On January 30, Apple released its first quarter financial report for fiscal year 2026 today. Subsequently, Apple CEO Tim Cook and CFO Kevan Parekh attended the conference call to answer questions from analysts. The following is a summary of key points from Apple’s first fiscal quarter earnings report and conference call:

Cook

——Total revenue was US$143.756 billion, an increase of 16% from US$124.300 billion in the same period last year, setting a historical record; net profit was US$42.097 billion, an increase of 16% from US$36.330 billion in the same period last year.

——First fiscal quarter revenue in China was US$25.526 billion, an increase of 38% from US$18.513 billion in the same period last year;

——The number of active Apple device installations has exceeded 2.5 billion.

——Apple expects second-quarter revenue to increase by 13% to 16% year-on-year, with gross profit margins ranging from 48% to 49%.

——Cook said that the demand for iPhone 17 is amazing.

——Cook said that the substantial growth in revenue in China was mainly boosted by the iPhone. "We have achieved the highest number of upgraded users ever recorded in the Chinese mainland market, and at the same time there has been double-digit growth in users switching from other platforms." Cook said. Upgrading users refer to existing iPhone users who purchase new models, while switching users refer to new customers who have previously used mobile phones of other brands. Cook admitted that Apple's "growth momentum far exceeded expectations" in the Chinese market, which was mainly driven by products.

—— Regarding the price increase of memory chips, Cook said that the impact on the gross profit margin in the first fiscal quarter will be "minimal", but he expects to have a "slightly larger impact" on the company's gross profit margin in the current quarter. Cook added that Apple is aware of rising chip prices and will "evaluate a series of long-term response options" if necessary.

—— Regarding the AI ​​cooperation with Google, Cook said that after Apple’s evaluation, it believed that Google can provide the strongest technical foundation for the “Apple Basic Model” (AFM), and believed that this cooperation will unleash a rich user experience. He emphasized that Apple will continue to run related services on the device and Apple's private cloud computing platform and adhere to its privacy standards. Cook also pointed out that the financial details of this cooperation will not be disclosed.

——Cook said,The cooperation with Google should be regarded as a "collaboration", and Apple will continue to independently promote "part of its independent research and development work."He pointed out that the focus of this cooperation with Google is to improve Siri.

——Cook said that both device-side AI and cloud-side AI are important, and Apple does not regard it as an either-or choice.

——Cook said that Apple’s self-developed chips are a very influential change for the company, and iPhone, iPad and Mac have all benefited a lot. He believes this is an important competitive advantage.Apple CFO Parekh said that self-developed chips not only save costs, but also have strategic value.

——As of press time, Apple’s stock price rose 0.7% after hours.