CUPERTINO, Calif. (GeokHub) — Apple is expected to report its strongest iPhone sales growth in more than four years when it releases quarterly results on Thursday, buoyed by strong demand for its premium devices and growing anticipation around its artificial intelligence strategy.
Analysts forecast that iPhone revenue surged during the October-to-December period, traditionally Apple’s most important quarter, as consumers gravitated toward higher-priced Pro models with enhanced cameras and expanded storage options.
iPhone Sales Poised for Sharpest Growth in Years
Apple is projected to report a 13.8% rise in iPhone sales, marking its fastest growth pace in over four years, according to analyst estimates. Total company revenue is expected to climb 11.4% to a record $138.4 billion, supported by continued expansion in services such as the App Store, subscriptions and digital payments.
In Greater China, sales are forecast to have jumped roughly 15%, reflecting renewed demand across both mainland China and emerging markets.
Apple ended 2025 as the world’s largest smartphone maker, capturing about 20% of global market share, up from 18% the previous year.
Google AI Partnership Signals Strategic Shift
Investor focus will also be on Apple’s decision to integrate Google’s Gemini technology into its artificial intelligence features, including a revamped Siri. The move marks the most significant change yet in Apple’s approach to AI development.
Market analysts say the partnership allows Apple to introduce advanced AI capabilities across its vast installed base of more than two billion devices without incurring the massive infrastructure costs shouldered by rivals.
Despite growing interest in AI, analysts caution that artificial intelligence has not yet become a major driver of smartphone upgrades, with hardware features still playing the dominant role in consumer purchasing decisions.
Supply Chain Pressures and Chip Shortages
While demand remains strong, Apple faces potential headwinds from a global memory chip shortage that could raise manufacturing costs and pressure margins in coming quarters.
Still, investors remain confident in Apple’s ability to manage supply disruptions, citing its scale and long-standing relationships with suppliers. Analysts say Apple is likely to secure long-term supply agreements and negotiate pricing to soften the impact.
Services Growth and Regulatory Scrutiny
Apple’s services business is expected to grow more than 14%, continuing to provide a critical revenue cushion. However, the segment faces ongoing regulatory pressure in Europe, where authorities are scrutinizing the company’s app marketplace and payment practices.
Despite these challenges, many investors believe Apple can monetize AI efficiently without the heavy spending required by competitors, relying instead on its ecosystem and global reach.
