Apple is poised to report its strongest iPhone sales growth in four years, driven by demand for its premium Pro models and the integration of Google’s artificial intelligence technology. The company’s fiscal first-quarter results, covering the October-December period, are expected to show a 13.8% increase in iPhone sales, according to analysts polled by LSEG.
The strategic partnership with Google, utilizing Alphabet’s Gemini for a revamped Siri and other Apple Intelligence features, marks a significant shift in Apple’s AI strategy. Wall Street analysts at Goldman Sachs believe this collaboration will reassure the market that the iPhone will remain the primary device for accessing new AI tools. This move allows Apple to leverage its installed base of over two billion devices without incurring the substantial costs associated with independently developing cutting-edge AI models.
While the AI revamp hasn’t yet significantly impacted smartphone demand, the iPhone 17 series experienced a surge in sales during the crucial holiday quarter of 2025. Strong performance was particularly noted in China and developing markets, where consumers were drawn to the refreshed camera design and increased storage capacity of the Pro models.
Apple’s success in the smartphone market continues, with the company holding a global market share last year, up from in , according to research firm Counterpoint. This growth demonstrates Apple’s ability to attract customers despite ongoing challenges.
However, investors will be closely watching for Apple’s commentary on navigating a global memory chip shortage. This shortage is anticipated to increase production costs and potentially impact profit margins. The ability to mitigate these cost pressures will be a key focus during the earnings call.
The partnership with Google extends beyond Siri, signaling a broader integration of Google’s AI capabilities into the Apple ecosystem. This collaboration is seen as a pragmatic approach, allowing Apple to rapidly deploy AI features while managing development expenses. The decision to utilize Gemini represents a departure from Apple’s traditional approach of developing core technologies in-house.
Despite the positive outlook for iPhone sales, the memory chip shortage presents a significant headwind. The potential for increased costs could erode profit margins, even with strong revenue growth. Apple’s supply chain management and negotiation strategies will be critical in minimizing the impact of this shortage.
The strong performance in China and developing markets is particularly noteworthy. Apple’s ability to appeal to consumers in these regions, through features like improved camera technology and increased storage, highlights the company’s adaptability and understanding of diverse market needs. This expansion beyond traditional strongholds is crucial for sustaining long-term growth.
The announcement of these expected results has already garnered attention from analysts and investors. The combination of robust iPhone sales and the strategic AI partnership with Google positions Apple favorably in the competitive smartphone landscape. The company’s ability to execute on its AI roadmap and manage supply chain challenges will be key determinants of its future success.
The Google AI deal is expected to demonstrate to the market that the iPhone will remain the consumer device of choice for accessing new AI tools. This is a critical message for Apple as it navigates the evolving landscape of artificial intelligence and seeks to maintain its position as a leader in the technology industry.
