Apple sees big December quarter driven by strong iPhone 17 demand

Core Insights - Apple is set to report its fiscal fourth quarter earnings, which includes initial sales data for the new iPhone 17 models [1] - Analysts indicate improved demand for iPhone 17, particularly for entry-level and Pro models, with expectations for sales growth in fiscal 2025 [2] Financial Performance - In the June quarter, Apple reported a 10% year-over-year revenue growth, while analysts expect a 7.7% sales growth for the September quarter [6] - Analysts project Apple to guide for $132.31 billion in December quarter sales and earnings of $2.53 per share, compared to an EPS of $1.77 and revenue of $102.24 billion in the previous quarter [6] Tariff Impact and Capital Expenditure - Apple has faced negative impacts from tariffs, with potential costs of $1.1 billion, and investors are keen to see if actual costs were below forecasts [3][4] - There is a call for Apple to increase capital expenditure and AI investments, as it has not participated significantly in the data center and AI chip investment boom [4] AI and Technology Investments - Apple has indicated a significant increase in investments in technology, which is expected to reflect in capital expenditures, with insights on AI strategy anticipated from CEO Tim Cook [5] - The company is also shipping AI servers from a factory in Houston, indicating a move towards enhancing its AI capabilities [3] Sports and Media Strategy - Apple has secured a five-year deal with Formula 1 to broadcast races in the U.S. on Apple TV, which is part of its broader sports and media strategy [5]