Apple is expected to post strong quarterly (Q4) earnings on Thursday, with analysts predicting record iPhone sales and revenue, despite slow rollout of artificial intelligence features.
The company’s latest iPhone 17 series, launched on September 19, has already attracted high demand in key markets like the United States and China.
Strong demand for the high-end iPhone 17 Pro models, known for their sharper displays, expanded storage, and A19 Bionic chip, has been the driving force behind the surge.
Research firm Counterpoint reported that iPhone 17 sales in the first 10 days were 14% higher than those of the iPhone 16 lineup, with the premium models topping orders.
According to data compiled by LSEG, Apple’s iPhone sales for the July–September quarter are projected to rise 8.6% to $50 billion, a record for the fiscal fourth quarter.
Total revenue is estimated at $102.17 billion, up 7.6% year-on-year, while earnings per share are expected to come in at $1.77. The period captured only a few days of iPhone 17 sales, suggesting even stronger results ahead during the holiday season, Apple’s most profitable quarter.
Apple’s stock climbed 24% in the third quarter, its best performance in over two years, helping the company reach a $4 trillion market valuation on 28 October.
However, despite this achievement, Apple is still behind some of its Big Tech competitors in market performance due to its slower integration of AI tools.
“Apple is riding high into earnings with better-than-expected iPhone 17 sales in both the U.S. and China, buoying it back to top-smartphone-provider status,” said Jacob Bourne, an analyst at eMarketer. “Yet the battle is far from won as questions about its AI standing linger.”
The company is still being investigated over its artificial intelligence strategy. Reports of high-profile talent exits and delays in its AI-powered Siri upgrade, now expected in 2026, have led to doubts about Apple’s competitiveness in an industry embracing AI.
Bob O’Donnell, president of TECHnalysis Research, said: “They’re clearly challenged. They have not come up with any compelling offerings and they don’t seem to have a strategy that’s compelling enough to keep a lot of very high-end AI talent working there.”
In China, Apple’s September-quarter shipments also saw growth from the new iPhone lineup, despite competition from Huawei and Xiaomi.
However, sales of the slimmer iPhone 17 Air have been sluggish. Its $1,000 price tag, single-lens camera, and delayed pre-orders in China, caused by pending eSIM approval, have numbed eagerness among budget-conscious buyers.
Beyond sales, Apple is still pushing its manufacturing diversification strategy. The company has been shifting more of its iPhone production to India to reduce dependence on China and cushion against U.S. tariffs.
This comes with short-term costs, Apple expects about $1.1 billion in tariff-related expenses for the quarter, but analysts say the long-term benefits of its Indian supply chain could outweigh the initial impact.
While the company’s financial outlook appears strong, all eyes will be on CEO Tim Cook during the earnings call. Investors expect him to outline Apple’s next steps in AI development, a space where competitors like Microsoft and Google are already setting the pace.
