Apple is gearing up to report its fiscal Q3 earnings on Thursday. But as much as investors are tuning in for the results, all eyes—and ears—are expected to lock in on CEO Tim Cook’s remarks about what’s next. And oddly enough, some of the most relevant hints about Apple’s future may have already come from a rival: Google.
During Alphabet’s second-quarter earnings call last week, CEO Sundar Pichai dropped some loaded comments about AI glasses and the future of mobile tech. Depending on how you interpret them, they’re either reassuring or quietly ominous for Apple and its iPhone empire.
Pichai Sees AI Glasses as the Next Big Thing—But Not Yet
Sundar Pichai didn’t say the phone is dead. Far from it. But he did point to a major shift on the horizon. Responding to a question about Google’s partnership with Warby Parker on AI glasses, Pichai said phones will “continue to be at the center of the consumer experience” — for now.
Then he added, “for the next two to three years at least.”
That phrase — “at least” — left a lot of room for interpretation. Some heard comfort: the iPhone’s dominance isn’t in jeopardy this year or next. Others saw warning lights: Google clearly believes a major transition is coming sooner rather than later.
And Pichai didn’t hold back on his excitement.
He described AI glasses as an “emerging category” with “a whole new wave of innovation.” For a company that helped define the smartphone era with Android, those words weren’t tossed around lightly.
Why That’s a Big Deal for Apple Right Now
Apple isn’t just a hardware company. But let’s not pretend the iPhone isn’t its crown jewel. In the first quarter of fiscal 2025, iPhones accounted for 49% of total net sales. And that doesn’t tell the whole story.
A large portion of Apple’s Services revenue — which made up almost 28% of total sales — comes from iPhone users. So does revenue from wearables like AirPods and Apple Watch, both of which are tightly tethered to the iPhone ecosystem.
Put simply, the iPhone is the beating heart of Apple’s business.
So when a tech giant like Google hints at a possible disruption to that dominance, investors take notice. Especially with Apple facing stiff AI competition, slower hardware innovation cycles, and mounting regulatory scrutiny in key markets.
Wall Street Is Watching for Apple’s Next Move
Tim Cook and his team are famously tight-lipped. Still, analysts will be listening closely for any signs about Apple’s long-term product roadmap during this week’s earnings call.
Because here’s the truth:
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Apple hasn’t publicly committed to AI glasses—yet
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It’s been experimenting with spatial computing (see: Vision Pro)
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And investors are eager to know what’s next after the iPhone
Apple rarely tips its hand before it’s ready. But hints have been dropping. At WWDC 2025, Apple Intelligence was the clear star. While it’s launching across devices, the push seemed aimed at solidifying the iPhone’s role for now, not replacing it.
But the future’s coming anyway. And fast.
Apple’s Stock: Still a Giant, But Feeling the Pressure
AAPL shares have had a choppy 2025. They’re down about 1.4% this week, trading near $211 — well off their 52-week high of $260. The company’s market cap remains massive at $3.2 trillion, but growth expectations are cooling.
The iPhone, meanwhile, is maturing.
Yes, Apple is pushing hard into Services. And yes, Vision Pro and AI integration are promising. But none of those have proven they can generate iPhone-level revenue — at least not yet.
Here’s what the numbers tell us:
| Segment | % of Q1 FY2025 Revenue |
|---|---|
| iPhone | 49% |
| Services | 28% |
| Wearables, Home & Accessories | 8% |
| Mac | 8% |
| iPad | 7% |
So, even a small disruption to iPhone sales — say, a consumer pivot to AI glasses — would ripple across nearly every major revenue stream.
That’s why what Pichai said matters so much right now.
Not Panic Time—But It’s Not Business as Usual Either
To be clear, Google’s glasses aren’t launching tomorrow. There’s no hard release date, and the product’s still being developed. But if Alphabet is betting big on AI-powered eyewear, it won’t stay under wraps for long.
Apple could still crush the category if it decides to enter.
Its hardware-software integration, retail dominance, and consumer trust are unmatched. And if anyone can turn something as nerdy as smart glasses into a mass-market hit, it’s Apple.
But they haven’t yet.
So for investors, the coming months — especially comments from Cook and Co. — are going to be critical. Is Apple laying the groundwork for a post-iPhone product? Will it wait to see what Google does first? Or will it continue to bank on the iPhone as its flagship until the market forces its hand?
One thing’s for sure: you can’t ignore what Pichai said. And you definitely shouldn’t ignore what Cook says next.
