Apple Licenses Alphabet's Gemini AI for Siri at $1 Billion Annually
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Record Revenue: Apple achieved a record sales figure of $416.2 billion in its 2025 fiscal year, up from $391 billion the previous year, demonstrating that its ongoing investments in AI have not hindered overall performance, but rather contributed to a 13% year-over-year growth in diluted earnings per share to $1.85.
- AI Leadership Change: In December, Apple appointed Amar Subramanya as its new AI head, aiming to enhance its AI strategy; analysts believe this move is a significant reset for Apple in the AI competition, potentially boosting its market competitiveness.
- Google Search Revenue Growth: Alphabet's search revenue reached $56.6 billion in Q3 2025, up from $49.4 billion in 2024, indicating the positive impact of AI technology in driving query growth, thereby solidifying its market position.
- Future Growth Potential: The AI industry is projected to expand 25-fold over the next decade, growing from $189 billion in 2023 to $4.8 trillion by 2033, and the ongoing investments by both Apple and Alphabet in this sector will provide strong momentum for their future performance.
AAPL
$270.97+Infinity%1D
Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 289.17 USD with a low forecast of 225.00 USD and a high forecast of 345.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
35 Analyst Rating
21 Buy
12 Hold
2 Sell
Moderate Buy
Current: 273.670
Low
225.00
Averages
289.17
High
345.00
Current: 273.670
Low
225.00
Averages
289.17
High
345.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV and Apple Vision Pro.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
