Apple is returning to its roots, says Big Technology's Alex Kantrowitz

Core Insights - The article discusses the positive momentum surrounding Apple's iPhone sales, highlighting that this cycle is the best since COVID-19, driven by new designs and features [2][5][9] - Apple's return to its core strengths in iPhone design and functionality is contrasted with its previous focus on artificial intelligence, which has not yet yielded significant results [3][6][8] - The company is experiencing a resurgence in China, with the base model iPhone sales doubling in the first 10 days of the iPhone 17 launch, indicating a potential for continued revenue growth [15][17] iPhone Sales and Market Performance - Analysts have noted a surge in iPhone sales following the introduction of new designs and features, such as improved camera systems and battery life [4][5] - The iPhone 17 is projected to achieve double-digit growth, a significant improvement compared to previous stagnation in sales [9][10] - The economic environment, including tariffs and competition from Huawei, has created both challenges and opportunities for Apple in the Chinese market [5][12] Artificial Intelligence and Future Risks - Despite the current success in iPhone sales, concerns remain regarding Apple's ability to innovate in artificial intelligence, especially with key talent leaving the company [8][12] - The upcoming update to Siri is critical; if it does not meet expectations, it could negatively impact Apple's long-term prospects [11][13] - The company is exploring partnerships with established AI players to enhance its capabilities, indicating a strategic shift in addressing AI challenges [12][13] China Market Dynamics - Apple's performance in China has improved significantly, with the base model iPhone sales doubling compared to the previous model, despite geopolitical tensions [15][17] - The ability to navigate the complex trade environment and maintain strong sales in China is crucial for Apple's revenue growth [16][17] - Tim Cook's recent diplomatic efforts in China are seen as beneficial for the company's standing in the region [13][14]