iPhone Drives Record Revenue for Apple
Apple reported a surge in sales for the final three months of 2025, with iPhone sales hitting an all-time high. Revenue soared to $144 billion (£82.5 billion), driven by strong sales across China, Europe, the Americas, and Japan. The iPhone’s success was a key contributor to the company’s overall performance during the quarter.
Challenges in Other Business Segments
However, not all parts of Apple’s business saw positive results. Sales in wearables and accessories, which include products like the Apple Watch and AirPods, dropped by approximately 3%. Mac computer sales also experienced a decline of over 7%. Despite these setbacks, the boost from iPhone sales helped Apple maintain growth.
Cook Discusses Supply Constraints and Strong Demand
Apple CEO Tim Cook stated that the company is in “supply chase mode” to keep up with the high level of demand for the iPhone. “We’re currently constrained,” Cook told analysts during a financial call. He also mentioned that the iPhone 17’s demand had “exceeded our expectations,” with a record number of sales in India during the quarter.
Partnership with Google Focuses on AI and Siri Upgrades
Cook refrained from providing further details about Apple’s recently announced partnership with Google. Under this deal, Google’s Gemini AI product will serve as the foundation for future Apple AI models and updates to Siri. While the partnership is seen as crucial for Siri’s development, Jacob Bourne, an analyst at Emarketer, noted that Apple must leverage it to make Siri “relevant, seamless, and monetizable.”
Apple’s Investment Plans for Future Growth
Apple plans to invest $16 billion in the coming fiscal year to further develop its business, including expanding retail stores and enhancing infrastructure. This investment is significantly lower compared to Microsoft’s recent spending on AI, which topped $37 billion in its latest quarter. Despite this, Wall Street investors have expressed concerns about Microsoft’s AI spending and the lack of comparable growth in revenue.
Stock Drop Following Quarterly Results
Despite strong revenue figures, Apple’s stock dropped by 10% following the company’s quarterly results announcement, marking its largest single-day decline since 2020.
Featured image credits: Pexels
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