The iPhone 17 series stands on display at the Apple Store in New York City on 19 September 2025. Photograph: Shannon Stapleton/Reuters
Investors Eye Apple's AI Roadmap as Quarterly Earnings Approach
Apple is poised to release its first quarter earnings on Thursday after market close, with investor attention firmly fixed on the company's strategy for embedding artificial intelligence into its product ecosystem. The technology giant has demonstrated consistent financial growth, buoyed by robust iPhone sales, yet concerns persist that Apple may be lagging in the competitive AI arena.
Siri Reboot Aims to Calm Wall Street Nerves
In a bid to alleviate investor anxieties, Apple announced earlier this month that a revamped version of its voice assistant, Siri, will be powered by Google's Gemini AI models. This collaboration appears to have mitigated some market worries, with analysts adopting a cautiously optimistic stance. According to a Bloomberg analyst consensus estimate, forecasts project earnings of $2.68 per share on revenue of $138.4 billion, a significant increase from the $124.3 billion reported in the same period last year. This quarter typically represents Apple's most substantial of the year, following the holiday shopping season.
Record Performance Amid Market Volatility
Last quarter, Apple reported a new record for fourth-quarter revenue, reaching $102.5 billion. This achievement came shortly after the company's market value surpassed $4 trillion for the first time. Apple's stock continued its ascent, hitting an all-time high in early December. Although it has since declined by 10%, the stock remains up year-over-year, reflecting sustained investor confidence.
Challenges in the Chinese Smartphone Market
Despite strong overall iPhone sales over the past year, Apple's revenue from smartphones in China has fallen below Wall Street estimates. Investors view the Chinese market as crucial to Apple's long-term success. Jay Woods, a chief market strategist at Freedom Capital Markets, noted, "Fundamentally, they continue to face pressure in the Chinese markets. The company has not announced any major enhancements or roll-outs that have piqued investors' interest."
Future Innovations and Competitive Landscape
Widespread rumours suggest that Apple is planning to launch its first folding phone in 2026, aligning with competitors like Samsung, Motorola, and Google, which have offered folding smartphones for several years. This potential innovation could reinvigorate investor interest and bolster Apple's market position.
As Apple prepares to unveil its earnings, the tech community and investors alike await insights into how the company plans to leverage AI and navigate market challenges, particularly in key regions like China.
