Apple says the iPhone had its โbest-everโ quarter, with revenue hitting more than $85.3 billion over the past few months. The company announced the news as part of its Q1 2026 earnings report, which also revealed record-breaking revenue of $143.8 billion, up 16 percent when compared to the same time last year.
โThe demand for iPhone was simply staggering, with revenue growing 23 percent year over year,โ Apple CEO Tim Cook says during a call with investors. โThis is the strongest iPhone lineup weโve ever had, and by far the most popular.โ
The โhigh levelsโ of demand for the iPhone 17 have led to a โconstrainedโ supply, according to Cook. He adds that the company is โseeing less flexibility in the supply chainโ when it comes to the availability of the advanced process nodes that it uses to build the deviceโs chip. Meanwhile, Appleโs services revenue, which includes subscriptions like Apple Music, iCloud, and Apple TV, surged 14 percent year over year, while Mac and wearable revenue were down.
In the coming months, Apple will bring promised AI-powered personalization features to Siri. Apple is partnering with Google to power this upgrade, which will use a custom version of Googleโs Gemini AI model.
The company is also acquiring an AI startup, called Q.ai, for $2 billion, according to the Financial Times. Though there arenโt any details on how Apple plans to use the startupโs technology, the Financial Times reports that Q.aiโs patents โshow its technology being used in headphones or glasses, using โfacial skin micro movementsโ to communicate without talking.โ
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