Apple 1Q26 Earnings Review: People Want What Apple Is Selling
Hello everyone.
Welcome to a special Friday edition of the Above Avalon Daily. It’s been a busy week. For today’s update, I wanted to share the big picture takeaway from Apple’s earnings and how results compared to my estimates. There is plenty more to discuss. We will do that next week.
Have a great weekend.
Apple 1Q26 Earnings Review: People Want What Apple Is Selling
The theme to our Apple 1Q26 earnings preview was divergence. Wall Street had turned skeptical of Apple just as the company’s business fundamentals were entering a higher gear. Apple’s 1Q26 results validated that theme. Apple reported its best quarter in four years. To then have Apple’s very strong 1Q26 results be constrained by supply tells us that demand is improving even faster than what is implied by the numbers. While the iPhone deservedly is getting much of the attention – revenue up 23% - the entire Apple ecosystem is seeing improved demand. People want what Apple is selling.
We have spent the past 18 to 24 months talking about how Apple product demand was beginning
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