Apple Hits Record iPhone Sales as Macs and Wearables Slip

Apple reported its strongest-ever iPhone sales in the final quarter of last year, driven by high demand for the new iPhone 17 lineup. Overall revenue jumped 16% year-on-year to $144bn, marking the company’s fastest growth since 2021. Sales surged across key markets including China, Europe, the Americas, Japan, and India, where Apple posted a record quarter. CEO Tim Cook said demand was so strong that Apple is currently constrained by supply.

Not all parts of the business shared in the success. Sales of wearables and accessories, such as Apple Watch and AirPods, fell by around 3%, while Mac computer sales dropped just over 7%. Analysts say Apple’s dominance in smartphones is facing growing uncertainty, particularly as competition intensifies and consumer expectations evolve.

Investors are closely watching Apple’s next steps in artificial intelligence, especially following its newly announced partnership with Google’s Gemini AI for future Siri upgrades. While Apple plans to spend $16bn on infrastructure and retail expansion next year, its AI investment remains modest compared to rivals like Microsoft. That cautious approach comes as Microsoft’s heavy AI spending has recently rattled investors, sending its shares sharply lower.

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