Apple says the iPhone had its “best quarter ever,” with revenue reaching more than $85.3 billion in recent months. He the company announced the news as part of its first-quarter 2026 earnings report, which also revealed record revenue of $143.8 billion, an increase of 16 percent compared to the same period last year.
“iPhone demand was simply staggering, with revenue growing 23 percent year over year,” says Apple CEO Tim Cook during a call with investors. “This is the strongest iPhone lineup we’ve ever had and by far the most popular.”
“High levels” of demand for the iPhone 17 have led to “constrained” 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, rose 14 percent year over year, while revenue from Macs and wearables declined.
In the coming months, Apple will bring the promised AI-powered personalization features to Siri. Apple is partnering with Google to power this update, which will use a customized version of Google’s Gemini AI model.
The company is also acquiring an AI startup, called Q.aifor 2 billion dollars, according to the Financial times. Although 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 is used in headphones or glasses, using ‘micro-movements of facial skin’ to communicate without speaking.”
