Apple has confirmed its long-promised generative-AI upgrade to Siri will ship in Spring 2026, roughly 21 months after the originally touted launch date. CEO Tim Cook told investors in a December briefing that the new Siri will leverage on-device processing powered by Google’s Gemini Ultra model, deliver multimodal prompts across text, voice and images, and integrate deeply with native apps. The company now expects the AI feature to drive a 10% incremental iPhone upgrade cycle in fiscal 2026, translating to roughly 35 million additional unit sales and $14 billion in incremental revenue, according to internal forecasts cited by management. Apple Intelligence will be offered at no extra fee, a strategic bet on device sales rather than subscriptions.

Berkshire Hathaway sold 55% of its AAPL stake over the past two years, reducing its position from 900 million shares to 405 million shares as of Q3 2025. The divestment aligns with Warren Buffett’s adherence to Benjamin Graham’s 75/25 stock-to-bond allocation rule amid what he deems an “expensive” overall market. Despite shedding shares, Buffett publicly praised Apple at the 2025 annual meeting—calling Tim Cook “our best investment manager”—while acknowledging that AAPL still comprises 21% of Berkshire’s $310 billion equity portfolio. Analysts note that Buffett’s remaining Apple position, now valued at $110 billion, signals confidence in the long-term brand moat despite short-term rotation into bonds and cash, which has swelled Berkshire’s cash hoard to $355 billion.

Following a near-5% December pullback, Apple trades at 33.0 times consensus 2026 earnings estimates—generally in line with peers but below peak 2021 valuations. Wedbush’s Dan Ives forecasts that a successful Siri relaunch could justify a re-rating toward 38x forward P/E, implying a one-year price target of $375, or 28% upside from current levels. Morgan Stanley analysts project that every 5x multiple expansion on an estimated $12.50 of adjusted EPS for fiscal 2026 would add $62 to Apple’s share price. Should AI features drive services revenue growth from $85 billion today to $100 billion by 2026, the firm argues, then the market may award Apple a valuation premium commensurate with more pure-play AI beneficiaries.

Even before AI-charged Siri arrives, Apple’s iPhone 17 lineup drove 8% year-over-year unit growth in Q4 2025, reaching 77 million shipments globally. Strong demand for the A18 Bionic chip and new design form factors in Japan and Western Europe offset slower upgrades in China, where local competitors have cut entry-level prices by up to 15%. Mac and iPad also outperformed expectations, with Mac revenue up 12% and iPad up 9% in the holiday quarter. Management reiterated its capital return program will allocate $90 billion to buybacks and dividends in fiscal 2026—roughly 110% of expected free cash flow—underscoring confidence in hardware margins above 38% even as R&D spend balloons to $35 billion to support AI initiatives.