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Apple set for big sales decline as investors await AI in iPhones

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Apple’s (AAPL.O), opens new tab plan to add generative AI to its iPhones and revive sagging sales in the crucial Chinese market will be in focus on Thursday, when the tech giant is expected to report its biggest quarterly revenue decline in more than a year, Reuters reported.

Long considered a must-own stock on Wall Street, Apple shares have underperformed other Big Tech companies in recent months, falling more than 10% this year as fears mount about its slow roll-out of artificial intelligence services and as a resurgent Huawei (HWT.UL) takes market share in China.

Analysts on average see iPhone sales, which account for about half of Apple’s revenue, falling 10.4% in the first three months of 2024, according to LSEG. That drop would be the steepest in more than three years.

The year-ago iPhone revenue that the 10.4% iPhone sales drop is measured against was unusually high as Apple satisfied pent-up demand after the COVID pandemic, company executives previously noted.

At least $5 billion of the $51.3 billion in iPhone sales a year ago was essentially catching up from disruptions in the December 2022 quarter when COVID lockdowns in China hampered iPhone production, executives said.

Even with that factored in, Wall Street expects a slight decline in iPhone sales, and analysts estimate Apple’s total revenue declined 5% in its fiscal second quarter ended in March. That would be Apple’s biggest revenue decline since the December 2022 quarter, when revenue fell 5.5%, read the report.

Apple earlier this year lost the crown of the world’s most valuable company to Microsoft (MSFT.O), opens new tab. Its market value stands at $2.68 trillion after the share price declined 11.24% so far this year.

Weak revenue and falling shares have pressured Apple to spruce up its flagship device after years without major upgrades.

The company is in talks with OpenAI and Alphabet-owned Google to add genAI features for the iPhone that could be unveiled at what is expected to be its biggest-ever annual developer conference in June, Bloomberg News has reported.

According to Reuters analysts believe such an AI integration could drive demand for the next iPhone series, expected to be announced in the fall.

While executives at Microsoft, Alphabet (GOOGL.O), opens new tab, Meta Platforms (META.O), opens new tab and other major technology firms have talked up their AI strategies on quarterly conference calls in recent months, Apple CEO Tim Cook has discussed his plans for the emerging technology much less.

Adding AI features to iPhones could also help Apple to compete better with Huawei and Samsung Electronics (005930.KS), opens new tab, which reclaimed the title of the world’s top smartphone vendor from Apple this year, driven by demand for the AI features in its Galaxy S24 smartphones.

“Replacement cycle tailwinds and incremental generative AI features set up Apple well for a strong iPhone 16 cycle,” Bernstein analyst Toni Sacconaghi said this week as he upgraded the company’s shares to “outperform” from “market-perform.”

“We believe prevailing weakness in China is more cyclical than structural, and note historically Apple’s China business has exhibited much higher volatility than Apple overall, given its very feature-sensitive installed base.”

Thursday’s earnings will also be watched closely for updates on the company’s stock buyback plan and the Vision Pro, Apple’s first major product in years that hit the shelves in February.

After initial enthusiasm, there have been signs that demand slowed for the $3,500 device, with an analyst saying this month that Apple has pulled back its production estimates for the mixed-reality headset.

The rest of the company’s hardware business is also reeling from soft demand, with iPads and Mac sales expected to fall 11.4% and 4.3%, respectively, in the March quarter, Reuters reported.

Apple has signaled it is sharpening its focus on the devices, which have also been hobbled by a lack of major upgrades.

At an Apple event this month, a revamped iPad line-up is expected to be unveiled and media reports have said that it plans to update every Mac model with faster, AI-focused M4 processors.

The services business, which includes App Store and subscription services such as Apple TV, is expected to remain a bright spot with revenue growth of 7.7%.

Apple shares closed down 0.6% at $169.30 on Wednesday.

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Trump administration set to receive $10 billion fee for brokering TikTok deal, WSJ reports

Vice President JD Vance had in ​September said that the new U.S. company will be valued at around $14 billion.

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President Donald Trump’s administration is set to receive a roughly $10 billion fee from investors in the recently completed ​deal to take control of TikTok’s U.S. business, the Wall Street ‌Journal reported on Friday, citing people familiar with the matter.

TikTok’s Chinese owner, ByteDance, in January finalized a deal to establish a majority American-owned joint venture that will secure U.S. ​data, to avoid a U.S. ban on the short video app ​used by over 200 million Americans.

TikTok USDS Joint Venture LLC will ⁠secure U.S. user data, apps and algorithms through data privacy and cybersecurity ​measures. It disclosed few details about the divestiture.

Vice President JD Vance had in ​September said that the new U.S. company will be valued at around $14 billion.

The payment is part of the agreement through which investors friendly with the administration gained control of TikTok’s ​U.S. operations from ByteDance, WSJ said. It is on top of the ​investments already made to establish a new entity to operate the app in the U.S.

Investors ‌Oracle (ORCL.N), ⁠Silver Lake, Abu Dhabi’s MGX and other backers paid about $2.5 billion to the Treasury Department when the deal closed and are to make a number of subsequent payments until the total reaches $10 billion, per the Journal.

TikTok and ​the White House did ​not immediately respond ⁠to Reuters requests for comment.

Officials from the administration have said the fee is justified, citing Trump’s role in rescuing ​TikTok’s U.S. operations and guiding negotiations with China to ​complete the ⁠deal while tackling lawmakers’ concerns over national security, according to WSJ.

Earlier this month, Trump and U.S. Attorney General Pam Bondi were sued by retail investors in two ⁠social ​media rivals of TikTok seeking to reverse the ​U.S. president’s approval of a deal by the company’s Chinese owner ByteDance to form a majority ​American-owned joint venture.

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NASA eyes March 6 launch of astronaut moon mission 

Artemis program managers completed a comprehensive simulation of the Space Launch System’s launch-day countdown, but said remaining work could still push the launch date further into March.

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Last Updated on: February 26, 2026

NASA officials said the agency was targeting March 6 for the launch of four astronauts around the moon and back as part of its Artemis II mission after overcoming rocket-fueling snags in a second key launch rehearsal this week, but cautioned that remaining prep work could warrant more time.

The U.S. space agency on Thursday night capped a nearly 50-hour rehearsal of the Artemis II launch countdown, fueling the rocket with some 730,000 gallons of propellant without running into the pesky hydrogen leaks that hobbled an initial rehearsal last month, officials said during a news conference.

Artemis program managers were elated that the Wet Dress Rehearsal, a comprehensive simulation of the Space Launch System’s launch-day countdown, went smoothly, but said remaining work ahead could still push the launch date further into NASA’s March launch window.

“I felt like last night was a big step in us earning our right to fly. So, felt really good, very proud of the team,” said NASA launch director Charlie Blackwell-Thompson.

Remaining work includes testing the rocket’s flight termination system and conducting a sweeping Flight Readiness Review, a day-long meeting of agency management during which they effectively double-check all rocket hardware and mission procedures before liftoff. – Reuters

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Musk’s Starlink faces high-profile security test in Iran crackdown

Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground.

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Iran’s crackdown on dissidents is shaping up as one of the toughest security tests yet for Elon Musk’s Starlink, which has served as a lifeline against state-imposed internet blackouts since its deployment during the war in Ukraine, Reuters reported.

SpaceX, which owns Starlink, made the satellite service free for Iranians this week, placing Musk’s space company at the center of another geopolitical hot spot and pitting a team of U.S.-based engineers against a regional power armed with satellite jammers and signal-spoofing tactics, according to activists, analysts and researchers.

How SpaceX withstands Iranian attacks on its most lucrative line of business is expected to be closely watched by U.S. military forces and intelligence agencies that use Starlink and its military-grade variant Starshield, as well as China, whose own nascent satellite internet constellations are set to rival Starlink in the coming years. With SpaceX weighing a public listing this year, the situation in Iran also represents a high-profile showcase for Starlink to investors.

“We’re in this weird early part of the history of space-delivered communications where SpaceX is the only true provider at this scale,” said John Plumb, the former Pentagon space policy chief under President Joe Biden.

“And these repressive regimes think they can still turn off communications, but I think the day is coming where that’s just not possible,” he said.

Victoria Samson, chief director of space security and stability at the think tank Secure World Foundation, said Russia, which has deployed an array of technologies to counter Starlink in Ukraine, might be keen to examine the effectiveness of Iran’s Starlink interference.

“I think a lot of actors are watching how Starlink fares here,” she said.

Thousands of people protesting Iran’s clerical rule are reported to have been killed in the past week, while Tehran’s order to restrict communications makes it difficult to discern the full extent of its violent crackdown on dissent.

Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground, read the report.

Raha Bahreini, an Iran researcher at Amnesty International, said they had verified dozens of videos from Iran, including footage of protesters killed or injured by Iranian forces, and believe that almost all of them came from people who had access to Starlink. She added, however, that the ongoing communications restrictions have impeded human rights organizations’ communications with people in Iran in efforts to assess the scale of the violence.

Starlink is banned in Iran, yet tens of thousands of terminals may have been smuggled into the country, although it remains unclear how many are in use, according to Holistic Resilience, a U.S. nonprofit that has helped deliver Starlink terminals to Iranians and says it is working with SpaceX to monitor what it describes as Iranian attempts to jam the system.

Consumer Starlink terminals are rectangular antenna dishes that come in two sizes – one roughly the size of a pizza box and a smaller “mobile” one the size of a laptop.

SpaceX did not respond to requests for comment.

The Iranian mission to the United Nations in New York declined to comment on Thursday in response to Reuters’ questions.

Iranian Foreign Minister Abbas Araqchi, speaking to Al Jazeera TV on Monday, said the internet had been cut off “after we confronted terrorist operations and realized orders were coming from outside the country.”

Starlink, the first massive internet-from-space constellation of its kind, has emerged as a crucial tool for communications in wartime and remote areas. The network, which drove SpaceX’s $15 billion revenue in 2024, has expanded the geopolitical power of Musk, who in 2022 asserted control over how and where it was being used by Ukrainian troops fighting back Russian forces.

Roughly 10,000 low-orbiting Starlink satellites zipping above user terminals at an orbital velocity of some 17,000 miles per hour (27,360 kph) make its signals much harder to locate and disrupt than traditional satellite systems designed with a larger, single satellite fixed over a given territory.

Iran is likely using satellite jammers to disrupt the Starlink signals, according to Holistic Resilience and other specialists. Iran also appears to be engaging in so-called spoofing, or broadcasting fake GPS signals to confuse and disable Starlink terminals, according to Nariman Gharib, an Iranian opposition activist and independent cyber espionage investigator based in Britain, Reuters reported.

The GPS spoofing wreaks havoc on a Starlink terminal’s connection and slows internet speeds, said Gharib, who analyzed data from a terminal inside Iran.

“You might be able to send text messages, but forget about video calls,” he said.

Though Starlink is not licensed to operate in Iran, Musk has repeatedly confirmed its presence on his social media platform X, spurring a yearslong effort by the Iranian government to counter the service. Amid protests over the death of Mahsa Amini in December 2022, Musk posted that nearly 100 Starlink terminals were active in the country.

Following the 12-day war between Iran and Israel in June, Iran’s parliament passed a law banning the use of Starlink, introducing severe penalties for those who use or distribute the unlicensed technology, according to Iranian state media.

Iran has also pursued diplomatic channels, urging a panel at the United Nations’ International Telecommunication Union last year to force the United States and Norway — where Starlink is internationally registered — to block the service.

At a July meeting, Iran told the board that Starlink’s use in the country is illegal and said an “invading country” had deployed its terminals on drones during a recent attack.

Iran told the board in November that it was struggling to locate and disable the terminals itself.

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