iPhone Sales Hit Record High Despite Apple's AI Stumbles

$85.3 billion. That's how much Apple made from iPhone sales in just three months—the highest quarterly figure since the device debuted in 2007. The twist? This record came despite the company's well-publicized struggles with artificial intelligence.

When AI Fails, Design Succeeds

Apple promised to revolutionize Siri with AI capabilities in 2024. That promise remains unfulfilled. Instead, the company pivoted to what it knows best: sleek design and user experience. The iPhone 17 introduced a "liquid glass" aesthetic, which Apple also rolled out to older models through a free software update last September.

The strategy worked brilliantly. iPhone sales jumped 23% compared to the same quarter last year, driving total company profits to $42.1 billion—a 16% increase. Revenue across all products reached $143.8 billion, exceeding analyst expectations and sending shares up in after-hours trading.

This success reveals something profound about consumer behavior. Despite the AI hype dominating tech headlines, buyers still prioritize familiar values: design, reliability, and ecosystem integration over cutting-edge features they might never use.

Apple's Humble Pie: Partnering with Google

But Apple isn't ignoring the AI wave. The company plans to finally release its delayed AI features, including a more conversational Siri. The catch? It's partnering with Google's latest Gemini 3 model to make it happen.

This collaboration marks a significant shift for Apple, a company famous for its "not invented here" philosophy. From Steve Jobs onward, Apple prided itself on controlling every aspect of the user experience. Turning to Google—a key competitor in multiple markets—signals that even Apple recognizes the complexity of modern AI development.

The partnership raises intriguing questions about data privacy, Apple's core differentiator. How will the company maintain its privacy-first brand while relying on Google's AI infrastructure? This balancing act could define Apple's next chapter.

Market Leadership Through Strategic Patience

Despite its AI shortcomings, Apple ended 2025 as the world's top smartphone seller with nearly 20% market share, just ahead of Samsung. This dominance suggests that being first to market with AI features matters less than getting them right.

While competitors rushed AI-powered phones to market, Apple took time to perfect its approach. The company's patient strategy—waiting until it can deliver AI features that truly enhance the user experience—may prove wiser than the industry's rush to slap "AI" labels on incremental improvements.

For investors and consumers alike, this raises a fundamental question: In an industry obsessed with being first, is there still value in being best?