Apple is a little late in the AI game, but it is gradually working toward a position where it can compete against industry giants. We have reported on various instances where Apple has released a handful of AI models, and the technology behind the curtains is nothing short of breakthroughs. While it is too early to conclude, AI could significantly impact Apple's future revenue, but the next earnings call will only show little growth.
TD Cowen predicts little growth in Apple's next earnings call ahead of AI-powered iPhone 16 launch
Industry analysts have been speculating how the company will perform in the future, considering the arrival of generative AI technology on the iPhone and other products. According to the investment analyst firm TD Cowen, Apple's upcoming earnings call will grow only by a little, but it remains hopeful that the company's AI efforts will be reflected in the numbers. Various analysts are predicting if the company's AI efforts will be evident this year.
Analysts at JP Morgan predicted in March that Apple will adhere to major growth next year with the release of the iPhone 17 lineup. This means that the analysts are waiting for the AI technology to mature before it gathers returns from the market. The investment firm notes that AI will have a major impact on iPhone sales in 2025, but only small gains are expected this year. On the flip side, Morgan Stanley claims that a significant impact on iPhone sales through AI will be seen this year.
In new investor notes seen by AppleInsider, TD Cowen notes that AI will have an impact on iPhone sales, but it remains skeptical. The investment firm previously speculated that the iPhone will see a boost in demand as part of its growth in China and India. However, iPhone sales in China are on a consistent downward trajectory. To that, TD Cowen notes that the results could be offset by increased sales in the "underpenetrated" Indian market.
The investment analysts at TD Cowen also speculate that the iPhone will see a YoY decline in sales, which is typically expected as the company is ready to launch the new iPhones. The sales will be restored once the iPhone 16 lineup hits the shelves. Apart from the iPhone, TD Cowen notes that the OLED iPad Pro's entry into the market will sustain iPad sales, which have taken a hefty blow as Apple failed to announce a new model of the iPad last year.
Other than this, the demand for the Vision Pro is consistently declining, but that could be due to its limited availability. The Apple Watch has also taken a hit with the blood oxygen feature removed from the Series 9. Mac sales are expected to go down by 4 percent as well, while the services sector is expected to gain 11 percent during the same time.
About the author: Ali Salman is a technology reporter for Wccftech mobile section with a specialized focus on Apple and the intellectual property that drives mobile innovation. He has cultivated a unique expertise in analyzing and deconstructing complex technology patents, translating dense legal and technical documents into clear, insightful reports on future products.
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