Apple opened fiscal year 2026 with its strongest quarter on record, delivering revenue of approximately € 132.3 billion and exceeding analyst expectations across all major indicators. The result marked a clear step change from the previous record quarter in late 2024, when revenue reached roughly € 114.4 billion. Profit followed the same trajectory, rising to an all-time high of about € 38.7 billion for the three months ending December 27, 2025. For the global secondary mobile market, the scale and composition of this performance matter as much as the headline numbers. According to Peter C. Evans Apple generates an estimated € 1.4 to € 1.8 billion annually directly from certified refurbished sales, with secondary devices driving more than € 9 billion in high-margin services (74% gross margin) revenue.
Apple iPhone drives growth engine
Apple iPhone sales surged 23% year over year to an estimated € 78.2 billion, representing the largest single contributor to overall growth. This performance confirmed the strength of the current upgrade cycle and reinforced the central role of the iPhone installed base in Apple’s ecosystem strategy. Combined Mac, iPad, Home and Wearables revenue softened slightly to around € 26.2 billion, underscoring how dependent Apple’s growth narrative has become on smartphones and their extended lifecycle.
Services scale with installed base
Services revenue reached approximately € 27.6 billion, growing 14% year over year and crossing a strategic maturity threshold. At this scale, Services now generate annualised revenue exceeding that of many global hardware manufacturers. Apple has confirmed that users of used and refurbished Apple iPhone devices consume paid services at levels comparable to buyers of new hardware, validating the economic relevance of secondary ownership. According to research from Peter D. Evans
Secondary market strategic leverage
For Apple, every refurbished Apple iPhone placed back into circulation represents an incremental services customer and a defensive move against Android substitution. For the secondary industry, this alignment strengthens the long-term legitimacy of refurbishment, grading, and resale channels. The data indicates that secondary flows do not dilute platform value but instead extend monetisation across longer device lifecycles, directly supporting circular economy outcomes.
Geographic rebound and risks
Apple reported revenue growth across all regions, with Greater China leading at nearly 38%. This turnaround followed multiple quarters of decline and highlighted renewed momentum in a market where refurbished Apple iPhone devices play an important affordability role. Looking ahead, Apple cautioned that memory chip shortages linked to AI driven data center expansion could pressure margins, even as Services continue to offset hardware volatility.
Implications for circular maturity
As Services margins reached 76.5% compared with 40.7% for products, Apple’s financial structure increasingly rewards lifecycle extension over pure unit sales. For the global secondary mobile ecosystem, this quarter reinforced a critical message: refurbished devices are no longer peripheral but structurally embedded in platform growth, profitability, and sustainability strategy.
Market
Trade-in
Repair
Refurbishing
