Apple Hits Record iPhone Sales of $85.3B Despite AI Delays, Taps Google’s Gemini 3 for Siri Upgrade

Apple posted record iPhone sales of $85.3 billion in Q4 2025 (Oct-Dec), up 23% YoY, despite failing to deliver promised 2024 AI upgrades to Siri, forcing a partnership with Google to integrate its Gemini 3 model. The surge, driven by iPhone 17 adoption and a “liquid glass” software update, lifted Apple’s quarterly profit 16% to $42.1 billion ($2.84/share) on $143.8 billion in revenue — both beating analyst estimates. Shares rose over 1% in after-hours trading but remain flat YTD through January 29, 2026. Apple, still the global smartphone leader with ~20% market share per IDC, plans to launch delayed AI features this year, including a more conversational Siri, acknowledging its lag in generative AI amid industry-wide transformation.