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Apple Inc. surged 12 per cent in August, its strongest monthly performance in over a year, following a robust earnings report that delivered double-digit growth across key segments. The tech giant posted its fastest revenue expansion since 2021, bolstered by a surprising 4 per cent rise in sales in Greater China, a region that has faced increasing scrutiny amid rising competition and regulatory pressure.
The rally brought much-needed relief to shareholders after a challenging period marked by sluggish device demand and intensifying global competition.
“Apple’s August rally is encouraging, but sustained growth will depend on consumer demand for the iPhone 17 lineup,” said Josh Gilbert, Market Analyst at eToro.
Read more-iPhone 17 rumours: What to know about features, possible price, release date
Apple’s next major catalyst is its highly anticipated product launch event in September, themed “Awe Dropping.” The company is expected to unveil the iPhone 17 lineup, which includes the ultra-slim iPhone 17 Air, billed as Apple’s thinnest iPhone to date, alongside the standard and Pro models.
Also on the docket are the Apple Watch Series 11, new AirPods Pro, and potential teasers of a foldable iPhone, a product that could signal Apple’s most significant design evolution in over a decade.
“The iPhone 17 launch will be critical in determining whether Apple can sustain its momentum,” added Gilbert. “AI will be a key theme, and investors will want clearer signs of monetisation as Apple looks to close the gap with rivals.”
Privacy-first AI: Apple’s unique play
While competitors like Google, Microsoft, and Samsung have pushed aggressively into generative AI, Apple has so far taken a more cautious approach. That may be changing.
The iPhone maker is expected to showcase a slate of AI-powered, on-device features across its ecosystem, aiming to differentiate itself through a privacy-first strategy. This approach could prove to be a long-term advantage, particularly as consumer concerns over data privacy continue to mount.
Apple’s AI roadmap has become a point of investor focus, with analysts speculating that the upcoming iPhone 17 could include advanced on-device AI tools for Siri, photo editing, and productivity, features that would help close the gap with more AI-forward rivals.
Apple’s September event comes amid a favorable macroeconomic backdrop. With the US Federal Reserve signaling a potential interest rate cut, consumer sentiment may get an added boost, a critical factor heading into the holiday quarter.
Market analysts point out that Apple shares historically rally ahead of product launches and often retreat afterward. However, a strong iPhone 17 reception, particularly in high-growth regions like India and China, could break the trend and ignite a new upgrade cycle.
Even as device sales fluctuate, Apple continues to benefit from its increasingly sticky services ecosystem, which includes iCloud, Apple Music, and the App Store. This has provided a reliable revenue cushion and reinforces Apple’s broader shift toward becoming more of a services-led tech platform.
Unmatched customer loyalty and consistent hardware-software integration remain core advantages that Apple is likely to lean into during the iPhone 17 rollout.
Apple reportedly eyeing major AI acquisitions
In a significant strategic shift, Apple has reportedly held internal discussions about acquiring French AI startup Mistral as well as Perplexity AI, according to a report by The Information, citing sources familiar with the matter. These potential moves mark a departure from Apple’s historically cautious M&A strategy.
CEO Tim Cook signaled last month that Apple is open to larger AI-related acquisitions to accelerate its product roadmap. The company has faced criticism for trailing rivals in the rollout of generative AI capabilities.
Reuters reported that Apple and Mistral did not immediately respond to requests for comment, and Perplexity, which is backed by Nvidia and Amazon founder Jeff Bezos, claimed it is unaware of any merger conversations involving its company, apart from its own acquisitions.
Mistral, valued at more than $6bn after a Series B round last year, is reportedly in talks to raise $1bn at a $10bn valuation, according to the Financial Times. Bloomberg also reported earlier this year that Apple executives held internal talks about potentially bidding for Perplexity.
(With inputs from Reuters)
