Apple Earnings Preview: iPhone 17 Momentum and Services Growth in Focus

Apple is set to report its quarterly earnings this week, with investors closely monitoring whether the company’s iPhone 17 momentum is translating into stronger sales growth. Early indicators suggest robust demand for the new models, with upgrade activity running ahead of last year’s iPhone 16 cycle. This could support modest top-line upside, even as currency headwinds and softer China demand remain potential overhangs.

The company’s high-margin Services division—which includes the App Store, subscriptions, and iCloud—remains a key earnings driver. Analysts expect another quarter of steady double-digit growth, underscoring the business’s resilience even in a more challenging macro environment.

On the innovation front, Apple’s rollout of its Apple Intelligence features is expected to be a central focus, as the company works to reassert its AI narrative and strengthen its ecosystem advantage heading into 2026.

Lale Akoner, Global Market Analyst at eToro, commented: “Apple’s growth story continues to hinge on two core pillars—hardware innovation and the expansion of its high-margin Services business. If iPhone 17 volumes remain strong and Services maintain double-digit growth, the company could reaffirm investor confidence and its long-term growth trajectory. The introduction of Apple Intelligence may also help position Apple more prominently within the AI conversation in the year ahead.”

Overall, while near-term macro headwinds persist, Apple’s brand strength, ecosystem depth, and ability to drive premium demand continue to support its long-term investment appeal.