All eyes are on Apple's AI strategy as the smartphone giant gets ready to report Q1 earnings

As Apple prepares to release its first-quarter earnings, analysts are focusing on the company's underdeveloped AI strategy, particularly its collaboration with Google's Gemini to enhance the Siri voice assistant. While competitors like Meta and Microsoft are showcasing significant investments in AI infrastructure, Apple's minimal capital expenditure raises concerns among investors. Analysts anticipate that the earnings report will shed light on Apple's future plans for artificial intelligence, which could play a crucial role in driving stock performance.

The importance of Apple's AI strategy cannot be overstated, as it faces increasing pressure to keep pace with rivals in a rapidly evolving tech landscape. An "AI premium" could be valued at $75-$100 more per share if investors recognize the potential of its partnership with Google. Despite some analysts forecasting a decline in iPhone sales impacting short-term stock performance, others project that innovations, including an upgraded Siri by mid-2026 and the introduction of a foldable iPhone, will position Apple favorably in the longer term. With expectations of strong revenue despite rising memory costs, the upcoming earnings report will be pivotal in shaping investor confidence in Apple's AI strategy.