iPhone Sales Defy Gravity as Apple Taps Google for AI Rescue
CUPERTINO, CA — Apple has once again proved that its hardware is bulletproof, even when its software is in catch-up mode. The tech giant reported a staggering $85.3 billion in iPhone sales for the holiday quarter, marking a new all-time high since the device first hit shelves in 2007.
While the numbers are a victory lap for CEO Tim Cook, the subtext of the quarterly report reveals a massive strategic pivot. In a move that signals a “tacit acknowledgment” of its internal AI struggles, Apple is officially turning to Google’s Gemini 3 AI model to breathe life into a long-delayed Siri overhaul.
Record-Breaking Financials at a Glance
Despite a late start in the generative AI race, Apple’s ecosystem remains an absolute juggernaut.
- Total Revenue: Surged 16% to $143.8 billion.
- Net Profit: Hit $42.1 billion, or $2.84 per share.
- Global Footprint: Over 2.5 billion active devices are now in the wild.
- Market Share: Apple ended the year as the global smartphone leader, capturing nearly 20% of the market and edging out rival Samsung.
The “Liquid Glass” Gamble Paid Off
To keep the momentum steady while AI features were stuck in the lab, Apple leaned into aesthetics and software-driven hardware updates. The company introduced a “liquid glass” design for the iPhone 17 and offered a free software upgrade to bring the sleek look to older models last September. This design-first strategy successfully bridged the gap, fueling a 23% year-over-year jump in iPhone revenue.
Siri’s New Brain: Powered by Google
The most significant hurdle remains Siri’s “intelligence.” Apple had originally promised a smarter assistant in 2024 but has yet to deliver. The solution? A high-stakes partnership with Google. Apple is integrating Gemini 3 to finally make Siri conversational and versatile.
Zacks analyst Ethan Feller noted that while Apple was late to the AI party, the tech is now poised to scale “naturally” across iPads, Macs, and Apple Watches.
Storm Clouds: The Memory Chip Crisis
It’s not all smooth sailing. Cook warned analysts of a looming memory chip shortage. As massive AI data centers devour the global supply of processors, smartphone manufacturers are being squeezed.
“We do continue to see market pricing for memory increasing significantly,” Cook said, hinting that price hikes for iPhones may be on the horizon to protect profit margins.
Why This Matters: The Pragmatic Pivot
For years, Apple has prided itself on “in-house” innovation. Tapping Google for its AI backbone is a rare admission that the AI boom is moving too fast for even the world’s most valuable company to handle alone. By prioritizing a seamless user interface and leveraging Google’s raw AI power, Apple is betting that fans care more about a Siri that works than whose logo is on the code.
