Apple just had a record-breaking iPhone quarter

"iPhone sales surged despite delays surrounding an AI-upgraded Siri, with the base iPhone 17 model offering many features previously exclusive to "Pro" level devices, including an always-on display and a screen with a higher refresh rate. Rumors that iPhone Air sales fell short of expectations didn't seem to have a big impact, either. Apple's 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 Google's Gemini AI model. The company is also set to acquire an AI startup, called Q.ai, for $2 billion, according to the Financial Times. Though there aren't any 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 'facial skin micro movements' to communicate without talking.""

""iPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment, and Services also achieved an all-time revenue record, up 14 percent from a year ago,""

Apple posted record Q1 2026 revenue of $143.8 billion, up 16 percent year over year, with iPhone revenue exceeding $85.3 billion. The iPhone achieved its best-ever quarter and set all-time records across geographic segments, aided by the iPhone 17 bringing formerly Pro-only features to the base model. Services revenue rose 14 percent, supported by subscriptions such as Apple Music, iCloud, and Apple TV, while Mac and wearable revenue declined. Apple plans AI-powered personalization for Siri via a partnership using a custom Gemini model and will acquire Q.ai for $2 billion; Q.ai patents suggest sensor-driven inputs like facial-skin micro movements. Reports indicate ambitions to turn Siri into a built-in AI chatbot and to add AI web search capabilities.

Read at The Verge