New York, Jan 14, 2026, 09:36 EST — Regular session.
- Apple shares barely moved early Wednesday following the announcement of a multiyear Gemini-Siri AI partnership.
- Investors are assessing how the deal could impact Apple’s AI strategy ahead of its Jan. 29 earnings report.
- Industry data revealed Apple topped smartphone shipments in 2025, even as risks mount for 2026.
Apple shares held steady around $261 in early trading Wednesday, following a 0.3% gain to $261.05 on Tuesday.
The stock revolves around a familiar dilemma: can Apple ramp up its AI efforts without giving too much control to external partners? This question takes on added weight as the company approaches its upcoming quarterly report, where executives usually face intense scrutiny over product timelines and demand forecasts.
The backdrop intensified when Apple struck a multi-year deal to integrate Google’s Gemini models into a revamped Siri set for release later this year. Google confirmed Apple chose Gemini after “careful evaluation,” adding the models will also underpin other upcoming “Apple Intelligence” features—Apple’s growing lineup of generative AI tools. Reuters
The deal also highlights Apple’s ongoing tie-up with OpenAI, which saw ChatGPT integrated into its devices late last year to boost Siri’s ability to tackle tougher queries. Tesla CEO Elon Musk weighed in on X, labeling the move an “unreasonable concentration of power for Google,” stirring concerns over privacy and platform control.
“Apple’s move to adopt Google’s Gemini models for Siri pushes OpenAI into a secondary position,” Parth Talsania, CEO of Equisights Research, told Reuters. He described ChatGPT as more of an optional add-on than the baseline technology.
Google’s move into the Siri space expands the reach of its models, which already power much of Samsung’s “Galaxy AI,” while tapping into Apple’s massive installed base of over two billion active devices. Financial details weren’t revealed by Apple.
Investors face mixed signals on handset demand. Counterpoint Research reported a 2% increase in global smartphone shipments for 2025, with Apple topping the charts at a 20% share. The boost came from strong iPhone 17 sales and solid demand across emerging and mid-sized markets.
Counterpoint research director Tarun Pathak flagged a possible slowdown in the smartphone market in 2026. He pointed to chipmakers shifting focus to AI data centers instead of handsets, which could spark chip shortages and boost component prices. This combination risks squeezing margins or limiting sales volumes.
But there’s a risk. Should Siri’s update be delayed once more, or if the Gemini partnership sparks concerns over privacy and data use, Apple might face fresh scrutiny over its AI approach right as consumer electronics spending turns more volatile.
Traders are gearing up for Apple’s quarterly earnings due Jan. 29 after the market closes. They’ll also be looking for updates on when the Gemini-powered Siri features will roll out to devices.
