Apple has reported another record-breaking quarter, posting $143.8 billion in revenue for its fiscal Q1 2026, up 16% year-on-year.
iPhone led the surge, delivering its best-ever quarter with all-time records across every region. Services revenue also set a new record, rising 14%. Apple’s installed base has now surpassed 2.5 billion active devices.
“Today, Apple is proud to report a remarkable, record-breaking quarter, with revenue of $143.8 billion, up 16% from a year ago and well above our expectations,” said Tim Cook, Apple’s CEO. “iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14% from a year ago. We are also excited to announce that our installed base now has more than 2.5 billion active devices, which is a testament to incredible customer satisfaction for the very best products and services in the world.”
But beneath the strong numbers, Apple acknowledged supply pressures that could have lifted results even further. It was noted that the company “could have sold more” if it had access to enough chips – particularly advanced-node silicon used in its A-series and M-series processors.
The warning comes as the broader semiconductor industry shifts manufacturing capacity toward AI-focused components such as high-bandwidth memory. This strategic reallocation has tightened availability of legacy and mid-range memory chips relied on by smartphones and consumer electronics.
Industry concern spiked after SMIC Co-CEO Zhao Haijun cautioned that customers were holding back 2026 orders due to uncertainty over memory chip availability. Analysts say the imbalance stems from sustained demand for AI infrastructure, which continues to divert manufacturing resources away from consumer-device components.
While Cook downplayed the immediate impact on Apple, he acknowledged the company is monitoring rising memory prices and exploring options.
Perhaps in a move to secure more predictable supply, Apple has deepened its partnership with GlobalFoundries, supporting expanded manufacturing capacity at the company’s New York facility for power-efficient, AI-enabling technologies.
For now, Apple’s growth shows no signs of slowing. But as AI reshapes the semiconductor landscape, the availability of key components – not demand – may be what ultimately determines how fast the company can scale.
