New York
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As Big Tech battles for dominance in synthetic intelligence, Apple is flying excessive on the success of the iPhone.
The firm reported earnings that blew previous Wall Street’s expectations on Thursday, largely pushed by the iPhone 17. Revenue hit $143.8 billion for the quarter, up from $124.3 billion a yr in the past. Meanwhile,iPhone income reached $85.3 billion in comparison with analysts’ expectation of $78.2 billion for the quarter.
The outcomes seize the primary full quarter of availability for the iPhone 17, which got here out in September. And the stakes had been excessive: Apple has been broadly perceived as behind in AI, placing extra stress on core merchandise just like the iPhone to succeed.
Apple (AAPL) additionally introduced that there at the moment are 2.5 billion Apple gadgets in use globally. CEO Tim Cook advised analysts on Thursday that the corporate noticed report iPhone upgrades and double-digit development on “switchers,” customers who change from Android to the iPhone. Revenue in China, a market the place Apple has struggled, additionally grew to $25.5 billion for the quarter in comparison with $18.5 billion a yr in the past.
“The demand for iPhone was simply staggering,” Cook mentioned.
The outcomes come after a difficult 2025 for Apple. Last yr, the corporate grappled with tariffs and a high-profile delay of its revamped model of Siri, which Cook mentioned on the decision will arrive this yr. Apple and Google just lately introduced that the search big’s AI and cloud know-how will energy the iPhone maker’s AI fashions, together with the upcoming Siri.
Despite the robust outcomes, Apple nonetheless has hurdles forward. Manufacturers are pivoting assets to creating reminiscence for information facilities slightly than shopper merchandise like smartphones, creating a memory shortage within the tech trade.
The iPhone 17 lineup has been broadly profitable, however demand for the iPhone Air has been muted, in line with information from Consumer Intelligence Research Partners. And whereas the partnership with Google alerts that Apple is making progress in AI, it’ll nonetheless face stress to indicate the way it will use AI in new merchandise.
When requested about when Apple plans to earn cash off AI, Cook mentioned that AI “opens up a range of opportunities” throughout Apple’s “products and services” and that the corporate is “very happy” with its collaboration with Google.