Strong iPhone Sales will Boost Apple's Holiday Quarter, with Google AI deal in Spotlight

Apple Inc. (NASDAQ:AAPL) is among the Ken Fisher Stock Portfolio: 12 Best Stocks to Buy.

According to a January 28, 2026, Reuters story, demand for the high-end iPhone 17 Pro models is likely to fuel Apple Inc. (NASDAQ:AAPL)’s highest iPhone sales rise in over four years. In the October-December fiscal first quarter, analysts predict that iPhone revenue will surge by roughly 13.8%. Moreover, the total revenue is expected to jump by 11.4% to a record $138.43 billion. In 2025, the corporation held a 20% market share in smartphones worldwide, up from 18% the year before. Even though customer demand was not yet being driven by artificial intelligence features, sales of the newest iPhone series skyrocketed in late 2025.

Apple Inc. (NASDAQ:AAPL) aims to implement AI features using Google’s Gemini, a move that analysts believe improves iPhone positioning without requiring significant investment. Greater China sales are projected to expand roughly 15%, and services revenue is forecast to grow 14.1%. Investors will be watching how the firm handles growing expenses due to a worldwide scarcity of memory chips, which could put pressure on margins even though the supply chain is expected to be solid overall.

The stock is down by 4.70% YTD as of January 29, 2026.

Apple Inc. (NASDAQ:AAPL) designs, produces, and markets wearables and accessories, tablets, smartphones, computers, and other associated services.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 20 Best Performing Stocks in 2025 and 12 Best Food Stocks to Buy in 2026. 

Disclosure: None. This article is originally published at Insider Monkey.