The world's most valuable listed company said it sold 78.3 million units between October and December - a 5% increase on the same period in 2015.
It said the total represented a new record for quarterly iPhone sales - helping it to achieve the best revenue performance for a three-month period to $78.4bn (£62.3bn).
The so-called holiday season is the most important for Apple - taking in Thanksgiving, Black Friday and Christmas with the fourth quarter numbers following a traditional pattern of product launches in September.
The revenue feat helped cheer investors, with shares rising more than 6% in Wednesday trading, but the results statement still highlighted the extent to which Apple is relying on iPhones to drive sales at a time when global demand for smartphones is slowing and cheaper Android alternatives from China are flooding the market.
While Apple pointed to record performances from services, which includes the App Store, Mac and Apple Watch, it was more cautious on the future largely because of the strong US dollar.
Apple has been among firms raising the prices of products in the UK to reflect the currency's jump, of up to 20% versus the pound, since the Brexit vote. App Store costs were the latest to be increased.
That said, the performance of the iPhone in the final quarter was enough to help Apple reclaim the title as the world's top smartphone seller as sales beat Samsung's 77.5 million in the same quarter.
Tech data firm Strategy Analytics said it was the first time Apple had held the crown since 2011.
The iPhone 7 is almost certain to have benefited from the calamitous failure of Samsung's Galaxy Note 7, which was withdrawn from sale because of fire risk.
Apple's 10th-anniversary iPhone, expected in September, is expected to feature better touchscreen technology, wireless charging and a shift to a higher-resolution OLED display.
Chief executive Tim Cook told investors he was "very excited" about products in the pipeline - adding that he was hopeful Apple would be able to repatriate billions of dollars held offshore to help drive innovation.
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