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  • Apple Set To Reveal Earnings For First Quarter Of 2025

Apple Set To Reveal Earnings For First Quarter Of 2025

Apple to report Q1 earnings amid AI challenges and volatile tech market, with projected revenue of $124.39bn and EPS of $2.35.

Apple Set To Reveal Earnings For First Quarter Of 2025

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Apple is set to report its earnings for the first quarter of fiscal year 2025 after markets close on Thursday. Analysts project that the company will announce a quarterly revenue of $124.39 billion, representing a year-over-year growth of approximately 4%. Earnings per share are expected to come in at $2.35.

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AI Ventures and Market Performance

Investors are keenly observing Apple’s progress in artificial intelligence (AI), an area where the company has lagged behind competitors. The debut of Apple Intelligence in late October, the company’s first product utilizing generative AI, has received mixed reviews. The product was highly anticipated but has been plagued by inaccuracies and hallucinations, raising concerns about its reliability.

The release of Apple’s earnings comes during a challenging week for US tech stocks. The market experienced significant turmoil after Chinese AI company DeepSeek’s app skyrocketed to the top of Apple’s App Store, leading to a steep decline in stock prices for many tech firms. The leading US tech index lost over $1 trillion in market value. Nvidia, the chipmaker, recorded the largest single-day drop in US stock market history, losing nearly $600 billion of its market value, although it regained some value the following day. The tech sector showed signs of recovery after strong earnings reports from Microsoft and Meta.

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DeepSeek’s ability to create its AI assistant at a fraction of the cost that US companies spend on similar technology has added pressure to the market. This development comes despite China facing strict chip export controls.

Apple’s AI and Market Strategy

Interestingly, Apple appeared to be somewhat insulated from the market crash, with its stock even showing gains earlier in the week. Analysts attribute this to Apple‘s strategy of integrating AI into its devices, which helps to keep costs lower compared to developing expensive, cutting-edge models. Despite this, Apple has experienced a challenging start to 2025, with its stock prices falling approximately 8%. Concerns about declining phone sales in China, the world’s largest smartphone market, as domestic competitors like Huawei gain traction, have contributed to this decline.

Apple Intelligence has also faced issues, including generating inaccurate summaries in push notifications. The BBC filed a complaint with Apple in December, accusing the company’s AI feature of creating fake news attributed to the broadcaster. In one instance, Apple’s AI erroneously reported that “Brazilian tennis player, Rafael Nadal, comes out as gay.” Nadal is from Spain and is married to Maria Francisca Perello. Another false report claimed that Luigi Mangione, accused of killing the UnitedHealthcare CEO, had shot himself.

As a result of these inaccuracies, Apple suspended the news summary feature earlier this month. In its latest iOS update, Apple has begun displaying all AI-generated notifications in italics to indicate their origin.

Apple’s forthcoming earnings report and its ongoing efforts in AI development are critical for investors and market observers. The company’s ability to navigate the challenges of integrating AI technology while maintaining its market position will be closely watched.

ALSO READ: iOS 18.3 Update Now Available For All iPhones, Check Out The New Features


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