Apple Expected to Report Strong iPhone Sales for Holiday Quarter

Apple is expected to report the highest sales in four years on January 29, 2026. According to Yahoo Finance, Apple’s iPhone sales growth is driven by high demand for its Premium Pro models. As the company reports on iPhone 17 sales surge, investors will be keen to know how the company plans to navigate the global memory chip crunch.

Some analysts hold that the memory chip shortage could push iPhone production costs. Although they say the company has navigated supply chain disruptions skillfully in the past, they expect the company to leverage its market leadership to “pressure suppliers for concessions and to lock in supplies”.

Q4 iPhone Sales Expected to Rise

Analysts expect Apple’s holiday quarter iPhone sales to increase by 13.8%, without the AI integration. This will represent the strongest sales growth the company has reported in four years.

The tech giant attracted customers in China and developing markets with camera design and higher storage space in its recent Pro devices. Earlier this year, Counterpoint Research reported that Apple dominated the smartphone market in 2025, controlling 20% of global sales, up from 18% the previous year.

The company is expected to report $138.43 billion in total revenue, representing an 11.4% growth from the previous year. Analysts attribute Apple’s overall revenue rise to a 14.1% growth in its services unit.

Apple’s AI Deal With Google

Apple will be reporting strong sales at a time when it is preparing to introduce AI features powered by Google’s Gemini models. The iPhone maker recently signed a major deal with Google to fast-track Siri AI upgrade.

The Apple-Google AI deal impact is the most significant shift the company has made in its AI strategy. The move has been lauded by investors, with some saying the decision allows the iPhone maker to leverage its huge install base of over two billion devices without spending on AI model development.

The latest deal "should demonstrate to the market the iPhone will remain the consumer device of choice for accessing new AI tools,” Analysts from Goldman Sachs stated as cited by Yahoo Finance.

Apple Stock Performance

In 2025, Apple stock gained 8.5%. The tech company missed the AI rally that pushed Microsoft and Alphabet stocks up by 14.7% and 65.3% respectively. Despite the slow gain, there are investors who hold the view that the company can grow revenue without investing heavily in AI infrastructure.

"Apple can probably generate a positive return on very little AI ⁠investment, thanks to its distribution," said Stonehage Fleming Global Best Ideas Equity Fund Manager, Gerrit Smit stated as per Yahoo Finance.

But as Apple’s overall revenue increases, its services unit, which hosts Apple Store, could experience challenges as EU probe into its payment structure intensifies. The regional block has imposed fines worth hundreds of millions of euros on Apple for abusing its market dominance in the mobile app market.