Apple delivered the goods in its holiday quarter, ringing up billions more than expected in global iPhone sales and in its China business, while beefing up its already impressive profit margins and boasting more than 2.5 billion active Apple devices in the wild.

It was a reminder of CEO Tim Cook’s unparalleled mastery of the controls that keep the $3.8 trillion company humming.

But it was also a reminder of the challenges Apple faces, and the limits of the company’s leadership in a changing market. Apple proved once again that it can build, ship, and sell hardware better than anyone on the planet, especially when supply chains are under pressure. When it comes to a vision for AI however, Apple, and Cook, had shockingly little to say.

Asked about the company’s recent deal to partner with Google for AI capabilities in Siri, the timeline for return on investment in AI, and for other updates on its AI efforts, Apple executives served up canned non-answers.  “We’re bringing intelligence to more of what people love and we’re integrating it across the operating system in a personal and private way, and by doing so it creates great value,” Cook said.

Result: Despite the blowout quarter, Apple’s stock floundered, gaining a scant 0.2% in after hours trading.—AO

Waymo, the self-driving car company owned by Alphabet, has pulled ahead as the early leader in the self-driving car business. Its robotaxis are ubiquitous in San Francisco, and increasingly in other cities including Atlanta, Miami, and Austin.

But on Thursday, the company shared some bad news. One of its cars recently hit a child in Santa Monica, Calif. Fortunately, the child, whose age and identity have not been released, suffered only minor injuries, according to TechCrunch. 

According to Waymo, the "young pedestrian" entered the roadway "suddenly," from behind an SUV. The driverless Waymo, which was traveling at 17 miles per hour, quickly hit the brakes and collided with the child at a speed of roughly 6 miles per hour (Waymo claimed in its blog post that a human driver in the same situation would have only had time to slow to 14 mph). Authorities were quickly contacted, the company noted. And the National Highway Traffic Safety Administration has opened an investigation into the incident. 

As General Motors can attest, collisions can spell the end of a self-driving business. The company pulled the plug on its Cruise robotaxi business in 2024 in the wake of a high-profile incident in which a San Francisco pedestrian was dragged under the car. Waymo is believed to be worth more than $100 billion and has big plans for its robotaxis. But that could change very quickly if one of its cars has a bad accident. —AO