New York, Jan 28, 2026, 17:47 EST — Trading has moved into after-hours.
- Apple shares slipped roughly 0.7% in late trading, closing at $256.44.
- Apple is set to release its quarterly earnings on Thursday, drawing attention to iPhone sales and its AI strategy.
- Traders are keeping an eye on potential margin hits from rising memory costs and challenges facing the App Store in Europe.
Shares of Apple Inc (AAPL.O) slipped roughly 0.7% in after-hours on Wednesday, closing near $256.44. During the regular session, the stock fluctuated between $254.53 and $258.95.
The timing feels tricky. Apple is set to release earnings on Thursday, and it remains a stock that can move the Nasdaq by itself. Even a solid beat might fall short now; investors are eager to see a clear plan on how Apple will profit from AI.
U.S. stocks closed with minimal movement following the Federal Reserve’s decision to keep rates unchanged, leaving uncertainty over future borrowing cost moves. The Nasdaq nudged up, while the S&P 500 ended almost unchanged. After-hours, big tech earnings triggered a mixed bag of reactions.
Apple’s performance hinges on iPhone sales. Analysts surveyed by LSEG predict a 13.8% rise in iPhone revenue for the fiscal first quarter, pushing total revenue up 11.4% to an all-time high of $138.43 billion. Services revenue is expected to jump 14.1%. Data from Visible Alpha points to a roughly 15% increase in sales from Greater China, while Counterpoint reports Apple grabbed a 20% share of the global smartphone market in 2025.
Apple’s AI strategy builds directly on its hardware foundation. Reuters described the choice to integrate Alphabet-owned Google’s Gemini into a redesigned Siri as “the biggest shift to date” in Apple’s AI play. Goldman Sachs analysts weighed in, saying the Google partnership “should demonstrate to the market the iPhone will remain the consumer device of choice for accessing new AI tools.” Reuters
Some investors see Apple’s edge in distribution. “Apple can probably generate a positive return on very little AI investment, thanks to its distribution,” said Gerrit Smit, manager of the Stonehage Fleming Global Best Ideas Equity fund. He highlighted Apple’s installed base of over two billion devices. Reuters
Costs remain a key concern. Investors will be watching closely for signs of a global memory chip shortage that might drive up production expenses and squeeze margins. Rosenblatt Securities noted Apple’s “great skill in navigating supply chain disruption” and expects the tech giant to leverage its scale to pressure suppliers and secure supply. Reuters
Apple’s services segment — including the App Store and subscriptions — has faced intense regulatory pressure in Europe over its payment policies. Reuters reported the company has been slapped with fines totaling hundreds of millions of euros for allegedly abusing its dominance in the mobile app market.
However, the situation works both ways. Should iPhone demand fall short of estimates, or if Apple signals tougher cost pressures and regulatory hurdles ahead, a cautious forecast could drag the stock down despite a strong headline beat.
Apple plans to report earnings after Thursday’s market close, with its conference call scheduled for 5 p.m. ET, as noted on its earnings call page. Investors will focus on the timeline for the Siri update and any clues about margin expectations for the next quarter.
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