Apple to report earnings for first quarter of 2025

Earnings and Revenue - Apple is set to report Q1 FY2025 earnings with estimated revenue of $124 39bn, a 4% YoY growth, and EPS of $2 35 [1] AI Developments and Challenges - Apple's AI initiatives, including Apple Intelligence, have faced criticism for inaccuracies and hallucinations, despite high anticipation [2] - Apple Intelligence has experienced glitches, such as generating fake news summaries, leading to complaints from the BBC [5][6] - The company suspended its news summary feature and introduced italicized AI notifications in the latest iOS update [7] Market and Stock Performance - Apple's stock fell roughly 8% at the start of 2025, driven by concerns over declining phone sales in China and competition from domestic rivals like Huawei [5] - Despite a broader tech sector downturn, Apple's stock remained relatively stable earlier in the week, partly due to its cost-effective AI integration strategy [4] Industry Context - The US tech sector faced significant losses, with over $1tn wiped from the leading tech index, including a record-breaking $600bn single-day loss for Nvidia [3] - Microsoft and Meta helped the tech sector recover after beating Wall Street earnings expectations [3] - DeepSeek's low-cost AI development contrasts with US AI companies' high spending, despite China's chip export controls [4]