Apple Inc. (AAPL) reported a record iPhone revenue of $57 billion for the March quarter, marking a 22% year-over-year increase, largely attributed to the integration of its AI-focused features in the iPhone 17 lineup. Apple is embedding AI capabilities across its ecosystem, affecting not only its iPhones but also contributing to a 6% year-over-year growth in its Mac revenue, totaling $8.4 billion. The company indicated that AI enhancements in products like Mac Mini and Mac Studio are driving demand.
Additionally, AI adoption among enterprises is growing, with companies like Marsh and Freshworks deploying Apple devices to enhance their internal AI initiatives. In fiscal Q3 2026, Microsoft reported its AI business surpassed a $37 billion annual revenue run rate—a 123% year-over-year growth—while Alphabet saw a 19% increase in revenues driven by AI. In contrast, Apple’s shares have returned 14.4% year to date, lagging behind the broader sector’s 19.2% gain.
Apple continues to face stiff competition in the AI space from major players like Alphabet and Microsoft, who are leading in AI monetization and infrastructure. With Apple trading at a forward price/earnings ratio of 33.53, compared to the sector’s 25.96, concerns are mounting over its positioning in the generative AI landscape.
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