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Apple may reveal its biggest quarter ever after iPhone 13, AirPods 3 and MacBook Pro launches

A pandemic, economic uncertainty and an international chip shortage apparently haven’t slowed the tech giant.

Ever since Apple‘s value blew past a trillion dollars a few years ago, analysts and tech industry experts alike have frequently wondered aloud, «How much larger can it get?»

We’ll get an answer Thursday, when Apple announces its fiscal first-quarter sales and tells us how many iPhones, Macs and other products it sold during the holiday shopping season. Apple has built a lot of its business around this period, timing product launches — like those of its well-reviewed iPhone 13, its revamped MacBook Pro laptops, its latest iPads, AirPods 3 and the Apple Watch Series 7 — to maximize sales as people hunt for gifts for family and friends. After the quarter’s December close, investors pushed Apple’s shares so high that the company’s value topped $3 trillion for the first time, despite ongoing supply shortages for chips and other technology.

On average, Wall Street analysts expect the quarter to deliver new all-time financial records of $1.88 per share in profit on $118.38 billion in revenue, according to surveys published by Yahoo Finance. Though that’s impressive, Apple isn’t expected to show as much growth as it did in the 2020 holiday shopping season. That’s when the iPhone 12, Apple’s first 5G-compatible device, helped push the company’s profit up 30%, while sales jumped more than 17%.

That wasn’t all, though. Apple has continuously said over the past year that its Mac computers and iPads were seeing record demand as well, in part thanks to the company’s highly anticipated new M1 «Apple Silicon» chips. That technology scored well among reviewers, including CNET’s, who ran tests that showed performance improvements and increased battery life. «It was zippy,» CNET’s Andrew Hoyle wrote of using the new MacBook Pro to process high-detail photos.

Now analysts are broadly expecting 2021’s holiday shopping season to mark another record for Apple.

«The performance seen by Apple in the quarter was despite an unprecedented chip shortage out of the Asia supply chain,» Wedbush analyst Daniel Ives wrote in a Monday message to investors. Despite Apple’s established position as one of the world’s most highly valued companies, Ives says he still expects to see Apple’s «renaissance of growth» continue and its shares «outperform.»

An Apple spokesman declined to comment ahead of the company’s earnings report.

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No matter what Apple says in its financial report Thursday, the results will be seen as a bellwether across the tech industry, and potentially beyond. But that report may prove an outlier as other companies struggle with supply and worker shortages, disappointing already dour Wall Street investors worried by further inflation, COVID-19’s continued impact on the world, and saber rattling between Russia and the US over Ukraine.

«Given resilient iPhone and Mac demand, we see Apple as a high-quality ‘flight to safety’ name to own during market volatility,» Cowen analyst Krish Sankar wrote in a note to investors. He too labels Apple’s stock at «outperform.»

Apple has long operated one of the most successful supply chains, particularly as it navigated disruptions from the COVID-19 pandemic. Even so, Apple’s executives have said they believe the company has lost out on billions of dollars in sales due to silicon chip shortages and manufacturing problems amid seemingly ceaseless demand.

Rod Hall, an analyst at Goldman Sachs, said he’s «slightly cautious» about Apple’s prospects, considering tech’s continuing challenges with the global supply chain. In a note to investors, he warned that even though Apple may have been able to manage the chip shortages better than most, he’ll be closely listening to executives as they give commentary on a post-earnings conference call.

Read more: US government warns that chip supply crunch remains dire

Apple has also largely escaped the scrutiny that tech giants like Alphabet (née Google) and Meta (née Facebook) have faced over how their respective advertising-heavy business models erode people’s privacy and trust in big tech.

Whatever Apple announces Thursday, it’ll come at a time when investors are questioning Big Tech’s future. Netflix shares have plunged more than 35% this year, driven in part by the company’s own predictions last week that it would add far fewer subscribers than expected in the first months of 2022. Electric-car giant Tesla’s stock, meanwhile, plummeted nearly 28% from $1,199.78 per share at the start of the year, driven in part by the company’s struggles to put out new cars.

It all comes down to the iPhone

The iPhone remains king at the Cupertino, California-based company, even as Apple fans and industry watchers dissect each of the company’s new product lines and business moves.

Last year, the iPhone represented 52% of the company’s $365 billion in revenue, a slight increase from the 50% it represented in 2020 and a slight decrease from the 54% in 2019. That’s part of Apple’s seemingly endless conundrum: Its position as one of the largest companies ever is tied to the iPhone’s success.

Apple has tried to build on that success, announcing ambitious services offerings, including the $5 per month Apple TV Plus, the $5 per month Apple Arcade and the $10 per month Apple Fitness Plus. Its other iPhone add-on-type products like the AirPods headphones and Apple Watch wearable have performed well too, analysts say.

Rumors suggest that Apple’s next big product launch will be a headset, potentially coming this year or next. Many tech executives believe that headsets from Apple, as well as those from Microsoft, Meta, Sony, Google and Magic Leap, could represent the next step in computing beyond the phone. And many companies have already begun preparing.

Over the past year, tech executives from game companies to social networking giants to, yes, even Apple have begun publicly discussing a new term for the types of experiences these headsets will make possible: the metaverse. That’s a catchall description of apps and experiences people can share in connected virtual worlds like a video game.

The metaverse «is an attempt to redefine our entire relationship with the internet, from virtual communities to ownership of digital content. It snakes into gaming, cryptocurrency, NFTs, teleconferencing software and 3D scanning. It’s… a lot,» CNET’s Scott Stein wrote about what he expects from the technology this year. «A year ago, nobody even talked about the idea of a metaverse. Now it’s spread across countless news stories.»

For Apple, though, the metaverse may represent more than the next step in computing: It may finally be the product to take the financial crown from the iPhone.

But don’t expect CEO Tim Cook to spill the beans about his plans while speaking with analysts on a conference call Thursday. Those reveals are typically reserved for Apple’s splashy events, whether in person or entirely virtual, as the events have been during the pandemic.

Instead, when analysts and investors wonder how much larger Apple will get, what they’ll mean is how many more iPhones can Apple sell, as well as maybe iPads, Macs, Apple Watches, AirPods and all sorts of other tech, including the company’s (in)famous $19 polishing cloth.

«We’d expect a bullish installed base update,» Morgan Stanley analyst Katy Huberty wrote in a message to investors, citing upbeat reports from Apple throughout the past year. Though she also rates Apple’s stock at «outperform,» she’ll be listening for any other signs of how the pandemic and supply chain are affecting the company.

Technologies

OpenAI Launches ChatGPT Health: A Dedicated Tab for Medical Inquiries

The company wants you to upload your medical records and connect the wellness apps you use.

ChatGPT is expanding its presence in the health care realm. OpenAI said Wednesday that its popular AI chatbot will begin rolling out ChatGPT Health, a new tab dedicated to addressing all your medical inquiries. The goal of this new tab is to centralize all your medical records and provide a private area for your wellness issues. 

Looking for answers about a plethora of health issues is a top use for the chatbot. According to OpenAI, «hundreds of millions of people» sign in to ChatGPT every week to ask a variety of health and wellness questions. Additionally, ChatGPT Health (currently in beta testing) will encourage you to connect any wellness apps you also use, such as Apple Health and MyFitnessPal, resulting in a more connected experience with more information about you to draw from.

Online privacy, especially in the age of AI, is a significant concern, and this announcement raises a range of questions regarding how your personal health data will be used and the safeguards that will be implemented to keep sensitive information secure — especially with the proliferation of data breaches and data brokers.


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«The US doesn’t have a general-purpose privacy law, and HIPAA only protects data held by certain people like health care providers and insurance companies,» Andrew Crawford, senior counsel for privacy and data at the Center for Democracy and Technology, said in an emailed statement. 

He continued: «The recent announcement by OpenAI introducing ChatGPT Health means that a number of companies not bound by HIPAA’s privacy protections will be collecting, sharing and using people’s health data. And since it’s up to each company to set the rules for how health data is collected, used, shared and stored, inadequate data protections and policies can put sensitive health information in real danger.»

OpenAI says the new tab will have a separate chat history and a memory feature that can keep your health chat history separate from the rest of your ChatGPT usage. 

Further protections, such as encryption and multifactor authentication, will defend your data and keep it secure, the company says. Health conversations won’t be used to train the chatbot, according to the company.

Privacy issues aside, another concern is how people intend to use ChatGPT Health. OpenAI’s blog post states the service «is not intended for diagnosis or treatment.»

The slope is slippery here. In August 2025, a man was hospitalized after allegedly being advised by the AI chatbot to replace salt in his diet with sodium bromide. There are other examples of AI providing incorrect and potentially harmful advice to individuals, leading to hospitalization. 

OpenAI’s announcement also doesn’t touch on mental health concerns, but a blog post from October 2025 says the company is working to strengthen its responses in sensitive conversations. Whether these mental health guardrails will be enough to keep people safe remains to be seen.

OpenAI didn’t immediately respond to a request for comment.

If you’re interested in ChatGPT Health, you can join a waitlist, as the tab isn’t yet live.

(Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

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Technologies

I Tested the Honor Magic 8 Pro and Found a Huge Problem With the Camera

I discovered a catastrophic problem with this phone’s cameras and it needs to be fixed fast.

I’ve found a big problem with the Honor Magic 8 Pro’s camera that urgently needs addressing. I’ve taken hundreds of test photos in my weeks with the company’s latest flagship phone, and while plenty of them are perfectly decent, many of the images I’ve taken with the ultrawide lens display horrendous image processing issues around the edges that ruin them completely.

I discovered the issue when I first got the phone late last year, and while it’s had several significant software updates since then, the problems persist. So what’s gone wrong? It’s possible that I’m monumentally unlucky and happen to have been given a broken unit. If so, I fully expect the replacement models I’ll be testing to be free of any issues. Or, maybe it’s a more widespread problem and I’ll see the same issues cropping up again. I personally think it’s more likely to be an issue at the software level, and as such, it could be a simple fix for Honor to push out in the coming days and weeks.

I’ve spoken to Honor about this and, unsurprisingly, the company is keen to say that this isn’t widespread, stating «Our internal investigation confirmed that the issue was limited to an isolated hardware anomaly in that specific early development sample. It doesn’t reflect the hardware or software polish of the final retail units now launching in the European market.» And sure, my test unit was an early non-EU version, but it is also the phone that the company did send me to review. Receiving early prerelease samples is common in the industry and while small hiccups can sometimes be expected, I rarely find such significant problems as this.

Honor is sending additional retail units for further testing and I hope that I’m able to confirm that this isn’t an issue seen on all models. I was prepared to write a full review of this new flagship phone, but these camera issues are severe and raise more questions than answers. I will update this article with more information and my testing results as they become available.

Read more: Best Phone to Buy in 2026

Even if it is an isolated incident, it’s still disappointing to see such significant problems on a new phone, especially a flagship that costs £1,099 in the UK. Honor doesn’t officially sell its phones in the US, but for reference, that price converts to roughly $1,480. 

The phone does have some positives. I like its processor performance and display, for example, which I’ll come on to later. But the camera issues I’ve seen mean I can’t recommend buying this phone until it’s clear whether they’re limited to my review device or if they’re issues common across all models. 

Let’s take a closer look at what’s going on.

Honor Magic 8 Pro camera troubles

Taken with the camera’s standard zoom, the shot above is fine — there’s a decent amount of detail and the exposure is even overall. 

But switch to the ultrawide mode and things go horribly wrong. There’s a vibrant purple fringe around the edge that’s full of image processing artifacts that ruin the shot. 

It’s not a subtle problem; it’s a huge red flag that something is very wrong with this phone. 

For reference, here’s the iPhone 16 Pro’s ultrawide shot. Notice the difference? 

As you can see, it’s not an isolated incident. It seems to be more apparent when there are areas of shadow in the edges. It makes me suspect that the phone is seeing these dark patches and trying — and failing — to brighten them and add detail back into the scene. It’s not dissimilar to the early problems I found on Google’s Pixel 8 Pro, which also struggled with shadow detail, suggesting to me that this is a software fault, rather than a mechanical problem with my unit. 

It also doesn’t seem to affect the ultrawide lens when recording video, which again suggests it’s not a hardware issue as I’d expect to see the same problems from the lens in any mode. The downside of that is that it could theoretically affect all models of the Honor Magic 8 Pro. However, the big upside is that software problems can be easily remedied with over-the-air updates.

To be honest, I don’t love the camera elsewhere, either. The image processing has gone overboard in this image, brightening the shadows and trying to rescue the highlights in the background excessively. It’s resulted in an over-processed image that looks unnatural. 

The iPhone 16 Pro’s attempt has allowed those shadows to remain what they are — shadows — and I vastly prefer this version as a result. 

I’ve also noticed that there can be significant color shifts when switching between the main and ultrawide lenses, which I would again prefer not to see on a camera phone of this price. 

However, this could be attributed to the same software processing issues I’ve already discussed, so I’ll have to leave my verdict on the camera for when I’ve done more testing. 

On the upside, this shot of the Tennents brewery in Glasgow looks good. 

And I like the colors and tones in this sunset scene in Edinburgh. So it’s not all bad — it can take a decent photo sometimes. So what about the rest of the phone?

Honor Magic 8 Pro: Display, performance and battery life

I like the phone’s 6.71-inch display, which is bright and vibrant. It’s lovely for gaming, too, thanks to its max 120Hz refresh rate. It’s powered by Qualcomm’s latest Snapdragon Elite Gen 5 processor, which puts in some of the best scores we’ve ever seen on our benchmark tests for both processor performance and graphics processing. 

It certainly feels nippy in everyday use. Games like Genshin Impact, unsurprisingly, played smoothly at max graphics settings. The phone runs on a 6,270-mAh battery, which, while sizable, only gave average results on our battery drain tests. Battery performance sits alongside phones like the Galaxy S25 or Google Pixel 10, but it’s a big step below the iPhone 17 Pro Max or OnePlus 15. 

If it feels like I’m glossing over the rest of the phone somewhat, it’s because I am. With the issues I’ve seen so far, it’s possible that there may be other early teething troubles elsewhere, so I’m going to hold off giving any kind of definitive verdict on any part of the phone until I’ve tested more models and have a full appreciation of what the phone is really like to use. 

Honor Magic 8 Pro: Should you buy it? 

Right now, I absolutely don’t think you should. The issues I’ve seen with the camera are significant and badly need addressing. It could be that it’s a simple software fix that can be rolled out in the coming weeks, or it might be an isolated incident that affects me and me alone. I’ll be retesting on multiple devices and it could be that they’re absolutely fine. 

But unless you’re desperate for a new phone today and you absolutely have to have an Honor phone, then I recommend waiting until we’ve got more clarity about how deep these problems lie. 

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Technologies

Today’s NYT Strands Hints, Answers and Help for Jan. 8 #676

Here are hints and answers for the NYT Strands puzzle for Jan. 8, No. 676.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.


Today’s NYT Strands puzzle was almost impossible for me, because it’s all focused on a certain TV show that I have never watched and barely know anything about. (Its fourth season premieres today, if you want to check it out.) If you’re like me, you need hints and answers, so read on.

I go into depth about the rules for Strands in this story. 

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page

Hint for today’s Strands puzzle

Today’s Strands theme is: That’s just reality (TV)

If that doesn’t help you, here’s a clue: Show with plenty of trickery.

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

  • SIDE, HIDE, START, TART, FAITH, TENS, BANS, FATE, SILT, CAST, TRAIT

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers:

  • CASTLE, SHIELD, MISSION, FAITHFUL, BANISHMENT

Today’s Strands spangram

Today’s Strands spangram is THETRAITORS. To find it, start with the T that’s three letters down on the far-left row, and wind across and then down.

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