In 2025, Apple was one of the two biggest underperformers among the so-called “Magnificent Seven” tech names, trailing the S&P 500 after U.S.–China tariffs drove up manufacturing costs in China, India and Vietnam. Investors were also critical of Apple’s minimal capital spending on artificial-intelligence projects, particularly compared with peers that committed tens of billions to AI infrastructure. While competitors have ramped AI capex, Apple’s restrained approach may prove advantageous if markets continue to question hefty infrastructure investments. Wedbush analyst Dan Ives predicts a strategic partnership with Google’s Gemini large-language model could generate significant licensing revenue and bolster Apple’s AI credentials in 2026.

In December, Apple announced a multi-year collaboration with Google under which its next-generation in-house foundation models will be built on Google’s Gemini architecture and cloud platform. In a joint statement, Apple said the deal would preserve its on-device processing and privacy standards while leveraging Google’s AI scale. The partnership follows delays in key Apple Intelligence features such as an enhanced Siri, and aims to accelerate Apple’s AI roadmap. Analysts note the alliance could unlock new user experiences—ranging from advanced photo editing to contextual assistance—helping Apple close the gap with rivals that unveiled their generative-AI systems earlier this year.

On January 13, Apple launched Creator Studio, a subscription bundle priced at $12.99 per month (or $129 annually) that includes Final Cut Pro, Logic Pro and Pixelmator Pro. The service offers a one-month free trial and family sharing for up to six users, while students and educators can subscribe at $2.99 per month. The move expands Apple’s suite of recurring-revenue offerings, a segment that grew 15% year-over-year to $28.8 billion in the September quarter. By consolidating its professional software under a single plan, Apple seeks to counter competitive pressure from Adobe’s Creative Cloud and mobile-first rivals like CapCut.

Despite being late to introduce a foldable iPhone, TF International Securities analyst Ming-Chi Kuo argues that Apple’s software integration and ecosystem strengths leave it well positioned when it enters the segment—potentially before 2027. Samsung expects foldable smartphone shipments to exceed 20 million units this year as consumer adoption grows, but Kuo highlights Apple’s history of defining premium categories through seamless hardware-software synergy. He foresees Apple leveraging its own iOS adaptations to deliver a more polished user experience than early Android-based foldables, suggesting that iPhone demand could pick up sharply upon launch.