by SONG Jianan

Apple Inc. posted record results for its fiscal first quarter, with a sharp rebound in Greater China emerging as a key growth driver alongside surging iPhone demand.

For the quarter ended Dec. 27, 2025, Apple reported revenue of US$143.76 billion, up 16% from a year earlier and well ahead of market expectations of about US$138.4 billion. Net profit rose 15.9% year on year to US$42.10 billion, while diluted earnings per share climbed 18.3% to US$2.84, also beating forecasts.

While the iPhone remained the company's core engine globally, Greater China stood out as the fastest-growing region. Revenue there jumped 38% year on year to US$25.53 billion, reversing recent weakness and marking one of Apple's strongest regional performances in years.

Chief executive Tim Cook said the company set records for both upgraders and switchers in mainland China, with double-digit growth in users moving over from rival platforms. Strong demand for the iPhone 17 series, combined with government-backed trade-in subsidies, and more localized features, helped drive the rebound, he said.

Globally, iPhone revenue rose 23% to US$85.27 billion, accounting for nearly 60% of Apple’s total sales and delivering what Cook described as the best iPhone quarter in the product’s history.

Services also continued to underpin profitability. Revenue from the segment rose 14% to US$30.01 billion, surpassing the US$30 billion mark for the first time. With a gross margin of 76.5%, services once again far outperformed Apple’s hardware business, which posted a margin of 39.4%.

Other hardware lines were mixed. Mac revenue slipped 6.7% to US$8.39 billion, partly because new MacBook Pro models powered by the M4 chip were launched late in the quarter. Revenue from wearables, home and accessories edged down 2.2% to US$11.49 billion, reflecting intensifying competition and supply constraints for Vision Pro.

iPad sales rose 6.3% to US$8.60 billion, with Apple noting that about half of buyers during the quarter were first-time users, suggesting continued traction among new customers.

On costs, Cook said recent memory chip price increases had only a minimal impact on margins in the quarter, though the effect could become "somewhat larger" in the current period. He said Apple would evaluate longer-term responses should price pressures persist.

Chief financial officer Kevan Parekh said the quarter generated nearly US$54 billion in operating cash flow, allowing Apple to return about US$32 billion to shareholders. The board declared a cash dividend of US$0.26 per share, payable on Feb. 12.

Looking ahead, analysts said attention remains on Apple's artificial intelligence strategy. While the company plans to use Google's Gemini model to support upgrades to Siri, Cook stressed that Apple continues to pursue its own development efforts, describing the partnership as complementary rather than a shift away from in-house work.