This year, Apple has under pressure. It is lagging behind its fellow tech titans in artificial intelligence, its stock has dropped by double digits since the year started, it closed its first shop in China this week, and its supply chain is in danger because to impending US tariffs on Beijing. Investors will be closely watching the iPhone manufacturer’s potential turnaround when it releases its third-quarter fiscal year earnings on Thursday.
The corporation is still valued at over $3 trillion, and Wall Street is confident it will generate profits despite the pessimistic forecast. According to S&P Global, analysts anticipate that Apple will post a 4% increase in revenue over the previous quarter, to $89.3 billion.
According to Dipanjan Chatterjee, a vice-president and lead analyst at Forrester, “Apple has become accustomed to having revenue growth in this high-margin services business, which masks other areas of the business not performing as well.”
Chatterjee identifies several problems that have contributed to Apple’s recent poor performance. He claims that Apple’s AI adoption has been sluggish and that the company has trailed behind in hardware innovation, which has led to “consumer apathy.” Instead of revolutionary advancements, Apple Intelligence, the company’s AI product, has only offered minor additions. Additionally, more than a year has passed since Apple revealed a number of AI enhancements to Siri, its voice assistant, many of which are still pending deployment.
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