Connect with us

Published

on

Apple reports earnings for its second fiscal quarter on Thursday after the markets close.

Investor expectations are low and Apple could surpass them even if sales growth is weak. In February, Apple said it expected sales similar to last year’s $94.84 billion during the same period and flat iPhone sales.

Here’s what analysts expect from Apple, according to LSEG consensus estimates:

  • Earnings per share: $1.50
  • Revenue: $90.01 billion

Here’s how Apple’s business units are expected to fare in the March quarter, per LSEG estimates:

  • iPhone revenue: $46.00billion
  • Mac revenue: $6.86 billion
  • iPad revenue: $5.91 billion
  • Wearables, home and accessories revenue: $8.08 billion
  • Services revenue: $23.27 billion

Analysts expect Apple to give a forecast for the current quarter of about $83.23 billion in sales, which would be 1.8% annual growth. Apple shares are down about 10% this year, underperforming its peers and the broader market. Some worry that the 2023 iPhone 15 may be seeing weak demand.

But the biggest theme that investors will be watching for is the overall trend in Apple’s third-largest market: China. In the December quarter, sales dropped 13% in Greater China, which includes Hong Kong and Taiwan. Analysts polled by FactSet expect $15.25 billion in China regional sales, which would be a 14% year-over-year decline.

Even worse is what the slump could indicate: Deteriorating conditions in a key market for Apple where it also manufactures the vast majority of its products. Chinese government agencies over the past year have reportedly asked staff to curtail use of “foreign” devices — iPhones — suggesting that Apple may not have the support of Chinese national leadership.

Apple also faces increased competition from local companies, including Huawei, which recently introduced a 5G smartphone despite U.S. export controls on advanced chips.

“AAPL has de-rated significantly amid a weak iPhone 15 cycle and fears that Apple’s China business is structurally impaired,” Bernstein analyst Toni Sacconaghi wrote in a note last week. He has an outperform rating on the stock.

But Sacconaghi doesn’t see Apple being permanently hampered by Chinese Communist Party sentiment, calling the current weak cycle “more cyclical than structural” and pointing out Apple’s historical volatility in the region.

“In strong iPhone cycles, Apple’s China revenues typically grow much faster than Apple overall, as Chinese consumers embrace the new phone,” Sacconaghi wrote. “The strong embrace is typically followed by several quarters of weaker (and often negative YoY growth), as we are seeing now.”

Third-party data points on China aren’t strong, either.

Data from Counterpoint Research shows Huawei surged 70% on an annual basis in March, while Apple declined 19%, falling into third place. However, analysis of the data suggests that the “preliminary signs of iPhone demand improvement … is broader than previously expected,” UBS’ David Vogt wrote this week.

Meanwhile, state statistics show iPhone sales falling 33% in February, the second consecutive month of declining shipments.

Wells Fargo analyst Aaron Rakers said in a March note that iPhone sales could be down 20% on an annual basis during the quarter.

Expectations for the quarter are muted, and how Apple says it sees the current quarter shaping up may be more important than the results for the March quarter.

“There’s a chance Apple could see a relief rally/squeeze higher on a ‘better than feared’ earnings report/guide,” Morgan Stanley analyst Erik Woodring, who has an overweight rating on the stock, wrote in an April note. “This creates a tricky setup, and one we don’t believe investors necessarily need to step in front of.”

Apple hasn’t provided guidance since 2020, but company executives give data points that analysts can use to project sales. “June quarter revenue and gross margin guidance will be critical this quarter,” Woodring wrote.

Apple also typically updates investors during second-quarter earnings about how much it plans to spend on share buybacks for the rest of the year.

“We expect Apple to update its capital return plans at March quarter earnings, and don’t expect any meaningful deviation from recent plans,” Woodring wrote. In May 2023, Apple said it had authorized an additional $90 billion in repurchases.

Continue Reading

Technology

A little-known startup just used AI to make a moon dust battery for Blue Origin

Published

on

By

A little-known startup just used AI to make a moon dust battery for Blue Origin

Istari Digital CEO Will Roper talks about the AI technology that built the Blue Origin moon vacuum

Artificial intelligence has created a device that turns moon dust into energy.

The moon vacuum, which was unveiled on Wednesday by Blue Origin at Amazon‘s re:Invent 2025 conference in Las Vegas, was built using critical technology from startup Istari Digital.

“So what it does is sucks up moon dust and it extracts the heat from it so it can be used as an energy source, like turning moon dust into a battery,” Istari CEO Will Roper told CNBC’s Morgan Brennan.

Spacecraft carrying out missions on the lunar surface are typically constrained by lunar night, the two-week period every 28 days during which the moon is cast in darkness and temperatures experience extreme drops, crippling hardware and rendering it useless unless a strong, long-lasting power source is present.

“Kind of like vacuuming at home, but creating your own electricity while you do it,” he added.

The battery was completely designed by AI, said Roper, who was assistant secretary of the Air Force under President Donald Trump‘s first term and is known for transforming the acquisition process at both the Air Force and, at the time, the newly created Space Force.

Read more CNBC tech news

A major part of the breakthrough in Istari’s technology is the way in which it handles and limits AI hallucinations.

Roper said the platform takes all the requirements a part needs and creates guardrails or a “fence around the playground” that the AI can’t leave while coming up with designs.

“Within that playground, AI can generate to its heart’s content,” he said.

“In the case of Blue Origin’s moon battery, [it] doesn’t tell you the design was a good one, but it tells us that all of the requirements were met, the standards were met, things like that that you got to check before you go operational,” he added.

Istari is backed by former Google CEO Eric Schmidt and already works with the U.S. government, including as a prime contractor with Lockheed Martin on the experimental x-56A unmanned aircraft.

Watch the full interview above and go deeper into the business of the stars with the Manifest Space podcast.

X-Energy’s Kam Ghaffarian on Nuclear Power, AI, and the Space Tech Race

Continue Reading

Technology

Nvidia CEO Jensen Huang talks chip restrictions with Trump, blasts state-by-state AI regulations

Published

on

By

Nvidia CEO Jensen Huang talks chip restrictions with Trump, blasts state-by-state AI regulations

Jensen Huang: State-by-state AI regulation would drag industry to a halt

Nvidia CEO Jensen Huang said he met with President Donald Trump on Wednesday and that the two men discussed chip export restrictions, as lawmakers consider a proposal to limit exports of advanced artificial intelligence chips to nations like China.

“I’ve said it repeatedly that we support export controls, and that we should ensure that American companies have the best and the most and first,” Huang told reporters on Capitol Hill.

Lawmakers were considering including the Guaranteeing Access and Innovation for National Artificial Intelligence Act in a major defense package, known as the National Defense Authorization Act. The GAIN AI Act would require chipmakers like Nvidia and Advanced Micro Devices to give U.S. companies first pick on their AI chips before selling them in countries like China.

The proposal isn’t expected to be part of the NDAA, Bloomberg reported, citing a person familiar with the matter.

Huang said it was “wise” that the proposal is being left out of the annual defense policy bill.

“The GAIN AI Act is even more detrimental to the United States than the AI Diffusion Act,” Huang said.

Nvidia’s CEO also criticized the idea of establishing a patchwork of state laws regulating AI. The notion of state-by-state regulation has generated pushback from tech companies and spurred the creation of a super PAC called “Leading the Future,” which is backed by the AI industry.

“State-by-state AI regulation would drag this industry into a halt and it would create a national security concern, as we need to make sure that the United States advances AI technology as quickly as possible,” Huang said. “A federal AI regulation is the wisest.”

Trump last month urged legislators to include a provision in the NDAA that would preempt state AI laws in favor of “one federal standard.”

But House Majority Leader Steve Scalise (R-LA) told CNBC’s Emily Wilkins on Tuesday the provision won’t make it into the bill, citing a lack of sufficient support. He and other lawmakers will continue to look for ways to establish a national standard on AI, Scalise added.

WATCH: Nvidia currying favor to be able to sell chips in China

Nvidia obviously currying favor to be able to sell chips in China, says Niles Investment's Dan Niles

Continue Reading

Technology

Design executive behind ‘Liquid Glass’ is leaving Apple

Published

on

By

Design executive behind 'Liquid Glass' is leaving Apple

File: Then Apple Creative Director Alan Dye celebrates the launch of the July Issue at the new WIRED office on June 24, 2015 in San Francisco, California.

Kimberly White | Getty Images

Apple‘s head of user interface design, Alan Dye, will join Meta, in a notable shift of executive talent in Silicon Valley.

The iPhone maker confirmed Dye’s departure on Wednesday and Apple CEO Tim Cook said in a statement that the company prioritizes design and has a strong team. The statement said that veteran designer Stephen Lemay will succeed Dye.

“Steve Lemay has played a key role in the design of every major Apple interface since 1999,” Cook said in a statement.

Meta CEO Mark Zuckerberg in a Wednesday social media post said that Dye would lead up a new creative studio that brings together design, fashion and technology.

“We plan to elevate design within Meta,” wrote Zuckerberg, who did not say what specific products Dye will work on.

Compared to other Silicon Valley companies, Apple has always emphasized design to customers and investors as one of its strengths. Apple prominently features its design executives to discuss interface changes at the company’s launch events.

In June, Dye revealed a redesign of Apple’s software interface for iPhones, Macs and the Apple Watch called Liquid Glass. The company described it as an “elegant” new design with translucent buttons, updated app icons and fluid animations.

Dye said it was the “next chapter” of the company’s software and said it “sets the stage” for the next era of Apple products.

“Our new design blurs the lines between hardware and software to create an experience that’s more delightful than ever while still familiar and easy to use,” Dye said at the launch.

Reviews were mixed on the Liquid Glass update, which shipped with new iPhones in September.

Apple announces liquid glass during the Apple Worldwide Developers Conference (WWDC) on June 9, 2025 in Cupertino, California.

Justin Sullivan | Getty Images

For years, Apple design was embodied by executive Jony Ive, who left Apple in 2019 and is now working with OpenAI on artificial intelligence hardware alongside Sam Altman.

Dye took over user interface design and became one of the design studio’s leads in 2015 when Ive stepped back from a day-to-day role. Dye started at Apple in 2006 and worked on software for the iPhone, iPad, Mac, Apple Watch, Apple TV and Vision Pro, according to his LinkedIn profile.

He was also partly responsible for the first iPhone in 2017 that did away with the home screen button at the bottom of the device and replaced it with a software-based swipe-up motion.

Meta has said in recent years that it wants to be a major developer of hardware and Zuckerberg has said Apple is one of his company’s biggest competitors.

The social media company currently makes several virtual reality headsets under its Quest brand, and recently scored its first hardware hit with Ray-Ban Meta smart glasses, which are stylish sunglasses equipped with cameras and the ability to run an AI model that can answer questions. Sales of the device tripled over the past year, Ray-Ban parent company EssilorLuxottica said in July.

“We’re entering a new era where AI glasses and other devices will change how we connect with technology and each other,” Zuckerberg wrote.

Bloomberg first reported the move.

WATCH: Apple AI chief steps down: Here’s what to know

Apple AI chief steps down: Here's what to know

Continue Reading

Trending