Cook explained that to handle users who might want to use Siri AI extensively, the company plans an upgrade option through iCloud+, though it is too early to define the specifics. (Incoming CEO John Ternus said Apple is focused on its own approach to artificial intelligence, but continues to see “enormous opportunity” in the sector.)
What the analysts said
Discussing the results, Morgan Stanley analyst Erik Woodring pointed to decelerating services growth and memory costs nibbling at the edge of Apple’s margins. “Apple’s leverage over the supply chain appears to be in question,” he said, adding it’s not clear whether AI is serving as a measurable tailwind to products or services, with its future monetization impact still uncertain.
Bank of America analyst Wamsi Mohan noted that continued demand means supply constraints are the biggest inhibitor for the stock, since demand will be shunted into subsequent quarters. Wells Fargo also pointed to the longer range picture that despite supply challenges in the current quarter, Apple still has plenty of momentum going into Q1 2027.