Apple's AI-Driven iPhone 18 Launch: A Mixed Bag for Investors

Apple recently launched its new iPhone 18 Pro and Pro Max alongside its first foldable iPhone Duo, offering unlocked preorders and promotions that help offset higher device prices.

The new lineup focuses on Apple Intelligence and Siri AI across iPhone, Apple Watch, and AirPods 5, tying premium hardware to AI features that can support higher average selling prices while keeping users embedded in the broader Apple ecosystem.

Analysts project revenue growth of 9.7% a year over the next three years, with profit margins easing from 27.6% to 26.7%. Earnings are expected to climb from $128.9 billion today to $164.4 billion by 2029, implying an increase of about $35.5 billion in profit.

However, some analysts lean into a softer iPhone demand story, modeling only 6.3% annual revenue growth and earnings of around $147.4 billion by 2029.