Apple Is Finally Turning a Corner, But The Real Test Starts Now
AppleAAPL is returning to its roots and finally giving customers what they want — better design and practical hardware improvements that are giving long-time bulls something to cheer about. After two years of chasing trends and falling behind on AI, the tech giant has essentially admitted that AI can wait — focusing instead on what made it once the world’s most valuable company in the first place. And the bet is paying off.
Don’t toss out this Apple yet: The company’s stock has finally turned positive on the year after the iPhone 17 launch, and Wall Street’s getting bullish, with Wedbush bumping its price target to $310 (~20% upside). Wedbush believes Street estimates of ~230M units for fiscal 2026 could prove conservative, with actual demand potentially hitting 240-250M units if this momentum holds.
- Lines wrapped around the block at Apple’s Fifth Avenue store in Manhattan, with multiple shoppers telling Bloomberg they were finally upgrading from four-year-old iPhone 13 models.
- iPhone 17 units are tracking 10-15% ahead of the iPhone 16’s launch pace, with production in Asia expected to jump ~20% for base and Pro models.
Apple’s China and Siri Problem
Despite the momentum, Apple still faces mounting challenges. In China, where the company generates 16% of revenues, market share has slipped to just 12% — trailing local rivals Oppo, Huawei, and Xiaomi. Samsung launched a seventh-generation foldable phone that’s proving popular, while the iPhone maker is expected to reveal its own next year. And the Cupertino juggernaut still hasn’t figured out its AI strategy, while competitor GoogleGOOG has cemented a healthy AI lead.
- Apple’s iPhone 17 drew early criticisms for its limited AI integrations and lack of upgrades to Siri, while Google has doubled down on implementing AI features in its latest Pixel 10 smartphone.
- While the value of these AI features is still in question, Apple’s struggle to revamp Siri has left a widening gap between it and other virtual assistant rivals like Gemini and OpenAI.
The AI wildcard: OpenAI has been aggressively recruiting from Apple’s hardware, design, and supply chain teams, nabbing more than two dozen employees this year alone. The startup has even struck a deal with Luxshare, a major iPhone assembler, to produce what sources describe as a smart speaker without a display, targeting late 2026 or early 2027 for launch. With former Apple design chief Jony Ive and hardware executive Tang Tan leading OpenAI’s charge after the AI pioneer acquired their startup io Products for $6.5B, Apple’s facing a threat from the very talent that helped build its empire.