Apple is facing a crucial quarter. Ahead of the release of its first-quarter results, two key themes are emerging: demand for the iPhone 17 and the company's continued positioning in the field of artificial intelligence. Analysts expect these points to dominate discussions surrounding the figures and provide insights into Apple's future prospects for 2026.
Some Wall Street analysts remain cautious about Apple's long-term prospects. However, the analyst firm Wedbush takes a significantly more optimistic view. In a recent analysis, they explain why Apple is in a better operational and strategic position than its current share price suggests. This analysis considers not only revenue and profits, but also structural trends such as upgrade cycles, services growth, and the future AI roadmap.
Expected results for the first quarter
Apple will release its first-quarter results on Thursday and subsequently hold its usual conference call with analysts. According to a note to investors, CEO Wedbush expects quarterly revenue of $136.68 billion. In comparison, revenue in the same quarter last year was $124 billion.
This estimate is below the highest Wall Street consensus expectation of $138.4 billion. Nevertheless, analysts believe Apple could exceed this forecast. This assumption is based on several factors, including robust demand for current products and a noticeable recovery in key markets.
iPhone 17 as a key revenue driver
A key point in the analysis is the strong demand for the iPhone 17. Despite more intense competition, particularly in the Chinese market, Wedbush expects Apple to finish the quarter exceeding previous expectations for iPhone sales.
Additionally, Apple benefits from significant untapped upgrade potential. Of the approximately 1.5 billion iPhones currently in use worldwide, an estimated 315 million devices have not been updated in the past four years. This figure indicates that a substantial portion of the user base is likely to upgrade, significantly increasing sales opportunities for new iPhone generations.
Strong growth in the service business
Besides hardware, services remain a key growth driver for Apple. Wedbush expects the company to exceed Wall Street consensus estimates in this area as well. Cloud services and payment services, in particular, are contributing to this development.
Analysts expect the service segment to achieve mid-double-digit percentage growth compared to the previous year. This momentum will not only drive increased revenue but also provide greater stability, as recurring revenue plays a more significant role than in the traditional hardware business.
Artificial intelligence is once again coming into focus
A key focus of the analysis is the role of artificial intelligence at Apple. The company continues to expand its activities in the field of generative AI. CEO Tim Cook is expected to elaborate on the AI strategy during the conference call.
The focus is on the planned overhaul of Siri and the agreement with Google. The delay in the context-aware update of Siri is seen as a deliberate and necessary step. Apple aims to tightly integrate AI functions with its own hardware ecosystem, rather than delivering fast but isolated solutions.
Following the signing of the agreement with Google, Apple is now working on finalizing its AI strategy for 2026. This includes an update to Siri expected in the spring, as well as further announcements at WWDC in June.
Valuation, AI premium and outlook for 2026
Wedbush believes that Apple's current stock price does not yet reflect a true "AI premium." If Apple fully implements its AI roadmap, the analysts see a potential additional value of $75 to $100 per share.
Even though Apple is likely to face several structural and technological challenges in 2026, its AI strategy is considered a crucial factor for long-term success. Against this backdrop, Wedbush maintains its price target of $350 and confirms its "Outperform" rating.
Apple demonstrates operational strength looking ahead to 2026
The upcoming quarterly figures show that Apple is operationally sound while simultaneously working on key future technologies. Strong demand for the iPhone 17, the growing services business, and the gradual realignment in the field of artificial intelligence illustrate why Apple continues to be considered relevant in the long term. Looking ahead to 2026, it will become clear whether the current strategy delivers the expected added value and is reflected in the share price. The best products for you: Our Amazon storefront offers a wide selection of accessories, including those for HomeKit. (Image: Shutterstock / Katerina Elagina)
Disclaimer: No recommendation for investments
This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.
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