Demand for iPhone 17 is expected to be strong, AI issues will dominate Apple's performance exposure

JAKARTA - Apple is expected to record strong performance in the first quarter of fiscal year 2026, with demand for the iPhone 17 and artificial intelligence (AI) strategy being the main topics in the performance presentation to analysts. This was conveyed by Wedbush analysts ahead of the release of Apple's financial report scheduled for Thursday, January 29.

In a note to investors quoted by AppleInsider, Wedbush projected Apple's revenue in the first quarter to reach 136.68 billion US dollars, an increase compared to the same period last year of 124 billion US dollars. Although the projection is slightly below the highest estimate of the Wall Street consensus of 138.4 billion US dollars, analysts assess that the figure is still potentially exceeded.

Apple's positive performance is expected to be driven primarily by the launch of the iPhone 17, which has received a strong response from the market. In addition, Wedbush believes Apple will experience a significant recovery in the Chinese market, even though competition in the country is getting tighter.

Wedbush also predicts Apple will exceed expectations for iPhone sales this quarter. Currently, there are an estimated 315 million iPhone units out of a total of 1.5 billion active devices that have not been updated for more than four years, creating a large potential user base for upgrades.

In addition to the hardware product line, Apple's Services sector is also expected to record positive results. Wedbush assesses that Apple has the opportunity to surpass Wall Street consensus, with double-digit growth on an annual basis driven by the acceleration of cloud services and digital payment systems.

The issue of artificial intelligence is one of the main focuses of the report. Wedbush estimates that Apple CEO Tim Cook will provide further explanation of the company's AI strategy in the upcoming performance presentation. The contextual Siri updates and Apple's cooperation with Google are expected to be in the spotlight, especially given the delay in the launch of the Siri update.

According to Wedbush, the delay is a necessary step for Apple to ensure that AI integration runs optimally in its hardware ecosystem. After signing an agreement with Google, Apple is considered to need to finalize the blueprint for an AI strategy to accelerate the implementation of the technology throughout 2026.

The plan includes an expected refresh of Siri, which is expected to launch in the spring, as well as further announcements related to AI at the Worldwide Developers Conference (WWDC) in June.

Wedbush considers the importance of Apple's AI strategy has not been fully reflected in the current share price. Analysts estimate the potential for "AI premium" that could add value to Apple's shares by 75 to 100 US dollars per share if the strategy is optimally realized.

Despite facing various challenges and market dynamics in 2026, Wedbush believes Apple's AI roadmap will be a determining factor in the company's success going forward. On this basis, Wedbush maintains Apple's stock price target at the level of 350 US dollars with a "outperform" recommendation.