Apple Weathers Component Supply Headwinds to Post All-time Record March Quarter Revenues
- Apple posted record March quarter revenues for 2026, driven by double-digit growth in both hardware and services.
- iPhone reached record first-quarter revenues. Apple’s resilient supply chain, price stability, and strong demand for the iPhone 17 series helped it consolidate market share. iPhone’s market share is expected to increase through 2026 and 2027.
- Mac outperformed the global PC market, driven by the MacBook Neo.
- Apple’s ‘Wearables, Home and Accessories’ unit also grew, driven by growth in Watch, AirPods and Accessories.
Seoul, Beijing, Berlin, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – April 30, 2026
Apple’s revenues in Q1 2026 (Q2 of its financial year) grew 17% YoY, reaching $111 Billion. This was the third consecutive quarter when the company reported revenues upwards of $100 billion, defying the typical post-holiday seasonality. Both hardware (17% YoY) and services (16% YoY) grew in double digits. The hardware revenue set march quarter record while services was an all-time record.
iPhone revenues grew 22% YoY. Commenting on iPhone’s numbers, Principal Analyst Varun Mishra said, “Apple’s supply chain resilience was evident this quarter, as the company remained uniquely insulated from surging component costs. While competitors were forced into reactive price hikes, Apple’s ability to absorb BoM (Bill of Materials) increases allowed price stability, effectively squeezing competition. This price stability, combined with robust global demand for the iPhone 17 series and strong growth in Greater China and emerging markets, helped iPhone consolidate market share and achieve its highest-ever March quarter revenues.”
Apple Revenues by Product Category, CY Q1 2007- CY Q1 2026
Mac also performed well growing 6% YoY, helping Apple outperform the global PC market during the quarter. Associate Director David Naranjo said, “Apple’s entry into a more affordable price segment, especially at a time when the PC industry is facing both demand normalization and cost pressure, has restructured the PC market. While competitors are struggling with ‘shrinkflation’, Apple has moved in the opposite direction and increased its addressable market for creators and students, who can convert to long-term users for Apple with significant customer lifetime value. The ramp-up in production of the MacBook Neo is set to drive even more significant growth in the following quarter.”
iPad revenue and shipments also grew during the quarter, despite a lower number of product launches compared to Q1 2025. The momentum stems from the 2019-2021 demand surge for large-screen mobile devices, spurred by remote work, online education and extended stay at home. The older installed base is transitioning to Apple’s more powerful M-series silicon. At the same time there are first time iPad users especially from emerging markets. The upgrade cycle is likely to continue through 2026. We are not yet seeing any significant cannibalization of iPad by the MacBook Neo.
Within Watch, the momentum from a wider portfolio with the Series 11, Ultra and SE 3 drove growth. Apple is expected to reach its highest first-quarter market share since Q1 2023. The growth of iPhones is also supporting Apple’s Watch segment growth. AirPods also grew driven by improved supply and a higher average selling price (ASP), supported by the AirPods Pro 3.
Commenting on outlook, Research Director Tarun Pathak said, “Securing memory capacity has become critical for survival for most OEMs as prices are expected to continue rising in the June quarter. Apple remains positive on memory supply but is more constrained on the availability of advanced node SoC. Smartphone OEMs are expected to increasingly transfer the BoM rise to end consumers. This also means more Android flagships entering iPhone’s territory, where Apple has a stronger brand power. As a result, we expect Apple’s market share to increase through 2026 and 2027. At the same time, the rising AI-ready installed base is laying a solid foundation for multi-year services growth for Apple.”
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Author
Tarun Pathak
Tarun is a Research Director with Counterpoint Research, based out of Gurgaon (near New Delhi). Tarun has 10 years of work experience with a key focus on the evolving mobile device ecosystem with specialties in Emerging Markets. He understands specific mobile industry nuances, helping clients to navigate through the rapidly changing technological trends. As a Telecom Analyst he has been quoted extensively by the leading media platforms. Tarun holds a Post Graduate Diploma in Management, specializing in International Business from the Amity International Business School and is a graduate in Physical Sciences from Jammu University, Jammu in the northern Indian state of Jammu & Kashmir.
David Naranjo
David Naranjo joined Counterpoint Research as part of its acquisition of DSCC, where he was Senior Director. David has more than 20 years’ experience in the consumer and commercial electronics industry. David’s professional background includes a wide range of responsibilities in product development, product planning, product management, product marketing, data analytics, and executive /operational management. Prior experience includes working in the consumer and commercial electronics industry as Director of Business Line Management at ViewSonic, Director of Product Planning at Samsung Electronics, Director of Connected Products at Kenmore, Director of Product Management at Mitsubishi Digital Electronics and Group Manager at Panasonic. David has a Bachelor of Electrical Engineering and an MBA in Finance and Marketing.
Varun Mishra
Varun is a Principal Analyst at Counterpoint Research based out of Gurgaon. In Counterpoint, he closely tracks mobile devices and ecosystem with a focus on Apple. He started his career as a Consultant with Infosys Limited where he was able to identify strategic avenues for business growth through deep research and analysis of markets and companies in various domains. He holds a Master of Business Administration in Marketing from Institute of Management Technology, Ghaziabad and a bachelor's degree from Coventry University, UK.