Written by Akash Sriram and Aditya Soni
(Reuters) – Apple is expected to report its biggest quarterly sales growth in two years on Thursday, with demand for iPhones stronger than in recent years, especially in China, as the company heads toward the end of its annual release cycle. are.
The results give investors the first hint of demand for the latest iPhone 16 series, which was launched just days before the end of the company’s fiscal fourth quarter.
But concerns that the slow pace of Apple Intelligence feature releases could put a damper on the AI-driven “supercycle” Apple’s biggest seller has been waiting for Management comments for the quarter will be a focus.
The company is trying to catch up in the AI field as Android smartphone rivals such as Samsung Electronics Co. and software rivals such as Microsoft aggressively roll out applications aimed at capitalizing on the generative AI boom.
“The strength of the iPhone 16 cycle is the most important issue for both the December quarter and 2025,” Bernstein analyst Toni Sacconaghi said.
“Investors should expect Apple to be positive about the iPhone 16 and Apple Intelligence, but that may not necessarily reflect the ultimate success of the cycle.”
The company on Monday began making a limited rollout of the feature in English to U.S. customers, weeks after the iPhone 16’s launch.
For now, Apple Intelligence remains unavailable in key markets including Europe and China, where the tech giant is under pressure from a resurgent Huawei and domestic players such as Vivo, Xiaomi and Honor.
This has raised concerns that customers will postpone buying devices from the all-important holiday season to next year, delaying the potential for AI to boost sales.
Apple is expected to see iPhone sales rise 3.8% in the September quarter, according to analyst estimates compiled by LSEG. If that happens, the decline of two quarters will be narrowed at once.
Overall revenue is expected to rise 5.7% in the July-September period, which makes up the fourth quarter of the fiscal year, according to LSEG data.
Sales from Greater China are expected to increase by 6.6%. According to local reports, some iPhone models, including versions of the iPhone 16 Plus, were given a 10% discount on online retail platform Pinduoduo ahead of the model’s official release.
Thanks to this and the iPhone 16 series, Apple gained second place in the Chinese market in the three months ending in September, according to IDC data.
iPad sales are expected to increase 10.1% to $7.09 billion, after rising 23.7% in the past three months due to the launch of more powerful versions of the tablet.
