Apple’s blowout Q1 results were a reminder of what makes the company so impressive—and why it’s floundering in AI

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.