Apple has reported the most profitable quarter in its history. Strong iPhone sales played a major role in this success. Last year, Apple also overtook Samsung Electronics to become the world’s top smartphone seller.
Record Revenue Beats Market Expectations
On January 29 (local time), Apple released its first fiscal quarter results for October–December. The company posted revenue of $143.76 billion, marking a 16% year-on-year increase.
This figure exceeded the previous quarterly record of $102.5 billion. It also surpassed LSEG’s market estimate of $138.48 billion. Earnings per share (EPS) rose 19% to a record $2.84. The operating profit margin reached 48.2%.
iPhone Drives Strong Growth
The iPhone remained Apple’s biggest growth driver. iPhone revenue climbed to a record $85.27 billion, up 23.3% from last year. This was well above analysts’ expectations of $78.65 billion.
Apple CEO Tim Cook said the iPhone delivered its best quarterly performance ever. He cited strong global demand and record sales across all regions. Cook also revealed that Apple’s active device base has grown from 2 billion to 2.5 billion worldwide.
Apple Overtakes Samsung in Global Sales
According to market research firm Omdia, Apple sold 240.6 million smartphones globally last year. This allowed Apple to surpass Samsung Electronics, which sold 239.1 million units. As a result, Apple secured the top position in global smartphone shipments.
Shift in AI Strategy with Gemini Integration
Apple recently announced plans to integrate Google’s Gemini AI into Siri. The company will not rely solely on its in-house AI model. Industry experts see this as a strategic move. Apple appears focused on using best-in-class AI while strengthening its hardware and ecosystem.
Apple Acquires Israeli AI Startup Q.ai
Reuters reported that Apple has acquired Israeli AI startup Q.ai. The company specializes in improving audio quality in noisy or low-volume environments. The deal is valued at around $2 billion.
This acquisition is Apple’s second-largest to date. It follows the $3 billion purchase of Beats in 2014. The move highlights Apple’s growing interest in audio-based AI wearable devices.