the best-selling iPhone series in Apple’s history. Parekh said that the iPhone 17 family has become the company’s most popular product family to date and they think Apple gained market share during the quarter.

Tim Cook also stated that they were very pleased with the way the iPhone 17 series was received by users. The company saw strong demand from both users upgrading from older models and customers buying iPhones for the first time. Another topic that Apple drew attention to in the quarter was memory costs. Tim Cook said that memory costs increased in the March quarter, and this effect will become more evident in the June quarter.

According to Cook, after June, memory costs will put increasing pressure on Apple’s business results. On the Mac side, revenue increased by 6 percent on an annual basis, reaching $8.4 billion. Tim Cook said Mac sales were affected by supply constraints due to higher-than-expected demand. The MacBook Neo, introduced during the quarter, attracted strong interest and was out of stock. Delivery times for new machines have sometimes extended up to a few weeks.

Apple also saw high demand on the Mac mini and Mac Studio side. The company stated that these models are especially preferred by users working with artificial intelligence and agent-based tools. Cook said that Mac mini and Mac Studio are powerful platforms for artificial intelligence and agentic tools, and that customers realized this faster than expected, and therefore demand exceeded expectations. He also stated that it will take months to reach supply-demand balance for Mac Studio and Mac mini.

This statement shows that stock shortages in both models will continue in the short term. The company also stated that supply constraints on the Mac side will continue in the June quarter. The reason for this was explained as both high demand and lower flexibility in the supply chain. Mac sales were affected not only by the upgrade demand of existing users, but also by customers who newly switched to Mac. Apple broke records in the March quarter for both new customers switching to Mac and users renewing their devices.

This chart also pushed the total Mac installed device base to an all-time high. Apple focuses especially on customers who have been using older Mac models for a long time and those who are new to the Mac ecosystem. It was stated that MacBook Neo achieved strong sales in these two groups. On the management side, the new era for Apple has officially begun to be discussed. Tim Cook made a statement about John Ternus, who will take over as Apple CEO on September 1, 2026.

Cook described Ternus as the person he trusts most to lead Apple’s future. He said that Ternus is a strong engineer, a deep-thinking manager, a strong character and a natural leader. John Ternus also spoke at the investor meeting and touched upon Apple’s upcoming product roadmap. Although Ternus did not give details, he said that they were in the most exciting time to develop products and services in the 25 years he spent at Apple.

He stated that there are many opportunities ahead of them and that he is optimistic for future work. On the wearable products side, revenue increased to 7.9 billion dollars. A 5 percent increase was recorded in this item on an annual basis. Apple’s wearable device installed base has reached an all-time high. More than half of the customers who purchased Apple Watch during the quarter were users who bought this product for the first time.

The services division continued to be one of Apple’s strongest revenue items. The company reached an all-time high of $31 billion in services revenue. Apple’s active device installed base also exceeded 2.5 billion. This figure represents a new record in all major product categories. The number of trading accounts and paid accounts during the quarter also reached an all-time high. On the retail side, the March quarter record was also achieved.

Apple announced that it saw very high visitor traffic in its stores throughout the quarter and that the March quarter record was broken in retail revenues. Artificial intelligence was one of the prominent topics in the investor meeting. Kevan Parekh said that artificial intelligence is an important investment area for Apple. The company will continue to make additional investments in artificial intelligence on top of the investments it normally makes in its product roadmap.

Apple’s R&D spending accelerated during the quarter. Tim Cook stated that Apple sees opportunities in both products and services. Speaking about the cooperation with Google, Cook said that the process is going well. He stated that he was satisfied with Apple’s work both with Google and the work it did independently. On the tariff side, Apple saw a lower impact from the previous quarter to the second quarter. This was due to the reduction of tariff rates under IEEPA and the reduction of the global tariff rate under Section 122.

Tim Cook said that he followed the refund application processes for the tariffs paid by Apple. The company will transfer the recovered amounts to innovation and advanced production investments in the USA. These investments will be in addition to Apple’s previously announced commitments for the USA. Apple also gave growth expectations for the June quarter. Kevan Parekh announced that they expect total revenue to increase between 14 percent and 17 percent on an annual basis.

Service revenues are expected to reach a growth rate similar to the March quarter. The company warned investors about iPad revenues. Parekh said the comparison will be tougher this year due to the launch of the A16 processor-powered iPad last year. Apple’s June quarter expectations are based on global tariff rates and policies remaining at current levels.