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Apple earnings beat driven by 'unprecedented' iPhone demand, but stock volatileApple's earnings revival this quarter was led by China, an important market for the iPhone manufacturer. CEO Tim Cook went on to acknowledge that even they did not anticipate the kind of surge seen in iPhone demand in that geography.By Hormaz Fatakia   January 30, 2026, 4:09:29 AM IST (Published)2 Min ReadiPhone manufacturer Apple Inc. reported results for the first quarter of fiscal 2026 that surpassed expectations across parameters led by an "unprecedented demand" for its flagship iPhones. The results were declared after market closing hours on Thursday. However, the stock has seen a muted reaction to the results.

Apple reported sales of $143.76 billion for the first quarter, well above expectations of $138.48 billion. Its Earnings per Share (EPS) at $2.84, was also higher than the $2.67 estimated by analysts.

The sale of Apple's iPhone stood at $85.27 billion, compared to the $78.65 billion that analysts were expecting. Gross margins at 48.2% also beat the 47.5% expectation. Overall iPhone sales were up 23% from last year, led by the recently released iPhone 17.

CEO Tim Cook told CNBC that the "demand for iPhones was just simply staggering!" The company did not provide any guidance for the upcoming quarters.

Apple's sales in greater China, which includes Taiwan and Hong Kong, increased by 38% from last year to $25.5 billion, also led by iPhone sales.

“We set an all-time record for upgraders in mainland China, and we saw double digit growth on switchers,” Cook said. Upgraders refers to current iPhone users who bought newer models, and switchers means new customers who previously had phones from different brands. The Apple CEO went on to add that the lift in China was higher than what the company had envisaged.

Apple spent $2.37 billion in capex during the quarter, down from last year, but R&D expenses rose to $10.89 billion from $8.27 billion last year. CFO Kevan Parekh said that AI would need more incremental investment in addition to the normal product roadmap investment.

Shares of Apple have not seen a significant move in extended trading, still up 0.7%, having ended higher by a similar quantum in regular trading as well. The stock has risen over 22% in the last six months, surpassing $4 trillion in market capitalization as well.

(With Inputs From Agencies)Continue ReadingTagsAppleApple CEO Tim Cookapple earningsApple iPhoneApple resultsApple share price