Apple's 22 percent iPhone growth showcases its AI-era dominance

Apple's (AAPL) capital expenditures for the first three quarters of fiscal 2026 totaled $6.8 billion, a fraction of what other big tech companies are investing in AI-driven data centers. However, the company's financial strength isn't the only story. Investors should focus on the 22% year-over-year growth in iPhone revenue during the same period, a key indicator of Apple's competitive position.

The iPhone 17 family has seen strong demand, underscoring the product's enduring relevance. Even after two decades, the iPhone remains Apple's most critical revenue driver. The upcoming iPhone 18 and the anticipated iPhone Duo, featuring a foldable screen, suggest that Apple is far from slowing down in innovation.

While other companies are launching AI-native products, the iPhone's dominance as the primary device for interacting with AI positions it as an unshakable platform. This 22.4% growth in iPhone revenue highlights Apple's strong foothold in the early stages of the AI era.