New York, January 12, 2026, 12:19 (EST) — Regular session
- Apple shares ticked higher following a multi-year agreement to integrate Google’s Gemini models into a redesigned Siri
- Counterpoint data showed Apple leading 2025 smartphone shipments but pointed to a weaker 2026
- Attention shifts to Apple’s January 29 results for clues on timing, costs, and demand
Apple (AAPL.O) shares climbed about 0.6% to $260.82 in midday trading Monday after announcing a multi-year deal to incorporate Alphabet’s Google Gemini models into a revamped Siri set for 2026. “After careful evaluation, Apple determined Google’s AI technology provides the most capable foundation for Apple Foundation Models,” Google said on X. This deal extends a relationship that already names Google the default search engine on Apple devices, generating tens of billions in annual revenue for Apple, while giving Gemini access to more than two billion active devices. 1
The announcement comes amid growing pressure on big tech, as investors demand clearer returns from AI investments. For Apple, enhancing Siri’s capabilities remains one of the rare tangible ways to encourage iPhone users to upgrade and stay engaged within its ecosystem.
Gemini belongs to the latest wave of “generative AI” — software designed to generate text, summaries, and responses from basic prompts. For now, Apple is banking on leveraging a partner’s models to bridge gaps more quickly than developing its own technology in-house.
Counterpoint Research reported that global smartphone shipments climbed 2% in 2025, driven by stronger demand in emerging markets. Apple topped the chart with a 20% market share, followed by Samsung at 19% and Xiaomi at 13%, the firm said. Looking ahead, Counterpoint expects the market to weaken in 2026 due to chip shortages and rising component costs, as chipmakers shift focus to AI data centers instead of handsets. 2
That said, the stock barely budged. Investors are debating if a Siri update will actually boost unit sales or just pile on expenses in a market where parts and supply chains are already stretched thin.
The broader market weighed on sentiment. U.S. stocks slipped Monday as fresh political pressure on the Federal Reserve raised concerns about the central bank’s independence. Financial shares also took a hit after a proposed one-year cap on credit card interest rates surfaced. “It’s another dent to the armor” of Fed independence, said Jordan Rizzuto, CIO at GammaRoad Capital Partners. 3
Execution poses a straightforward risk. Should the Siri overhaul face another delay, or if users notice minimal change, the market will view the deal as just a headline instead of a driver. Attention will then shift back to iPhone demand and margins.
Investors will be looking closely for clues on whether the Google partnership affects Apple’s costs and how fast new features roll out across the iPhone range. Apple also needs to prove that its AI capabilities can jibe with its privacy stance without shifting too much processing to the cloud, beyond what users are comfortable with.
Apple’s next major milestone is its earnings report. The company will hold its conference call on January 29 at 2:00 p.m. PT / 5:00 p.m. ET, sharing quarterly results and business updates. 4
