Apple (AAPL) CEO Tim Cook and company will take center stage on Thursday when the company reports its first quarter earnings results. The Street is looking for a strong showing on the strength of Apple’s iPhone 17 sales and Services segment.

During Apple’s fourth quarter earnings call, Cook said the company anticipates first quarter revenue to be the “best-ever for the company and the best ever for iPhone.” That’s set some big expectations for the company’s results.

But there’s more going on in Apple World than iPhone sales. The company, like many in the tech industry, is contending with a worldwide memory shortage caused by the global AI data center buildout, which is driving up prices on the key components.

That could put pressure on Apple’s margins or force the company to raise iPhone prices in the coming months.

There’s also the matter of Apple’s latest AI moves. Earlier this month, the company and Google (GOOG, GOOGL) issued a joint statement saying that Apple will use Google’s Gemini models and cloud technology to power its AI efforts, including a more personalized Siri due out later this year.

According to Bloomberg’s Mark Gurman, though, there will actually be two updates to Siri. The first will include features Apple originally showed off at its WWDC 2024 event, while the second will feature a new chatbot-like interface meant to go toe-to-toe with the likes of OpenAI’s ChatGPT.

For the quarter, Apple is expected to report earnings per share (EPS) of $2.68 on revenue of $138.4 billion, according to a Bloomberg analyst consensus estimate. That’s an improvement from the $2.40 and $124.3 billion the company saw in Q1 last year.

Importantly, iPhone revenue is anticipated to come in at $78.3 billion, up 13% from the $69.1 billion the segment generated in the first fiscal quarter of 2025. Services revenue is estimated to top $30 billion, up 14%.

Revenue out of China, a weak spot for the company in 2025, is expected to jump nearly 18% year-over-year.

Apple is riding high on the back of its iPhone 17 line of products, Bernstein analyst Mark C. Newman wrote in a note to investors Tuesday.

“Strong iPhone sales continued into December with [calendar Q4 2025 and Q1 2026] sell-through revenue up 12% [year-over-year],” he said.

According to Newman, Apple’s December global sales climbed 7% year-over-year, with performance “driven by the iPhone 17 series alongside steady contributions from the iPhone 16.”

Some of the growth, Newman explained, is a result of customers who purchased new phones during COVID, upgrading to Apple’s latest iPhones six years later, coupled with the introduction of the iPhone 17’s updated styling.