Apple just dropped its fourth quarter earnings, marking the first financial glimpse of iPhone 17 sales performance. Wall Street's watching closely as the tech giant navigates tariff pressures while investors question whether Apple's doing enough to compete in the AI arms race that's reshaping Big Tech spending priorities.
Apple just served up its fourth quarter earnings, and the numbers tell a story that's been months in the making. The September quarter marks the first time iPhone 17 sales hit the books - albeit just over a week's worth - giving Wall Street its first real look at whether Apple's latest smartphone lineup can break a sales slump that's lasted since 2022.
Analysts polled by LSEG are expecting $102.24 billion in revenue and $1.77 per share, representing 7.7% sales growth. That's a slight deceleration from June's 10% year-over-year bump, but still solid numbers for a company navigating an increasingly complex global landscape.
The iPhone 17 story is particularly compelling because early signs suggest Apple might finally have a hit on its hands. Analysts tracking the launch have noted improved demand for the iPhone 17 models, especially the entry-level and Pro variants. If that momentum holds, Apple's fiscal 2025 could mark the first year of iPhone sales growth since 2022 - a milestone that would validate CEO Tim Cook's product strategy.
But there's a shadow hanging over these results: the AI spending question. While Meta, Google, and Microsoft are pouring tens of billions into data centers and AI chips, Apple's been notably restrained. Some investors want to see the company step up its capital expenditures and match the AI investment boom reshaping Big Tech.
Cook did promise last quarter that Apple was "significantly" growing its AI investments, and we might see that reflected in today's capex numbers. The company also announced last week it's shipping artificial intelligence servers from a Houston factory, suggesting the AI spending is ramping up behind the scenes.
