Apple Forecasts Higher Growth Following $143.8bn Revenue Surge, Driven by iPhone

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January 30, 2026

Apple kicked off fiscal 2026 with a resounding performance forecast of higher-than-expected revenue growth of up to 16%, buoyed by holiday sales and “staggering” demand for its iPhone 17 lineup.

The company reported revenue of $143.8 billion, a 16% increase year-over-year, and diluted earnings per share (EPS) of $2.84, up 19%, both propelled by record-breaking iPhone sales and robust growth in Services. The results, announced Thursday, highlight Apple’s resilience in a maturing smartphone market, with strong rebounds in key regions like Greater China and accelerating momentum in emerging markets such as India.

CEO Tim Cook described the quarter as “remarkable” and “record-breaking,” emphasizing in an earnings call that iPhone demand was “simply staggering,” with revenue soaring 23% to $85.27 billion—exceeding estimates of $78.65 billion and marking the product’s biggest quarter ever.

iPhone sales achieved all-time records across every geographic segment, with the company gaining market share in December and noting double-digit growth in Android switchers. This strength lifted overall Products revenue to $113.74 billion, up 16%.

Services, encompassing App Store, Apple Music, iCloud, and more, set another all-time revenue record at $30.01 billion, rising 14% year-over-year and underscoring the segment’s role as a high-margin growth engine.

The installed base of active devices now exceeds 2.5 billion, a new milestone that bolsters recurring Services revenue and customer loyalty.

Geographically, the Americas led with $58.53 billion in revenue (up 11%), followed by Europe at $38.15 billion (up 13%). Greater China staged a dramatic recovery, with sales jumping 38% to $25.53 billion—far surpassing estimates of $21.32 billion—despite ongoing competition from local rivals and regulatory pressures.

Cook attributed this to record iPhone sales and a surge in upgraders, signaling Apple’s enduring premium appeal in the region.

Japan contributed $9.41 billion (up 5%), while the Rest of Asia Pacific—including India—grew 18% to $12.14 billion, with Cook highlighting India’s accelerating demand as a key growth driver.

Other categories showed mixed results. Mac revenue declined 7% to $8.39 billion, missing estimates of $9.13 billion, amid a broader PC market recovery estimated at 9.3% shipment growth by Gartner.

iPad sales rose 6% to $8.60 billion, beating expectations of $8.18 billion. Wearables, Home, and Accessories dipped 2% to $11.49 billion, below forecasts of $12.04 billion, though Cook noted strong demand for AirPods Pro 3—featuring live translation—caught the company off guard due to supply constraints. Gross margin expanded to 48.2%, above guidance and analyst expectations of 47.45%, reflecting efficient cost management despite rising commodity prices like gold.

Operating income rose 19% to $50.85 billion, while net income reached $42.10 billion. Operating cash flow hit a record $53.93 billion, enabling Apple to return nearly $32 billion to shareholders through dividends and repurchases. The Board declared a cash dividend of $0.26 per share, payable February 12, 2026, to shareholders of record as of February 9.

For the fiscal second quarter (ending March 2026), Apple guided revenue growth of 13% to 16% year-over-year—above consensus estimates of 10%—with gross margins forecast at 48% to 49%. Operating expenses are projected at $18.4 billion to $18.7 billion, slightly above Q1’s $18.38 billion.

Cook flagged headwinds from processor supply constraints at TSMC and a global memory chip shortage, noting: “We’re currently constrained… it’s difficult to predict when supply and demand will balance.”

He indicated the crunch would have a “bit more of an impact” on Q2 margins, with memory pricing “increasing significantly” beyond Q2, prompting exploration of mitigation options. Suppliers Samsung and SK Hynix have warned of worsening DRAM shortages, exacerbated by AI data center priorities.

Strategically, Apple bolstered its AI capabilities with a partnership to integrate Google’s Gemini into an enhanced Siri, slated for 2026 rollout, and a $1.6 billion acquisition of Israeli AI startup Q.ai—specializing in audio AI for interpreting speech, moods, or heart rates from facial cues—marking one of its largest deals.

Cook declined to address potential price hikes due to supply pressures. Shares initially jumped 3.5% in extended trading but pared to a 0.8% gain, as investors weighed supply risks against the beat. eMarketer analyst Jacob Bourne noted: “The backdrop of inflation-fatigued consumers and an ongoing memory chip shortage will pressure hardware margins in coming quarters, making that high-margin services momentum even more vital.”

The quarter’s success alleviates concerns over hardware plateaus, with Apple’s ecosystem strength and AI integrations positioning it for continued growth.

Central Banks Now Hold More Gold Than U.S Treasuries For The First Time in 20 Years

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Ojukwu Emmanuel

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January 30, 2026

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In a development that underscores one of the most significant shifts in global reserve management, gold has officially overtaken U.S. Treasuries in central bank foreign exchange reserves for the first time in at least 20 years.

Recent data show that global official gold holdings, valued at current market prices, have climbed to approximately $5.0 trillion, surpassing $3.9 trillion in foreign official holdings of U.S. Treasuries.

This crossover highlighted by analyses from the World Gold Council, IMF cross-referenced data, and market observers marks a symbolic turning point in how nations define and protect “safe” reserve assets.

Against a backdrop of persistent economic uncertainty, rising geopolitical tensions, and inflation risks, central banks have steadily rebalanced their reserve portfolios. The shift reflects a strategic move toward hard assets and away from debt-based securities.

Since the fourth quarter of 2019, central bank gold holdings have effectively tripled in value, driven by aggressive accumulation and surging prices. Over this period, central banks have added an estimated 4,500 tonnes of gold, including unreported purchases. In contrast, foreign holdings of U.S. Treasuries have remained largely unchanged.

Gold now accounts for roughly one-fifth of all mined gold held in central bank vaults worldwide, reinforcing broader de-dollarization efforts led by major economies such as China and India.

During January, the U.S. dollar fell 2%, its weakest monthly performance since mid-2025, amid geopolitical strains, shifting trade policies, and growing concerns over long-term U.S. fiscal sustainability.

Meanwhile, foreign holdings of U.S. Treasuries have hovered around $3.9 trillion, according to U.S. Treasury International Capital (TIC) data, showing little growth over the same period.

Why Gold Is Gaining Favor

Unlike U.S. Treasuries, which offer yield but carry counterparty, policy, and sanctions risks, gold provides central banks with:

•No default risk

•No dependence on any single government

•A long-standing hedge against currency debasement and geopolitical shocks

As a result, gold now represents a growing share of total reserves, approaching or exceeding 25–26% by market value in some estimates while the dollar’s share of allocated reserves has gradually declined, even as it remains the largest single currency component.

Historically, this shift echoes patterns seen before the 1990s, when gold played a more dominant role in reserves before European central bank sales ahead of the euro’s launch helped elevate U.S. Treasuries.

Implications for the Global Financial System

This development is more than an accounting milestone, it reflects evolving trust in the international monetary system.

•Reserve diversification accelerates: Central banks increasingly treat gold as strategic “heritage money” rather than a passive portfolio diversifier.

•Dollar dominance faces pressure: While the dollar still accounts for roughly 57–60% of allocated FX reserves, gold’s resurgence reduces the relative appeal of Treasury securities.

•Gold price support strengthens: Sustained official-sector demand provides a structural floor under gold prices, even during periods of correction.

Recently, gold prices did experience a sharp pullback, falling more than 8% below the $5,000 level as the dollar strengthened amid expectations surrounding the appointment of a new U.S. Federal Reserve chair.

Even so, gold remained on track for its strongest monthly performance since 1982, after setting multiple record highs.

Major buyers have continued accumulating gold despite elevated prices, with monthly central bank purchases in late 2025 frequently ranging between 40 and 45 tonnes, well above historical averages.

Outlook

Looking ahead, most analysts expect central banks to maintain a structurally higher allocation to gold. While short-term price volatility is likely especially as monetary policy expectations and currency dynamics shift the underlying drivers of gold demand remain intact.

Geopolitical fragmentation, sanctions risk, rising sovereign debt levels, and efforts to reduce over-reliance on the U.S. dollar are expected to sustain official-sector interest. Even if Treasury holdings stabilize rather than decline sharply, incremental reserve growth is increasingly likely to flow toward gold.

As one market observer noted, this rotation is not sudden but the culmination of years of deliberate strategy.

Knowledge: Factor of Production – A Tekedia Mini-MBA Show

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Ndubuisi Ekekwe

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January 30, 2026

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Good People, if you want to understand why companies win or fail, do not begin with the CEO, the workers, or even the technology. Begin with the business model. The business model is supreme because it is the logic of the firm, the invisible engine that determines how value is created, delivered, and captured. Leadership and execution matter, yes, but they operate within the boundaries set by the business model. If that logic is flawed, excellence only helps you fail more efficiently.

Two companies can sell the same product to the same market and end up with wildly different outcomes, simply because they chose different business models. A freemium product versus a subscription version of the same offering will reorganize capital, labor, incentives, pricing power, and customer behavior in fundamentally different ways. The product may be identical, but the destiny of the firm will not be. This is why, in many struggling companies, the real problem is not the product or service, it is the model through which that product is taken to market.

This is also why boards do not just hire CEOs to “manage operations.” They hire CEOs to discover, refine, and operate the right business model for the moment. When Mr. A was relieved after eight straight quarters of declining revenue and Mrs. B stepped in, what changed was not the product and not even the team in any material way. What likely changed was the logic of the firm. Mrs. B re-anchored the company to a business model better aligned with market realities, customer behavior, and competitive forces, and suddenly growth returned.

So, invest time in your business model. Obsess over it. That web product you are building, should it be freemium, subscription-based, ad-supported, or transactional? Each option rewires how your company makes money and how it competes. When you debate these choices, you are not doing accounting; you are designing the economic soul of your company. Get the model right, and execution will amplify success. Get it wrong, and no amount of brilliance will save you.

I am Ndubuisi Ekekwe and from Feb 9, I will be teaching Business Model in Tekedia Mini-MBA. You are invited to register for this academic festival titled “Knowledge: factor of production”. Go here and get big bonus on early bird registration

Microsoft’s Investment in OpenAI Contributes $7.6bn Net Income in Q4

By

Samuel Nwite

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January 30, 2026

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Microsoft’s investment in OpenAI is proving to be a financial masterstroke, with the software giant reporting that its stake in the AI lab contributed $7.6 billion to net income in its latest quarterly earnings.

The announcement eases concerns over investment returns for the software company, which made an early bet in the artificial intelligence company. It also underscores the growing importance of AI partnerships in Microsoft’s overall business strategy and highlights the enormous revenue potential embedded in OpenAI’s technology.

The OpenAI-Microsoft relationship began in earnest in 2019, when Microsoft invested $1 billion into OpenAI, marking one of the largest early strategic investments in the emerging AI sector. The deal gave Microsoft preferred access to OpenAI’s technologies, including its GPT family of language models, and tied the company closely to OpenAI’s cloud infrastructure needs.

Over the years, the partnership has evolved into a multi-billion-dollar ecosystem. Microsoft reportedly holds a 20% revenue share from OpenAI, though neither company has confirmed exact figures publicly. The AI lab also agreed to purchase substantial amounts of Azure cloud computing services, which are now reflected as part of Microsoft’s “commercial remaining performance obligations” (ROs). In the latest quarter, these obligations jumped to $625 billion from $392 billion, with 45% attributed to OpenAI, highlighting the magnitude of committed future revenue.

The partnership was restructured in September 2025 when OpenAI became a public benefit corporation. Part of the renegotiation included OpenAI committing to an additional $250 billion of Azure consumption, further cementing Microsoft’s position as the preferred cloud provider for AI workloads. The arrangement benefits both parties: OpenAI secures access to world-class computing resources, while Microsoft locks in decades of recurring cloud revenue from one of the fastest-growing AI companies.

The latest earnings report shows Microsoft capitalizing on this strategic alignment. Total revenue hit $81.3 billion, exceeding Wall Street estimates of $80.27 billion and up 17% year-over-year. Microsoft Cloud alone reached $50 billion, marking the first time it has surpassed this milestone.

Other AI partnerships, notably with Anthropic, also contributed to the strong results. Commercial bookings tied to Anthropic grew 230%, backed by Microsoft’s $5 billion investment and Anthropic’s $30 billion commitment to Azure compute, with plans for more capacity in the future.

Microsoft’s revenue growth is accompanied by massive infrastructure investments. The company spent $37.5 billion on capital expenditures in the quarter, approximately two-thirds of which was allocated to GPUs and CPUs for Azure’s AI workloads. These short-lived assets are critical to scaling AI services and meeting the computational demands of both OpenAI and other AI partners.

The Strategic Impact

The OpenAI-Microsoft deal exemplifies the shift in enterprise technology, underpinning that AI has moved from experimental R&D to a core driver of revenue growth. By embedding OpenAI’s offerings into Azure and securing multi-year commitments, Microsoft has created a predictable revenue stream with enormous upside potential. Analysts view this as a blueprint for how tech giants can monetize AI at scale while retaining strategic control over the underlying cloud infrastructure.

Most Microsoft business units posted double-digit growth, with the exception of Windows devices, which rose just 1%, and Xbox content and services, which fell 5%. These figures highlight that while traditional software and consumer hardware remain important, Microsoft is betting big on AI to boost its financial performance.

OpenAI is reportedly seeking additional funding at a valuation of $750 billion to $830 billion, underscoring the scale of its influence on the AI market. With committed Azure consumption already in the hundreds of billions and the AI lab’s technology forming the backbone of Microsoft’s AI strategy, the partnership is poised to dominate the sector for years to come.

This means that Microsoft is not just benefiting from AI innovation — it is profiting from the infrastructure and ecosystem that make that innovation possible. Analysts thus expect the company’s early and strategic bets on OpenAI and other AI labs like Anthropic to drive record-breaking revenue growth.

OpenAI Reportedly Seeks $40bn Funding from Nvidia, Amazon, and Microsoft

By

Samuel Nwite

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January 30, 2026

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OpenAI is ramping up efforts to secure one of the largest private investments in artificial intelligence history, targeting up to $40 billion in funding from a combination of core infrastructure partners, sovereign wealth funds, and strategic investors.

The initiative comes as the company seeks to scale its data centers, expand global operations, and accelerate the deployment of increasingly sophisticated AI models.

Sources familiar with the discussions told The Information that Nvidia, Microsoft, and Amazon are expected to lead the initial phase of the funding round. Nvidia could contribute up to $20 billion, while Amazon is reportedly considering a $10 billion-plus commitment. Microsoft, which currently holds a 27 percent stake in OpenAI’s for-profit division, is likely to add several billion more.

In parallel, SoftBank’s Masayoshi Son has expressed confidence in the company, with potential commitments of up to $30 billion, while discussions with sovereign wealth funds such as the Abu Dhabi Investment Authority and MGX are ongoing.

The scale of these investments reflects the growing capital intensity of AI development. OpenAI relies heavily on Nvidia GPUs, cloud infrastructure from Microsoft Azure and AWS, and other high-performance computing resources to operate models at the frontier of AI research. Last year, Nvidia entered into a multiyear agreement to invest $100 billion in incremental $10 billion tranches to expand OpenAI’s data centers, although the deal remains unfocalized.

Analysts say the new proposed $20 billion injection may either supplement this prior agreement or lead to renegotiation of terms, highlighting the delicate balance between funding needs and operational independence.

OpenAI’s reliance on infrastructure providers for financing raises strategic and governance questions. Analysts note that when major investors are also critical suppliers, it concentrates influence and could shape pricing, technology priorities, and market access. It is believed that while these investments unlock rapid scaling, they also increase the risk of vendor dependence. Thus, OpenAI must navigate growth without ceding control over the platforms its models rely on.

The funding drive positions OpenAI to compete aggressively with a growing field of AI players. In the U.S., rivals such as Anthropic, Google DeepMind, and xAI are expanding model capabilities and commercialization efforts, while Chinese companies, including DeepSeek, Moonshot AI, and Alibaba-backed startups, are pursuing multi-modal models and omni-capable AI systems, intensifying global competition for talent, hardware, and market dominance.

Financially, OpenAI’s expansion is aimed at building additional data centers capable of supporting increasingly complex models. Industry sources say that Chinese competitors are investing heavily in local GPU alternatives and high-bandwidth memory to bypass U.S. export restrictions, while U.S. firms like Nvidia and Amazon benefit from these large-scale commitments, creating an intertwined ecosystem where capital, compute, and AI talent converge.

The massive funding round also underscores the central role of AI infrastructure in shaping the market. OpenAI’s models, including GPT and other generative AI offerings, require extraordinary computational resources, making the availability of advanced GPUs, storage, and cloud services as crucial as research talent. Analysts note that OpenAI’s strategy mirrors a broader trend in the AI industry that has seen companies with access to both deep capital and cutting-edge hardware, positioning to accelerate deployment and dominate key commercial applications.

But OpenAI’s aggressive fundraising comes amid intense scrutiny from regulators and investors. Observers caution that securing such large sums may bring pressure to commercialize quickly, potentially influencing product timelines and ethical oversight. Nevertheless, the company maintains that the investment is critical to expand its AI capabilities and bring large-scale automation and AI services into enterprise, government, and consumer markets.

However, the potential participation of Nvidia, Microsoft, Amazon, SoftBank, and sovereign wealth funds is believed to be a signal of confidence in OpenAI’s potential, but also highlights the challenge of scaling AI at the frontier.

Apple Forecasts Higher Growth Following $143.8bn Revenue Surge, Driven by iPhone

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