Apple’s iPhone Problem: Can Services Save The Day?
📱 Apple's results showed weakness in core hardware: iPhone sales growth was minimal, Wearables declined, and sales were flat in Europe and down in China.
⚙️ Services remain the key growth driver, showing double-digit growth and contributing significantly to overall revenue increase, offsetting hardware stagnation.
📉 Despite reporting overall revenue growth (5% per transcript), the heavy reliance on Services and the slowdown in major product categories raise concerns about future growth trajectory.
Apple’s Ascent: Lessons in Holding Winners and Contrarian Buys
📈 Selling Apple stock too early after a 100% gain resulted in missing out on subsequent 900% returns, highlighting the error of cutting winners short.
⏳ Holding quality investments like Apple long-term, rather than trying to time market peaks and troughs or securing small profits, often leads to significantly greater wealth accumulation.
💡 Warren Buffett's successful investment in Apple in 2016, when it wasn't a market darling, demonstrates the value of contrarian thinking and buying quality companies when overlooked.
Apple Bounces Off Key Support, Is More Upside Coming?
📈 Apple demonstrated strength, rising 6.2% this week after finding support near its critical 40-week moving average, a historically significant level.
💰 A position initiated around $180 is now showing a gain of approximately 15-17%, currently trading near $209.
⚠️ Despite the recent bounce, the stock remains below key moving averages, indicating caution is still warranted until these levels are reclaimed.
Apple Pivots Production to India, Restructures AI Efforts
🇮🇳 Apple is significantly accelerating its shift of iPhone production from China to India, aiming to mitigate tariff and geopolitical risks.
🎯 The goal is to import the majority of iPhones sold in the US from India by the end of next year, potentially doubling Indian production to over 80 million units.
🤖 Apple is restructuring its AI efforts, moving its robotics team under hardware leadership, indicating ongoing challenges in keeping pace with AI advancements.
Apple’s Price Inflated by Passive Flows?
⚠️ Apple, along with other large-cap tech stocks ('Magnificent Seven'), disproportionately benefits from automatic inflows into index funds and ETFs, regardless of fundamental value.
🤔 This constant buying pressure, driven by passive investing trends, may be creating a 'passive bubble' effect, potentially inflating Apple's stock price beyond reasonable valuations.
📉 Even active managers feel pressured to own Apple despite potential overvaluation, fearing underperformance if they don't hold the stock, further contributing to price support unrelated to fundamentals.
Apple Faces EU Fines: A Slap on the Wrist Amid Trade Tensions?
🇪🇺 Apple, along with Meta, was fined by European regulators under the new Digital Markets Act (DMA) for antitrust violations.
💰 Apple's fine was €500 million (around $800 million), considered relatively modest compared to potential penalties and past fines under traditional competition law.
🏛️ The size of the fine might be seen as an attempt to avoid further provoking the U.S., given Trump's previous criticism of EU tech regulations and trade tensions.
