Apple achieved a new record with soaring iPhone sales in the holiday season, reaching $85.3 billion, a 23% increase from the previous year. Despite AI blunders, Apple remains optimistic about the iPhone’s potential as a cutting-edge AI platform. Total revenue hit $143.8 billion, exceeding analyst projections.

Apple’s late start in AI appears to be a non-issue as the company prepares to roll out more AI features across its ecosystem, including iPads, Mac computers, and smartwatches. Apple is tapping into Google’s AI model, Gemini 3, to address its AI shortcomings and continue innovating.

Despite AI challenges, the iPhone maintained its position as the global sales leader, capturing nearly 20% market share ahead of Samsung. Apple is confident in its revenue outlook for January-March, expecting a 13% increase from last year, higher than analyst estimates.

Apple faces a new challenge with a memory chip shortage affecting iPhone production and driving up prices. This could lead Apple to raise prices on iPhones and other products to offset rising memory chip costs. CEO Tim Cook is exploring options to address the financial impact of the memory chip crunch.

Read more at Yahoo Finance: Apple’s iPhone sales surge to new quarterly high despite early missteps in artificial intelligence