'Best iPhone Quarter In History': Tim Cook Says Apple's China Revenue Soared 38% On iPhone 17 Demand

On Thursday, Apple Inc. (NASDAQ:AAPL) reported a 38% year-over-year surge in revenue from Greater China for the first quarter of fiscal 2026, fueled by record-breaking iPhone sales and strong customer engagement.

iPhone 17 Powers Record Quarter In China

During the earnings call, Apple CEO Tim Cook said the December quarter marked "the best iPhone quarter in history in Greater China," driven by strong consumer enthusiasm for the flagship iPhone 17 lineup.

Store traffic in China rose by strong double digits year over year, reflecting renewed momentum in a market that has recently been a concern for investors.

"It was a terrific quarter," Cook said. "Our installed base reached an all-time high in both Greater China and mainland China."

Upgraders, Switchers Hit All-Time Highs

Apple also saw record levels of customers upgrading their devices, along with strong double-digit growth in users switching from competing platforms, said Cook.

He cited data from Worldpanel, iPhones ranked among the top three smartphones in urban China during the quarter.

Macs, iPads Gain Ground With New Users

Beyond the iPhone, Apple said demand for other products in China also showed healthy trends. Cook noted that most Mac and Apple Watch buyers in the region were new to those product categories, signaling room for further expansion.

He also said that market research firm Counterpoint found the MacBook Air was the top-selling laptop model in China in December, while the Mac mini led desktop sales.

The iPad was also the top tablet model in urban China, according to Worldpanel.

Tim Cook Says, ‘We Could Not Be Happier'

Summing up the quarter, Cook struck an upbeat tone on Apple's China performance.

"Overall, great quarter in China," he said. "We could not be happier with it."

Apple Beats Q1 Estimates As Revenue Jumps 16%

Apple posted fiscal first-quarter revenue of $143.76 billion, topping Wall Street expectations of $138.42 billion, while earnings came in at $2.84 per share, well above the $2.66 per share analysts had forecast, according to Benzinga Pro.

The company's revenue rose 16% from a year earlier, and earnings per share increased 19% year over year.

iPhone revenue totaled $85.27 billion for the quarter, up sharply from $69.14 billion in the same period last year.

Price Action: Apple shares closed Thursday at $258.28 up 0.72% and continued to climb in after-hours trading, rising another 0.54% to $259.68, according to Benzinga Pro.

Apple shares rank poorly on value in Benzinga's Edge Stock Rankings, showing a positive long-term price trend but weakness across the short and medium-term time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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