Back to blog

Apple and the AI Spring: A Quiet Return of the King?

Apple isn’t pushing into AI through the loudest headlines, but through devices that users hold in their hands every day. In early March, it unveiled the iPhone 17e with an A19 chip, 256 GB of base storage, and a price tag of $599, while in the latest quarter, it reported revenue of $143.8 billion, diluted earnings per share of $2.84, and operating cash flow of nearly $54 billion. This is precisely where the essence of the whole topic begins. The company isn’t trying to sell AI as a standalone product, but as a reason to upgrade iPhones more frequently, stay within the ecosystem, and use new features directly in the system, apps, and services.

Apple and the AI Spring: A Quiet Return of the King?

The iPhone 17e opens Apple Intelligence to a broader market

 

Apple took the first step in February 2025 with the iPhone 16e, which came with the A18 chip, its own C1 modem, and a starting price of $599, and was already built for Apple Intelligence at that time. A year later, the iPhone 17e followed suit, starting at the same $599 price point but increasing the base storage to 256 GB and featuring the newer A19 chip, C1X modem, and MagSafe, thereby bringing the AI-capable iPhone closer to a mass audience without raising the entry price. The hardware upgrade is also significant. Apple states that the C1X in the iPhone 17e is up to twice as fast as the C1 in the iPhone 16e and consumes 30% less power than the modem in the iPhone 16 Pro, while fast charging brings the battery to 50% in about 30 minutes and wireless charging goes up to 15 W. In other words, the "e" line is no longer just a cheaper iPhone, but a full-fledged entry point into the Apple Intelligence ecosystem.1[3]

 

The push for AI built right into the system

 

Apple Intelligence today is not a single standalone AI feature, but a layer woven throughout the entire system. Features already include Live Translation, visual intelligence for on-screen content, smart actions in Shortcuts, extensions for Genmoji and Image Playground, automatic suggestions in Reminders, and summarization and content handling across apps. Importantly, these features aren’t separate from the system but are integrated directly into messaging, calling, text editing, the calendar, photos, and automations—that is, into the activities users perform every day.[4]

 

Apple and Google have entered into a multi-year agreement under which the redesigned Siri and other future Apple Intelligence features will utilize Gemini models, while Google stated in a joint announcement that its technology will form the foundation for the next generation of Apple Foundation Models. Additionally, Apple Intelligence will continue to run on Apple devices and via Private Cloud Compute.[5]

 

Apple Silicon Delivers Performance, Privacy, and Cost Efficiency

 

The tech giant’s strength in AI lies not only in software but in the fact that the company controls the hardware, modem, operating system, and part of the cloud layer. The iPhone 16e uses the A18, whose 6-core CPU is, according to Apple, up to 80% faster than the A13 Bionic in the iPhone 11, and the 16-core Neural Engine handles machine learning models up to 6x faster than the A13. The iPhone 17e is already switching to the 3-nm A19 chip, featuring a 6-core CPU, a 4-core GPU, and an updated 16-core Neural Engine optimized for large generative models.13

 

From a financial perspective, it is also significant that the company performs a large portion of AI computations directly on the device and uses Private Cloud Compute on its own Apple Silicon servers for more demanding tasks; the company asserts that user data is neither stored nor shared with Apple under this model. This approach helps mitigate pressure on external cloud costs while supporting high profitability, with Apple achieving a gross margin of 48.2% in the latest quarter.[6]

 

For shareholders, the key question is whether AI will accelerate sales and sustain capital returns

 

Apple’s latest official quarterly report from January 29, 2026, shows that the company entered 2026 in very strong shape. Revenue reached $143.8 billion, representing year-over-year growth of 16%; diluted earnings per share rose 19% to $2.84; and operating cash flow reached nearly $54 billion. Apple also returned nearly $32 billion to shareholders in the same quarter.2

 

AAPL_2026-03-18_19-26-58

Apple’s stock price performance over the past five years*

 

The report further indicates that of this amount, $25 billion went toward the repurchase of 93 million shares and $3.9 billion toward dividends. The company also declared a quarterly dividend of $0.26 per share on January 29, 2026, and the dividend history confirms that the $0.26 rate was already in effect for declarations in May, July, and October 2025 and continued into January 2026.* For shareholders, this means only one thing. If Apple Intelligence helps accelerate the iPhone upgrade cycle and sustain services growth, the company still has ample room to continue dividends and buybacks at its current cash flow level.6 [1]

 

[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which may change. These statements do not guarantee future performance. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.   

* Past performance is no guarantee of future returns .

Warning! This marketing material is not and should not be construed as investment advice. Past performance is no guarantee of future returns. Investing in foreign currencies may affect returns due to fluctuations. All securities transactions may result in both gains and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which may change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.

 


[1] https://www.apple.com/sk/newsroom/2026/03/apple-introduces-iphone-17e/

[2] https://www.apple.com/newsroom/2026/01/apple-reports-first-quarter-results/

[3] https://www.apple.com/sk/newsroom/2025/02/apple-debuts-iphone-16e-a-powerful-new-member-of-the-iphone-16-family/

[4] https://www.apple.com/newsroom/2025/09/new-apple-intelligence-features-are-available-today/

[5] https://www.reuters.com/business/google-apple-enter-into-multi-year-ai-deal-gemini-models-2026-01-12/

[6] https://www.stocktitan.net/sec-filings/AAPL/10-q-apple-inc-quarterly-earnings-report-d498ae47d743.html

Read more

Nvidia and Amazon are launching a new phase of the AI race: a million chips show where hundreds of billions are headed

Nvidia and Amazon are launching a new phase of the AI race: a million chips show where hundreds of billions are headed

When the biggest players in the tech market stop talking about vision and start reserving physical computing capacity years in advance, the nature of the entire industry changes. Nvidia will supply Amazon’s cloud division with up to 1 million GPU chips by the end of 2027, with deliveries set to begin as early as this year. At first glance, this is just another major corporate deal in AI. In reality, however, this news reveals something more significant.

Ackman Takes on Music Giant: Pershing Square Seeks to Take Control of Universal Music for $64 Billion

Ackman Takes on Music Giant: Pershing Square Seeks to Take Control of Universal Music for $64 Billion

Bill Ackman has once again launched a major capital play, this time in one of the most stable and profitable segments of the media business. His firm, Pershing Square, has submitted a non-binding offer to acquire Universal Music Group valued at approximately €55.75 billion, or about $64.31 billion. The goal is not only the acquisition itself but also to move the company closer to the U.S. market, achieve a higher valuation, and expand its investor base.

Unilever is changing the game: merger with McCormick to create a $65 billion company

Unilever is changing the game: merger with McCormick to create a $65 billion company

Unilever has taken one of its biggest strategic moves in recent years by agreeing to merge its Unilever Foods business with McCormick, creating a global group valued at approximately $65 billion with combined revenues of around $20 billion for fiscal year 2025. For shareholders, this is not just another merger announcement, but a clear signal that Unilever’s management wants to radically restructure the portfolio and shift the company’s focus to faster-growing categories outside of packaged foods. This makes it all the more interesting that the market did not receive this deal with enthusiasm.[1]

Palantir: A Geopolitical Shield and the Winner of a New Era of Digital Leadership in the Defense Sector

Palantir: A Geopolitical Shield and the Winner of a New Era of Digital Leadership in the Defense Sector

While the broader technology market declined in March 2026 under the pressure of uncertainty, Palantir experienced its best week since August of last year. The company’s shares rose by approximately 15%* and closed at $157.16, clearly defending their position in the portfolios of investors seeking protection from geopolitical chaos. However, this sharp rise was not accidental – the market’s attention turned to companies whose software solutions form the very backbone of modern defense.