Apple Records Strongest iPhone Sales Ever as Mac Revenue Slips
Apple has posted its highest-ever iPhone sales, driven by strong demand for the iPhone 17 lineup during the final quarter of last year, even as other parts of its hardware business faced declines.
The tech giant reported quarterly revenue of $144 billion, a 16% increase compared with the same period a year earlier. It marks Apple’s fastest revenue growth since 2021, supported by rising sales across key markets including China, Europe, the Americas, Japan, and record-breaking performance in India.
Despite the iPhone’s standout performance, other product categories told a different story. Revenue from wearables and accessories—such as Apple Watch and AirPods – fell by about 3%, while Mac computer sales dropped by just over 7%.
Apple CEO Tim Cook said demand for the latest iPhones was so strong that the company is struggling to keep up with supply. Speaking to analysts, he noted that customer interest in the iPhone 17 range exceeded internal forecasts, pushing Apple into what he described as “supply chase mode.”
India emerged as a particularly bright spot, with iPhone sales hitting a new quarterly high in the country.
Questions remain, however, about Apple’s artificial intelligence strategy. Cook declined to elaborate on the company’s newly announced partnership with Google, which will see Google’s Gemini AI technology underpin future Apple AI features and upgrades to Siri.
Industry watchers say Apple’s cautious approach to AI is drawing scrutiny. Anna MacDonald, an investment manager at Aubrey, noted that Apple’s brand is built around polished, seamless user experiences, which may explain its slower rollout compared to rivals. Others argue that Apple’s long-term dominance in smartphones is no longer guaranteed unless it delivers meaningful AI-driven improvements.
Apple plans to invest $16 billion in the coming fiscal year to expand its retail footprint and infrastructure. While this is modest compared with competitors like Microsoft – whose AI-focused spending far exceeds that figure – investors remain divided on whether Apple’s hardware-led strategy will be enough in an increasingly AI-driven market.
Following the earnings release, Apple’s shares fell 10% in Thursday trading, marking the company’s steepest single-day stock drop since 2020.
