Tim Cook arrives at Sun Valley’s Allen & Company meeting in Sun Valley, Idaho.
David A. Grogan | CNBC
Apple is expected to post its third consecutive quarterly revenue decline when it reports earnings after the bell Thursday. Wall Street expects $81.7 billion in sales, which would be down about 2.3% from last year.
Apple’s stock is up over 51% so far in 2023, hitting all-time highs. Investors see it as a safe haven with strong cash flow, despite worries about slowing demand for consumer goods, including PCs and smartphones.
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Analysts will also want to hear about how the current quarter, which ends in September, is shaking out. Apple hasn’t given guidance since 2020, citing uncertainty, but it provides investors with some data points that they can use to determine whether Apple sees overall sales growing or shrinking.
The company’s forecast will be more important. It may give clues as to whether global economies are set up for a “soft landing” after two years of interest rate hikes.
The June period is typically Apple’s slowest quarter of the year, while its fourth fiscal quarter often captures back-to-school laptop spending, a few days of new iPhone model sales — which usually come out in September — and shows Apple’s momentum heading into the holiday season.
“What will matter most will be management’s September quarter,” wrote Morgan Stanley analyst Erik Woodring in July, adding that he expects Apple to guide to year-over-year revenue growth again.
Emerging markets and China
Some analysts are eager to see Apple give data points on India sales. Apple CEO Tim Cook traveled to the country in April and spoke about hopes for significant growth in the region. India became one of Apple’s top five iPhone markets during the quarter, according to analyst estimates.
“On the call, we look for additional details on its expansion in India, including its retail and manufacturing presence,” D.A. Davidson analyst Tom Forte wrote this week.
But Apple’s older growth driver, China, is likely to be closely watched as well. Greater China — including Hong Kong and Taiwan — is Apple’s third-largest sales region, and it has reported two straight quarters of revenue decline, even as the region reopened after years of strict Covid lockdowns.
“In our conversations, most investors feel that a soft China could pose a risk to the numbers and further commentary, but we feel that Apple’s position in China is on a solid footing and that the company is likely to see only a small if any decline in its iPhone sales,” wrote Piper Sandler analyst Harsh Kumar.
Kumar said if China ends up being weak, it could be offset by strong sales momentum in India.
Apple mainly manufactures in China and investors will want to hear that the company has overcome many of the supply chain snags that have hampered sales over the past two years. If Apple stockpiled parts and has enough to make what it needs to produce, it could help margins, analysts say.
Services growth and A.I. acceleration
Apple’s profitable services division includes monthly subscriptions such as Apple Music, warranties under AppleCare, fees from the App Store, advertising revenue from search licensing agreements with Google, payments from Apple Pay and other products.
Wall Street likes to see Apple’s services business grow regularly and smoothly, because the margins on services are so much higher than when Apple sells hardware. In particular, many analysts want to see services reaccelerate after a few quarters of weak growth because of lagging App Store software sales.
Apple suggested a 5% year-over-year increase in services, and FactSet’s estimates more than $20.7 billion in revenue. But analysts will want to see Apple signal more growth than that.
“For the Services business, we expect year-over-year revenue growth to accelerate from the +5% level expected in [fiscal third quarter,] with our checks suggesting online advertising has improved,” Deutsche Bank analyst Sidney Ho wrote.
Analysts will also likely ask about artificial intelligence, given the industrywide obsession with the technology and a recent Bloomberg report that Apple is developing a ChatGPT-like AI model internally. Don’t expect Apple to gush about what it’s working on internally, though.
“With the official intro of Vision Pro, we expect Apple’s updated comments on its AI aspirations to be a focus (albeit likely very high-level),” wrote Wells Fargo analyst Aaron Rakers.
Estimates
Apple reports its results by product line, which can give investors a look into which businesses are thriving and which ones are in a down cycle.
IPhone, iPad and Mac sales are all expected to be down on an annual basis, with iPad sales projected to drop nearly 11%, according to FactSet estimates. Wearables, the product category with headphones and Apple Watch — and what will likely be the reporting category for Vision Pro when it goes on sale — is projected to decline less than 1%.
However, analysts expect Apple’s services business to grow 5.2% on an annual basis, which would be a bright spot for the report.
Here’s what Wall Street is expecting, per FactSet estimates:
Revenue: $81.7 billion
EPS: $1.19 per share
Here’s what to expect from the company’s product lines, per FactSet estimates:
Marek Antoni Iwanczuk | Sopa Images | Lightrocket | Getty Images
Google on Friday made the latest a splash in the AI talent wars, announcing an agreement to bring in Varun Mohan, co-founder and CEO of artificial intelligence coding startup Windsurf.
As part of the deal, Google will also hire other senior Windsurf research and development employees. Google is not investing in Windsurf, but the search giant will take a nonexclusive license to certain Windsurf technology, according to a person familiar with the matter. Windsurf remains free to license its technology to others.
“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” a Google spokesperson wrote in an email. “We’re excited to continue bringing the benefits of Gemini to software developers everywhere.”
The deal between Google and Windsurf comes after the AI coding startup had been in talks with OpenAI for a $3 billion acquisition deal, CNBC reported in April. OpenAI did not immediately respond to a request for comment.
The move ratchets up the talent war in AI particularly among prominent companies. Meta has made lucrative job offers to several employees at OpenAI in recent weeks. Most notably, the Facebook parent added Scale AI founder Alexandr Wang to lead its AI strategy as part of a $14.3 billion investment into his startup.
Douglas Chen, another Windsurf co-founder, will be among those joining Google in the deal, Jeff Wang, the startup’s new interim CEO and its head of business for the past two years, wrote in a post on X.
“Most of Windsurf’s world-class team will continue to build the Windsurf product with the goal of maximizing its impact in the enterprise,” Wang wrote.
Windsurf has become more popular this year as an option for so-called vibe coding, which is the process of using new age AI tools to write code. Developers and non-developers have embraced the concept, leading to more revenue for Windsurf and competitors, such as Cursor, which OpenAI also looked at buying. All the interest has led investors to assign higher valuations to the startups.
This isn’t the first time Google has hired select people out of a startup. It did the same with Character.AI last summer. Amazon and Microsoft have also absorbed AI talent in this fashion, with the Adept and Inflection deals, respectively.
Microsoft is pushing an agent mode in its Visual Studio Code editor for vibe coding. In April, Microsoft CEO Satya Nadella said AI is composing as much of 30% of his company’s code.
The Verge reported the Google-Windsurf deal earlier on Friday.
Jensen Huang, CEO of Nvidia, holds a motherboard as he speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025.
The sale, which totals 225,000 shares, comes as part of Huang’s previously adopted plan in March to unload up to 6 million shares of Nvidia through the end of the year. He sold his first batch of stock from the agreement in June, equaling about $15 million.
Last year, the tech executive sold about $700 million worth of shares as part of a prearranged plan. Nvidia stock climbed about 1% Friday.
Huang’s net worth has skyrocketed as investors bet on Nvidia’s AI dominance and graphics processing units powering large language models.
The 62-year-old’s wealth has grown by more than a quarter, or about $29 billion, since the start of 2025 alone, based on Bloomberg’s Billionaires Index. His net worth last stood at $143 billion in the index, putting him neck-and-neck with Berkshire Hathaway‘s Warren Buffett at $144 billion.
Shortly after the market opened Friday, Fortune‘s analysis of net worth had Huang ahead of Buffett, with the Nvidia CEO at $143.7 billion and the Oracle of Omaha at $142.1 billion.
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The company has also achieved its own notable milestones this year, as it prospers off the AI boom.
On Wednesday, the Santa Clara, California-based chipmaker became the first company to top a $4 trillion market capitalization, beating out both Microsoft and Apple. The chipmaker closed above that milestone Thursday as CNBC reported that the technology titan met with President Donald Trump.
Brooke Seawell, venture partner at New Enterprise Associates, sold about $24 million worth of Nvidia shares, according to an SEC filing. Seawell has been on the company’s board since 1997, according to the company.
Huang still holds more than 858 million shares of Nvidia, both directly and indirectly, in different partnerships and trusts.
Elon Musk meets with Indian Prime Minister Narendra Modi at Blair House in Washington DC, USA on February 13, 2025.
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Tesla will open a showroom in Mumbai, India next week, marking the U.S. electric carmakers first official foray into the country.
The one and a half hour launch event for the Tesla “Experience Center” will take place on July 15 at the Maker Maxity Mall in Bandra Kurla Complex in Mumbai, according to an event invitation seen by CNBC.
Along with the showroom display, which will feature the company’s cars, Tesla is also likely to officially launch direct sales to Indian customers.
The automaker has had its eye on India for a while and now appears to have stepped up efforts to launch locally.
In April, Tesla boss Elon Musk spoke with Indian Prime Minister Narendra Modi to discuss collaboration in areas including technology and innovation. That same month, the EV-maker’s finance chief said the company has been “very careful” in trying to figure out when to enter the market.
Tesla has no manufacturing operations in India, even though the country’s government is likely keen for the company to establish a factory. Instead the cars sold in India will need to be imported from Tesla’s other manufacturing locations in places like Shanghai, China, and Berlin, Germany.
As Tesla begins sales in India, it will come up against challenges from long-time Chinese rival BYD, as well as local player Tata Motors.
One potential challenge for Tesla comes by way of India’s import duties on electric vehicles, which stand at around 70%. India has tried to entice investment in the country by offering companies a reduced duty of 15% if they commit to invest $500 million and set up manufacturing locally.
HD Kumaraswamy, India’s minister for heavy industries, told reporters in June that Tesla is “not interested” in manufacturing in the country, according to a Reuters report.
Tesla is looking to recruit roles in Mumbai, job listings posted on LinkedIn . These include advisors working in showrooms, security, vehicle operators to collect data for its Autopilot feature and service technicians.
There are also roles being advertised in the Indian capital of New Delhi, including for store managers. It’s unclear if Tesla is planning to launch a showroom in the city.