Apple just had a record-breaking iPhone quarter
Apple says the iPhone had its “best quarter ever,” with revenue reaching more than $85.3 billion over the past few months. The company announced the news as part of its first-quarter 2026 earnings report, which also revealed record revenue of $143.8 billion, up 16% from the same period last year.
“The demand for the iPhone was nothing short of staggering, with revenue growing 23% year over year,” Apple CEO Tim Cook said on a call with investors. “This is the most successful iPhone lineup we’ve ever had, and by far the most popular.”
“High levels” of demand for the iPhone 17 have led to “limited” supply, according to Cook. He adds that the company is “seeing less flexibility in the supply chain” when it comes to the availability of the advanced process nodes it uses to build the device’s chip. Meanwhile, Apple’s services revenue, which includes subscriptions like Apple Music, iCloud and Apple TV, jumped 14% year over year, while revenue from Macs and wearables was down.
In the coming months, Apple will bring promised AI-based personalization features to Siri. Apple is partnering with Google to power this upgrade, which will use a customized version of Google’s Gemini AI model.
The company is also acquiring an AI startup, called Q.ai, for $2 billion, according to the Financial Times. While there are no details on how Apple plans to use the startup’s technology, the Financial Times reports that Q.ai’s patents “show its technology being used in headphones or glasses, using “micro-movements of facial skin” to communicate without speaking.
