Apple

By Emily Bary A Jefferies analyst says it will take time for smartphone technology to truly support AI. That means sales expectations for the iPhone 16, and perhaps even the iPhone 17, may be too high. Hoping the iPhone 16 will drive a big wave of device upgrades? That view looks “premature,” in the view of one analyst. Jefferies’ Edison Lee assumed coverage of Apple Inc. shares (AAPL) over the weekend, and in doing so, downgraded the stock to hold from buy. By his assessment, it will take some time for artificial intelligence to improve the smartphone experience. “Smartphone hardware needs rework before being capable of serious AI, with likely timeline of 2026/27,” Lee said. He noted that “smartphones lack high-speed memory and advanced packaging tech” that facilitate rapid data transfers, and he said that while companies are trying to improve in this regard, it could take several years before […]

Apple (AAPL) saw a “strong demand start” for iPhone 16 over the weekend, reinforcing Wedbush Securities’ view that the technology giant will be able to break its historical mark for iPhone units in a year and reach a market capitalization of $4 trillion in 2025. The brokerage estimates iPhone 16 sales to be up high single digits and potentially double digits beginning with the December quarter, it said in a Sunday client note. Wedbush believes Apple’s highly anticipated artificial intelligence features for the new iPhone will be released in phases over the coming months. “This is the beginning of an AI driven iPhone supercycle that should enable Apple to break its historical mark for iPhone units in a year and translate into a $4 trillion market cap for Cupertino in 2025,” Wedbush analysts led by Daniel Ives wrote in the note. Based on the brokerage’s recent Asian supply chain checks,

By Alex Eule Fed Day was the highlight of the week, but Apple deserves an honorable mention. Friday was Apple’s annual holiday, with new iPhone 16 models arriving in stores. It’s a joyous moment for Apple fans. For investors, it’s more complicated. The skilled folks on the Dow Jones Market Data team have tracked Apple’s stock around every iPhone release. By now, there’s an ample sample size across 17 years. The stock has declined an average of 0.1% on the day new iPhones are announced. On launch day — a week or two later — shares slip another 0.1%. Over the following week, Apple slightly underperforms the market. Day traders are free to short the iPhone launch, but everyone else should go long — way long. Six months out from iPhone releases, Apple stock has returned an average of 11.7%, eight percentage points better than the S&P 500 index. All

Apple (AAPL) is expected to ship more iPhone 16 units than Wall Street originally estimated, with potentially more customers looking to upgrade due to the company’s artificial intelligence features, according to Wedbush Securities. The brokerage anticipates initial shipments of the upcoming model of the technology giant’s flagship product to be closer to over 90 million units, compared with the market’s forecast of 80 million to 84 million units, it said in a Sunday client note. Wedbush estimates that roughly 300 million iPhones worldwide have not been upgraded in over four years. “With anticipation from the Street and broader tech industry building for Apple’s iPhone 16 AI driven launch in September, our recent Asia checks this week are giving us more confidence this upgrade cycle will kick off a long awaited renaissance of growth for Cupertino over the next year,” analysts led by Daniel Ives wrote in the note. Wedbush maintained

Apple will trigger a much-needed iPhone upgrade cycle when it integrates its artificial-intelligence offering, called Apple Intelligence, into the iPhone 16 this fall, DA Davidson analyst Gil Luria says in a research note. The integration may be one of the most compelling use-cases of generative AI on the consumer-side, and should drive upgrades, particularly as the backwards compatibility of Apple Intelligence only goes to the iPhone 15 Pro, the analyst says. Apple’s iPhone sales were down slightly but relatively flat in 2Q, but the iPhone 15 family is still leading the smartphone category in many key markets, Luria says. Shares rise 3% to $224.83, on a day that the overall tech sector is under pressure

Apple’s (AAPL) fiscal Q3 results and Q4 outlook are unlikely to sway investor sentiment, UBS said in a report sent Friday. “Apple bulls will continue to hang their hat on the view that the iPhone is entering a ‘supercycle’ later this year driven by GenAI and will act as an accelerant to Services growth,” the investment firm said. “On the other hand, more cautious investors will point to a reported [September revenue] guide that is not accelerating on an adjusted basis from the June [quarter],” it said. Following the “largely inline” quarterly results, UBS raised its full-year 2024 EPS forecast to $6.69 from $6.56, and fiscal 2025 EPS at $6.88 versus its previous estimate of $6.86. UBS is projecting iPhone shipments totaling 51 million units in the September quarter, up 4% year over year and largely in line with consensus of 50.7 million units. That would account for about 23%

Apple (AAPL) posted a “modest beat” for fiscal Q3 revenue and earnings, supported by strength across most divisions, and projected Q4 gains in iPhone and service segments signal “the best is yet to come,” BofA Securities said Thursday in a report. Results on from Q3 showed “growth accelerated in iPhone, iPad and wearables and across regions,” while guidance for the September quarter was “conservative,” BofA said. “We see upside in iPhones/Services given the upcoming launch of iPhone 16 with Apple Intelligence,” BofA said. “We further see the potential for significant acceleration of units in the December quarter and overall in FY25 with the rollout of Apple Intelligence.” BofA reiterated its buy rating on Apple, citing “potential for consensus estimates to be revised higher given multiyear iPhone upgrade cycle, tailwinds to gross margins and strong cash flows.” BofA kept its $256 price objective on Apple stock. At least four other analysts

Apple (AAPL) is looking to ship at least 90 million iPhone 16s in the second half of the year, driven by demand for the AI services from its new lineup, Bloomberg reported Wednesday. The company told partners and suppliers that it’s aiming for about 10% growth in shipments of new iPhones compared to their predecessors, a person familiar with the matter told Bloomberg. Apple shipped about 81 million iPhone 15s in the latter half of 2023. Apple expects the addition of new artificial intelligence tools to drive demand for iPhone 16 when it launches later this year. Earlier today, the company said it would include Microsoft-backed (MSFT) OpenAI’s ChatGPT into upcoming updates of iPhones as part of upgrades called Apple Intelligence.

Artificial intelligence may be the phrase of the moment in big tech, but Apple has a giant opportunity in advertising, some analysts say. Needham analysts Laura Martin and Dan Medina raised their price target on Apple stock to $260 from $220, and reiterated a Buy rating on Wednesday. They cited the company’s $110 billion share-repurchase authorization, while peers are devoting dollars to Generative AI instead. “However, over a three-year time frame, Apple’s single-digit revenue-growth rate feels increasingly at risk to us,” analysts wrote. “We believe that Apple should build an advertising business, just as Amazon.com has done.” The team offered a few reasons Apple should jump into advertising. First, total global ad spending this year will be $966 billion, and mobile advertising will be $500 billion, dwarfing the consensus call for Apple’s 2024 revenue of less than $400 billion. Second, ad margins tend to be 70% to 80%, which would

AAPL held its annual WWDC today where it announced incremental new features across iOS and other operating systems, along with Apple Intelligence (AI) tolls it will roll out. We believe Siri received its biggest upgrade ever and comes integrated with free access to ChatGPT for users. AAPL also highlighted the benefits of overlaying AI with consumer data, providing a personal touch, and repeatedly stressing the importance of privacy, announcing its Private Cloud Compute platform (run on Apple servers). Apple Intelligence will be available initially on the iPhone 15 Pros, iPad/Macs with M1 and later, and iPhone 16 devices slated to roll out this fall. Although the event didn’t showcase any major surprises, we are impressed with AI integration across AAPL’s ecosystem (e.g., Siri, rewrite, summarization, Genmoji, image wand, etc.) and see the potential for developers to create disruptive apps in the years to come. Ultimately, that will allow support installed

By Joanna Stern CUPERTINO, Calif. — If I had a dollar for every time an executive said ” Apple Intelligence” at its developer’s conference on Monday, I’d have a steak dinner with all the trimmings. (So, yes, about 60 times.) After nearly two years of sitting out the generative-artificial-intelligence frenzy, Apple finally jumped in the deep end. The company is injecting AI tools throughout coming versions of its biggest platforms: iOS 18, iPadOS 18 and MacOS Sequoia. There’s a new and improved Siri you can even text with. There’s a new partnership with OpenAI that will bring ChatGPT into Apple apps. There are ways to generate new images and emojis on the fly. The company says we’ll start seeing the features this fall, but some of the more ambitious ones might not debut until 2025. So what was Apple’s strategy with all these updates? To show AI integrated into the