Apple reports $57.6B iPhone revenue growth as AI drives upgrades and third-party fees
Apple’s fiscal 2026 earnings show record revenue of $57.6 billion from iPhones—a 17.5% year-over-year increase—and $10.8 billion from Macs, up 24%. The company attributes growth partly to AI, with CEO John Ternus calling it a ‘compelling reason for customers to upgrade.’ AI was mentioned 45 times on the earnings call, more than after its June 2024 AI unveiling, highlighting its strategic focus…
Key points
- iPhone revenue hit $57.6B in Q4, up 17.5% year-over-year, with AI cited as a driver for upgrades
- Apple plans to monetize AI through subscription limits and hardware sales for local AI workloads
- App Store fees from generative AI apps could exceed $1B in 2026, per The Wall Street Journal
Apple’s AI strategy avoids heavy infrastructure spending, instead relying on on-device processing, partnerships (e.g., Google’s Gemini for Siri), and cloud services for select features. The company plans to monetize AI usage through subscription tiers for cloud-dependent tools and hardware sales for local AI workloads. Gap and Christie’s are among customers using Mac Minis and Mac Studios for AI tasks, avoiding cloud costs. Apple also profits from App Store fees on generative AI apps, though competitors like OpenAI are redirecting users away from Apple’s payment system. Capital expenditures for AI remain minimal compared to peers like Amazon ($77.3B) and Alphabet ($51.4B).
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Apple is all in on AI — its own and everyone else’s
The Verge AI · 3 November 2026
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This text was published by The Verge AI and written by Rani Molla. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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