As consumers waited for a new model in a slow economy, Apple is likely to report a decline in iPhone sales for the April-June quarter, analysts said. It is crucial that the firm explain how it is utilizing artificial intelligence to boost growth.

According to 24 analysts surveyed by Visible Alpha, iPhone sales likely decreased by more than two percent during the period, down from over three percent growth a year earlier and 1.5 percent growth in the quarter ended in March.

For companies like Meta Platforms, Alphabet, and Microsoft that have demonstrated resiliency in their cloud businesses and a rise in digital ad sales, the quarterly report may signal a change from an optimistic earnings season.

Analysts forecast a mixed bag of results for the July–September quarter, but noted that specifics regarding the new iPhone 15—which may come with certain models sporting the more widely recognized USB-C port—are likely next month.

Apple typically doesn't offer a quarterly prognosis, but analysts believe the company may go into further detail on how AI is being used to enhance new products.

Compared to the approximately 37 percent growth in the tech-heavy Nasdaq Composite, Apple's shares have increased by more than 50 percent so far this year.

Due to an uneven economic recovery, sales from China, Apple's third-largest market, are predicted to remain flat, despite the fact that the company has performed better than Android rivals there.

Refinitiv data predicts a 10.6 percent and an 11.2 percent decline in Mac and iPad sales, respectively. However, several analysts predicted that the services sector, which includes Apple's App Store and streaming audio and video services, may be a bright light as a result of a recovery in the advertising market.

Although the pace is generally similar to that of the previous three quarters, the business, which makes up about a quarter of Apple's overall income, is anticipated to expand by 5.7 percent as it also benefits from price hikes for iCloud subscriptions.