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Strong iPhone sales to power Apple’s holiday quarter, Google AI deal in focus

Strong iPhone sales to power Apple’s holiday quarter, Google AI deal in focus

By Akash Sriram
Publication Date: 2026-01-28 10:20:00

By Akash Sriram

Jan 28 (Reuters) – Apple is set to report its strongest iPhone sales growth in four years on Thursday, driven by robust demand for its premium Pro models as it prepares to roll out artificial intelligence features ​developed with Google’s technology.

Investors, however, will look for comments from the company on how it aims to navigate a global ‌memory chip crunch that is likely to raise its cost and weigh on margins.

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The decision to use Alphabet-owned Google’s Gemini for a revamped Siri and other Apple Intelligence ‌features is the biggest shift to date in the company’s AI strategy.

Wall Street has largely lauded the move, saying it allows Apple to tap into its installed base of more than two billion devices without the hefty spending required to develop cutting-edge models.

The Google deal “should demonstrate to the market the iPhone will remain the consumer device of choice for accessing new AI…

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