Apple’s iPhone Triumph Over AI Setbacks: A Record Quarter with Uncertain Future?
Apple’s iPhone dominance defies AI delays, but can it keep up?
iPhone revenue hit $85.3 billion in Q1 2026, a 23% year-over-year increase. Apple CEO Tim Cook said:
"The demand for iPhone was simply staggering... this is the strongest iPhone lineup we’ve ever had."
The iPhone 17 base model now includes features previously exclusive to 'Pro' devices, such as an always-on display and higher refresh rate screen. However, Apple faces 'constrained' supply due to limited availability of advanced chip manufacturing nodes.
Services revenue rose 14% year-over-year, while Mac and wearable sales declined. Apple acquired AI startup q.ai for $2 billion, with patents suggesting tech for 'facial skin micro movements' in wearables. Apple noted:
"We are partnering with Google to power Siri’s AI upgrades using a custom version of Gemini."
Rumors suggest Apple plans to turn Siri into an AI chatbot and develop an AI-powered web search tool.
