Apple's fiscal first-quarter earnings report is scheduled for release shortly after the market closes on Thursday. The company's performance is under scrutiny as investors express concerns regarding its position in the AI sector, particularly following its recent partnership with Gemini, which significantly boosted Alphabet's market cap to $4 trillion.
Amid these challenges, Apple has made a notable move by acquiring the Israeli AI audio startup Q.ai, marking its second-largest acquisition to date. This acquisition is backed by prominent venture capital firms, including GV, previously known as Google Ventures. With shares down approximately 7% year-to-date, the upcoming earnings call at 5 p.m. ET will be crucial for investor confidence.
Analysts will focus on hardware sales, particularly the iPhone, as Tim Cook previously indicated that this quarter could yield record revenue. Questions surrounding holiday demand for Apple's latest devices will also be a priority, as the company seeks to reassure investors about its core business amid AI development uncertainties.