Track market-moving stories before they get noisy

Apple NASDAQ: AAPL has rallied sharply since late June, keeping the stock near record territory as investors look ahead to the company’s Q3 2026 earnings report, expected on June 30. At first glance, the setup heading into that report appears relatively straightforward.

Apple Today

$327.19 +12.33 (+3.92%)

As of 02:51 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$201.50▼

$328.53Dividend Yield0.33%

P/E Ratio39.59

Price Target$314.26

Analysts have been busy raising price targets, the stock has been hitting highs, and the market appears to be leaning into the thesis that Apple's ecosystem and pricing power will deliver the goods as its AI strategy ramps up.

Get Apple alerts:

However, not everyone is convinced that this bet is safe. A growing number of voices are questioning whether Wall Street has gotten ahead of itself, pricing in an AI-driven future that Apple hasn't demonstrated it can deliver, while ignoring a set of very real, near-term cost pressures.

That gap between the optimism priced into the stock and the caution running through some of the underlying analysis is becoming harder to ignore, and this month's earnings report threatens to widen it further.

The "Toll Booth" Thesis Has a Hole in ItMuch of the bull case for Apple's AI positioning rests on what's often called the "toll booth" thesis: the idea that Apple doesn't need to build the best AI model because it owns the device and platform through which people will access AI, and can therefore extract value regardless of which model wins. It is a compelling argument, and one we have recently covered through the lens of Apple’s agentic AI opportunity.

The trouble is that the evidence for it actually working in practice is thin. Rather than monetizing AI usage directly, Apple is currently paying other companies for the AI models running inside its own ecosystem. That sounds more like a cost center than a toll booth.

Until that dynamic flips, and until Apple demonstrates it can turn its AI features into meaningful revenue, the thesis remains more theoretical than proven. Investors betting on it are, for now, betting on potential rather than results.

The Cost Pressures Are Not TheoreticalWhile the AI upside remains speculative, the cost side of Apple's story is anything but. Surging NAND and DRAM prices have already forced the company to raise prices across its Mac and iPad lineups, and speculation continues to build that iPhone pricing will follow suit later this year.

The KeyBanc team made this exact point earlier this week, as they downgraded Apple to Underweight—a rare, but worrying, outright bearish stance. The firm's analysts pointed to iPad price increases of $100 to $200 and MacBook increases of up to $300, arguing that products at this level tend to see demand fall by more than the size of the price increase. Their bigger worry is what happens when that same dynamic hits the iPhone. To give a sense of what that could look like, KeyBanc is expecting iPhone revenue growth to slow sharply in fiscal 2027, coming in well below the broader consensus.

Adding to the pressure, KeyBanc also flagged that U.S. carriers may pull back on device subsidies as costs rise, which would likely extend how long customers hold onto their phones before upgrading and could complicate Apple's growth story both domestically and internationally.

The Valuation Leaves Little Room for ErrorOverall MarketRank™86th Percentile

Analyst RatingModerate Buy

Upside/Downside3.8% Downside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.57 Insider TradingSelling Shares

Proj. Earnings Growth9.50%

See Full Analysis

Then there's the valuation itself. Apple currently trades at around 36 times forward earnings, which is one of the highest multiples among its mega-cap technology peers. That feels like a lot to pay for a company that doesn't yet have a clear AI-driven catalyst for either growth or margin expansion.

Add in a China business facing both slowing sales and margin pressures, and the risk-reward balance starts to look increasingly skewed to the downside.

Now, none of this means Apple's underlying business is broken. Its ecosystem stickiness remains one of the most powerful competitive moats in all of technology. That stickiness is arguably now doing more heavy lifting than the hardware itself as competition intensifies.

But stickiness alone may not be enough to continue justifying a premium multiple if Apple doesn’t convince investors in its upcoming earnings report that its AI initiatives are gaining momentum.

How to Think About the Upcoming ReportWith those earnings now just over two weeks away, the report is shaping up as a genuine test of which side of this argument is right. If Apple can show clear signs that its AI features are translating into stronger Services growth, resilient iPhone demand, or improving margins despite cost pressures, the bulls will have concrete evidence to point to.

However, if the report instead confirms the slowing growth and margin compression that skeptics like KeyBanc are forecasting, the stock's recent run toward all-time highs could look increasingly hard to justify.

Should You Invest $1,000 in Apple Right Now?Before you consider Apple, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Apple wasn't on the list.

While Apple currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

Get This Free Report

View of an Apple logo at an Apple store in Paris, France, April 23, 2025. REUTERS/Abdul Saboor/File Photo Purchase Licensing Rights, opens new tab

July 15 (Reuters) - Apple (AAPL.O), opens new tab is looking to buy chip companies to bolster its efforts to make server processors for running AI, ​The Information reported on Wednesday, citing people familiar with ‌the matter.

Here are some details:

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

The iPhone maker has approached chip startups to gauge their interest in a buyout and has spoken with bankers ​about possible deals, the report said.

Apple's interest comes as ​it faces challenges with the performance of its in-house ⁠AI servers, which currently run on internally designed M2 ​Ultra chips, according to The Information.

It had originally planned to ship ​a future version of its AI server chip, known internally as "Baltra", this year, but the project has been pushed back, people familiar with the ​matter told The Information.

Apple did not immediately respond to ​a request for comment. Reuters could not independently verify the report.

Earlier this year, ‌Apple ⁠tried running Google's (GOOGL.O), opens new tab Gemini models on its internal servers as part of a Siri overhaul, but the Mac-based chips could not handle the large model, forcing the company to run ​parts of the ​revamped assistant ⁠on Nvidia (NVDA.O), opens new tab chips in Google's cloud infrastructure, the report said.

Apple has historically avoided large acquisitions, last ​making a deal in January for Q.ai, an ​Israeli company ⁠working on AI technology for audio.

The company had $45.57 billion in cash and cash equivalents as of March 28, the end of ⁠its ​second quarter.

Last week, Apple said it ​plans to spend over $30 billion under a multi-year chip supply deal with Broadcom (AVGO.O), opens new tab, bolstering its ​domestic sourcing.

Reporting by Anhata Rooprai in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Apple AAPL stock fell around 1% on Tuesday after KeyBanc Capital Markets downgraded the iPhone maker, citing slowing hardware demand, weaker growth expectations, and valuation concerns despite the stock's strong performance over the past year.

Shares declined about 1.7% to $311.91 on Tuesday after analyst Brandon Nispel cut his rating on the stock to Underweight from Sector Weight.

He also assigned a $250 price target, implying roughly 21% downside from Monday's closing price.

The downgrade comes as Wall Street remains broadly positive on Apple, with several analysts maintaining bullish ratings and higher price targets.

The stock recovered some of the losses and was trading down 0.46% at the time of writing.

In a research note, Nispel said KeyBanc's spending checks pointed to "another month of below-trend growth" for Apple in June, adding that growth was beginning to fade after receiving a boost in 2025.

The analyst highlighted sluggish iPhone sales, weaker demand for Macs and iPads, and the potential impact those trends could have on Apple's higher-margin services business, including iCloud and Apple Music.

Nispel also argued that the company's valuation leaves little room for disappointment.

He wrote that the combination of slowing hardware demand and softer services growth would make the stock appear "too expensive."

Apple currently trades at about 36 times expected fiscal 2026 earnings, above both its five-year historical average and the broader S&P 500.

According to Nispel's analysis, June indexed hardware spending fell 2% month over month, compared with a three-year average growth rate of 9%, suggesting US demand has normalized following last year's tariff-driven surge.

He also expects slower iPhone production, weaker upgrade activity in the United States, and reduced device subsidies to weigh on future growth.

In his view, consensus forecasts for iPhone, Mac, iPad, Wearables and Services through 2027 are too optimistic and could require downward revisions.

Despite the downgrade, Apple continues to enjoy broad support from analysts.

The stock has gained 1.4% over the past week, 6.4% over the past month and 51% over the past year.

Wall Street currently maintains a Moderate Buy consensus, with an average 12-month price target of $327.20.

Morgan Stanley analyst Erik Woodring reiterated his Buy rating and maintained a $360 price target.

Woodring said Apple's pricing power remains a key advantage, arguing that demand for major products remains resilient even as prices increase.

He said, "demand for key devices such as the iPhone, Mac, and iPad is relatively insensitive to price changes, allowing Apple to raise prices without materially weakening unit demand, while also protecting margins as component costs rise."

He also expects higher iPhone pricing and new AI-focused products to support earnings growth over the coming years.

Price increases and future growth remain in focusApple announced in late June that it would increase prices for MacBooks and iPads as memory component costs continue to rise.

Woodring believes upcoming iPhone price increases, combined with Apple's product roadmap featuring new form factors and AI-enhanced user experiences, could lift both near-term and fiscal 2027 earnings per share.

Evercore ISI analyst Amit Daryanani also maintained a Buy rating on Apple and set a $365 price target.

According to a report, the company plans to skip higher-performance versions of some of its processors along the way.

Omar Gallaga has covered technology, digital culture and other topics for outlets including CNET, NPR, WIRED, Texas Monthly, MSNBC, Consumer Reports, The Washington Post, the Los Angeles Times, The Atlantic and the Austin American-Statesman, where he was a longtime tech reporter, editor and podcaster. He lives in the Texas Hill Country.

3 min read

Apple is changing the way it will handle the release of its next flagship M processors going forward, according to a report from Bloomberg's Power On newsletter.

Power On author Mark Gurman wrote that in a race to get to its M7 generation of processors, which use neural processing to improve AI performance, Apple will skip some iterations of processors along the way. For instance, whereas Apple may have released Pro, Max and Ultra versions of some M-series processors, it may not do so for the next one in line, M6, due out this fall.

Apple's M5 processors for desktop and laptop Mac computers, as well as some iPads, started becoming available in those products in the fall of 2025.

Bloomberg previously reported anticipated changes in the M6 roadmap in June, but is now reporting how Apple's plans for its processor lineup, up to the M8, are being influenced by artificial intelligence, including competition from companies like Nvidia. Gurman points to the development of advanced AI performance for the M7 Ultra processor as one reason for accelerating the chip-release roadmap. An even more advanced M8 processor codenamed Soko is also in the works, according to the report.

A representative for Apple didn't respond to a request for comment.

Apple's long game on AIApple has not been as overtly aggressive with its AI efforts as other tech giants like Microsoft, Google, Meta and OpenAI. But as Gurman suggests in his report, it has been quietly laying the groundwork for its long-term AI goals using technology it developed, even on failed projects such as the canceled Apple Car.

The company has delayed versions of its Siri assistant to refine its AI capabilities while continuing to develop processors that can handle the high demands of on-device AI rather than offloading processing to data centers, as many AI services do.

This strategy has served Apple well in the past: Wait for others to introduce new technology, learn from their mistakes, and then release its own products that are more refined. It's how Apple dominated headphones with its AirPods and what it did in wearables with the Apple Watch.

But with AI, Apple is battling competitors -- including partners like Google -- on several fronts. And that is requiring the company to shift its strategy in several ways. With its processors, Apple is pushing for improvements in memory bandwidth and Neural Engine improvements, said Mahdi Eslamimehr. executive vice president at Quandary Peak Research.

"Skipping the M6 Pro, Max and Ultra to pull the M7 generation forward is the clearest signal yet that AI has displaced CPU and graphics as the organizing principle of Apple's chip roadmap," Eslamimehr told CNET.

That move, he said, is bolstered by the company's hardware chief, John Ternus, taking over as CEO in the fall. "That silicon-first bet now has backing at the very top of the company," Eslamimehr said.

Apple, he said, won't be competing with Nvidia on the data center side of the AI business where it dominates with its processors, but will instead focus on making devices that excel as private, on-device AI computing powerhouses that eventually "would push local performance toward workstation class."

The payoff for Apple power users, he said, will be more powerful hardware-native AI, but it might not be until late 2027 before they get their hands on top-tier Apple M7 hardware.

Laptops

Desktops & Monitors

Computer Accessories

Photography

Tablets & E-Readers

3D Printers

OMAR GALLAGA

Omar Gallaga has covered technology, digital culture and other topics for outlets including CNET, NPR, WIRED, Texas Monthly, MSNBC, Consumer Reports, The Washington Post, the Los Angeles Times, The Atlantic and the Austin American-Statesman, where he was a longtime tech reporter, editor and podcaster. He lives in the Texas Hill Country. See full bio

On Friday, Apple dropped the bombshell news it was suing OpenAI over the alleged theft of trade secrets, claiming that OpenAI stole Apple’s confidential data and engaged in efforts to learn proprietary information while recruiting former Apple employees.

In accusing OpenAI of stealing secrets about Apple’s unreleased products, Apple revealed that a former employee allegedly siphoned reams of sensitive files from the company’s shared network folders, weeks after leaving Apple for a job at OpenAI.

In its complaint, Apple says the former employee, a system electrical engineer named Chang Liu, allegedly “exploited a rare, previously unknown authentication bug” that allowed access to the company’s network. The bug is classified as a zero-day vulnerability, meaning that Apple had no time to fix it before it was allegedly exploited.

Apple has since fixed the bug and said it terminated the employee’s access once it learned of this “security breach.” In its complaint, Apple said the bug could have allowed a “few other” people to access data on its network, but alleged that only Liu exploited the bug to steal Apple’s confidential information while no longer an employee, citing a check of its server logs. 

The disclosure, while light in detail, highlights the challenges that organizations face with protecting sensitive corporate data after employees no longer work there. Companies often move to immediately cut off departing staff from further access to protect any sensitive information from leaving, including inadvertently. Companies that fail to fully decommission their employees’ accounts can face future security lapses, data breaches, or malicious actions by disgruntled staff.

Apple spokespeople did not respond to an email from TechCrunch with questions about the security vulnerability, how it was exploited, and when the company decommissioned the employee’s credentials.

“LOL… so funny.” In the complaint, Apple alleged that Liu took “dozens of Apple’s confidential hardware-related files” over the course of several weeks while as a new OpenAI employee. 

Apple said the files contained “detailed information about unreleased products, engineering presentations, technical specifications, and proprietary project data.” 

The company claims Liu failed to return the Apple-issued work laptop he had previously used to access Apple’s network, suggesting it was once able to send and receive files from Apple’s internal systems. The complaint said that Liu allegedly claimed to have “another computer.” While he was at OpenAI, Liu also allegedly misused the access of an acquaintance, Yu-Ting Peng, a then-Apple employee who later went to work for OpenAI. Liu allegedly used Peng’s Apple-issued work laptop “while she was still employed at Apple and he was not.”

Apple said that during February 2026, Liu “tried to access Apple’s network storage — a cloud-based file repository containing Apple’s confidential engineering files, project documentation, and other proprietary information.”

Liu had allegedly discovered that he “still could access Apple’s network repository after leaving Apple, the result of a then-unknown authentication vulnerability.”

Apple did not describe the authentication “bug” that Liu allegedly used to access Apple’s network. However, authentication bugs generally refer to flaws in the login process that allow improper access to systems or data, either because of a weakness in how the login mechanism works or due to a misconfiguration, such as overbroad permissions or not decommissioning the login credentials of a former employee. 

Apple wrote in its complaint that when Liu learned he had unauthorized access to Apple’s systems, he did not report the bug to Apple under his employment agreement obligations, nor did he return his Apple-issued work laptop. 

The complaint added that Liu also failed to “delete the program that allowed the access” to Apple’s network. The company did not say what program or app that Liu allegedly used to access Apple’s systems. It’s not uncommon for employees to have tools, such as a work-approved VPN or remote-viewing app, that allow them to access sensitive data from outside of the company’s offices using their credentials.

Given that Liu was previously granted credentials to Apple’s network as an employee, TechCrunch asked Apple when the company decommissioned Liu’s access, but we did not hear back.

Once Liu allegedly gained access to the network share, he wrote to Peng: “LOL, I found out I can access the [network storage], so funny.”

Apple filed its suit in the U.S. District Court for the Northern District of California in San Jose, and has demanded a jury trial. OpenAI previously said it has “no interest in other companies’ trade secrets.”

The case, if it proceeds, could begin this year.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Apple's decision to sue OpenAI marks one of the biggest legal confrontations yet in the artificial intelligence industry, transforming what was once a strategic partnership into an increasingly bitter rivalry.

The iPhone maker alleges that OpenAI systematically acquired Apple trade secrets to accelerate its ambitions in AI hardware, accusing the ChatGPT creator of using former employees, recruiting tactics, and supplier relationships to gain access to confidential information.

The lawsuit filed on Friday comes at a time when the battle in artificial intelligence is expanding beyond software models into consumer devices, making hardware the next major competitive frontier.

Here is a closer look at what Apple's lawsuit is about, why it matters, and what it could mean for the AI industry.

Apple's complaint alleges that OpenAI orchestrated a broad campaign to obtain confidential information relating to Apple's unreleased technologies, manufacturing processes, and products.

According to the lawsuit, OpenAI relied heavily on former Apple employees and supplier relationships to accelerate development of its own hardware products.

"Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple's secret and confidential information regarding our unreleased technologies, processes, and products," an Apple spokesperson said.

OpenAI has denied the allegations.

"We have no interest in other companies' trade secrets," OpenAI spokesperson Drew Pusateri said.

"We remain focused on building innovative technology that empowers people everywhere."

Apple is seeking a court order preventing OpenAI from possessing or using its confidential information and wants the AI company to return any Apple intellectual property it may possess.

The lawsuit represents a remarkable reversal in the relationship between the two companies.

In 2024, Apple announced a major partnership with OpenAI that integrated ChatGPT into iPhones, iPads, and Macs as part of its Apple Intelligence initiative.

That alliance, however, has steadily weakened.

Last month, Apple unveiled a revamped Siri powered by Google's Gemini AI model rather than ChatGPT, signalling a shift in its AI strategy.

Meanwhile, OpenAI has increasingly moved toward building its own consumer hardware ecosystem.

The turning point came when OpenAI agreed to acquire io Products, the hardware startup founded by legendary former Apple designer Jony Ive, in a deal valued at $6.4 billion.

The acquisition made clear that OpenAI intended to compete directly in hardware rather than simply provide AI software.

"OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," Apple said in its complaint.

Much of Apple's complaint focuses on former executives who later joined OpenAI.

Among those named is Tang Tan, OpenAI's chief hardware officer and a former Apple vice president.

Apple alleges Tan directed Apple employees interviewing with OpenAI to disclose confidential information.

"He has directed job candidates still working for Apple to bring 'actual parts' from Apple to their interviews for 'show and tell' sessions in which he and his team at OpenAI can elicit still more Apple confidential information," Apple alleged.

The lawsuit also names former Apple employee Chang Liu, alleging he stole an Apple laptop before joining OpenAI.

According to the lawsuit, Liu allegedly left Apple with three key assets: a company-issued MacBook that was never returned, an ongoing relationship with an Apple employee who continued sharing internal information, and, most significantly, knowledge of a software flaw that gave him continued access to Apple's internal file servers.

"LOL, I found out I can access the (network storage), so funny," Liu allegedly wrote to his former Apple colleague, Alyssa Peng, Bloomberg reported.

Liu then used that access to download presentations, hardware designs, manufacturing details and testing procedures – while already working at OpenAI, Apple alleges.

According to Apple, OpenAI also coached departing employees on how to avoid Apple's internal security procedures when leaving the company.

The complaint notes that more than 400 former Apple employees now work at OpenAI.

"That OpenAI now employs people who were once entrusted with Apple's trade secrets does not entitle OpenAI to use that information to jumpstart its hardware efforts," Apple wrote.

The complaint goes beyond employee recruitment.

Apple alleges OpenAI sought confidential information from Apple's manufacturing partners and suppliers.

One allegation claims OpenAI asked a hardware supplier to reproduce a proprietary metal-finishing technique developed by Apple while leading the supplier to believe Apple had authorised the work.

The company also claims that Tang Tan carried confidential information relating to Apple suppliers after leaving the company.

Apple said it first raised concerns with OpenAI in February, writing to the company about what it believed was the misuse of confidential information.

According to the complaint, OpenAI did not respond.

The lawsuit reflects a broader shift underway in artificial intelligence.

While AI companies initially competed by building increasingly powerful language models, attention is now turning toward dedicated AI devices that could reduce dependence on smartphones.

OpenAI's acquisition of Jony Ive's startup signalled ambitions to create new categories of AI hardware.

For Apple, whose business remains centred around the iPhone, such efforts represent a potential long-term competitive threat.

"Apple sees OpenAI moving from partner to potential rival, while OpenAI is trying to reduce its dependence on the iPhone and build a direct relationship with consumers," PP Foresight analyst Paolo Pescatore told Reuters.

"Even if the allegations are not proven, the lawsuit could delay OpenAI's hardware ambitions and further weaken what is already becoming an increasingly fragile partnership."

Does Apple have a history of such lawsuits?Yes.

Apple has previously taken legal action against former employees whom it believed misused confidential information.

In 2019, it sued former chief chip architect Gerard Williams III after he left to establish semiconductor startup Nuvia.

Apple eventually dropped that case in 2023.

The current lawsuit also recalls one of the company's most famous legal battles under Steve Jobs.

Jobs famously described Google's Android operating system as "a stolen product" and vowed to wage "thermonuclear war" against it.

According to accounts published at the time, Jobs said he would "spend every penny of Apple's $40 billion in the bank, to right this wrong."

Some observers see Apple's action against OpenAI as a similar attempt to slow an emerging competitor before it can reshape the consumer technology landscape.

Legal experts say Apple has raised serious allegations, but proving them may not be straightforward.

Mark Lemley, a professor at Stanford Law School, said the case could become significant if Apple can demonstrate that confidential documents were actually taken and used.

"But if Apple's claims that the employees took confidential documents with them — and that OpenAI is using those documents — are true, that is a problem for OpenAI," Lemley said in a Reuters report.

At the same time, he noted that hiring former employees is not illegal in California, where employment laws have historically encouraged labour mobility.

Rutgers Law School professor Camilla Hrdy said the dispute could prove unusually complex because most previous AI trade-secret cases have focused on software rather than hardware.

"These trade secret lawsuits are frequently brought in the tech space, and we usually learn much, much more as the case develops. OpenAI is not a defendant that can't afford to defend itself," Hrdy said.

Regardless of the eventual outcome, the lawsuit underscores how the AI race is rapidly expanding beyond algorithms into hardware, manufacturing and intellectual property, making the competition between technology giants increasingly resemble the smartphone wars that defined the previous decade.

A person points to an iPhone during Apple's event at the Steve Jobs Theater on its campus in Cupertino, California, U.S. September 9, 2025. REUTERS/Manuel Orbegozo /File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesApple alleges coordinated effort to steal designs and manufacturing processesMore than 400 former Apple employees now work for OpenAI, Apple saysOpenAI bought io Products last year in a $6.5 billion ​dealTensions between Apple and OpenAI have simmered for monthsJuly 10 (Reuters) - Apple (AAPL.O), opens new tab on Friday sued OpenAI ‌and two former employees, alleging misappropriation of its trade secrets to benefit the ChatGPT-owner's foray into consumer hardware, in a dramatic escalation of already simmering tension between the two companies.

The complaint, filed in the U.S. District Court for the Northern District of California, alleges a coordinated effort to steal Apple's confidential information, including product designs, manufacturing processes and ​supply chain strategies.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

OpenAI did not immediately respond to a request for comment.

The lawsuit was filed against Chang Liu, a former senior system ​electrical engineer, and former Vice President of Product Design for iPhone and Apple Watch Tang Yew Tan, as well ⁠as OpenAI Foundation, OpenAI Group PBC and io Products. Neither immediately responded to a request for comment.

Apple alleged that Liu failed to return a ​company-issued work laptop and later used an authentication bug to access Apple's internal network, downloading "dozens of Apple's confidential hardware-related files."

The iPhone maker also claimed that OpenAI’s ​hardware chief Tan had been "methodically using Apple’s confidential information to benefit OpenAI" by emailing himself information about Apple suppliers and internal industry summaries before his departure.

Apple alleged that Tan encouraged Apple employees to bring parts from Apple to job interviews at OpenAI for “show and tell” sessions, citing an incident in its filing where one OpenAI job candidate ​allegedly said that he “didn’t even know we could take those from the office.”

More than 400 former Apple employees now work for OpenAI, Apple said in ​the filing, saying that “it is not surprising” that some of them have knowledge of its confidential information.

“That OpenAI now employs people who were once entrusted with Apple’s trade ‌secrets does ⁠not entitle OpenAI to use that information to jumpstart its hardware efforts,” the iPhone maker wrote in its complaint.

Apple also alleged that OpenAI employees sought confidential information from Apple suppliers, at one point allegedly having one of those suppliers carry out what Apple called a secret metal finishing technique on the belief that OpenAI had Apple’s permission to use the technique.

OpenAI bought hardware startup io Products, founded by former Apple designer Jony Ive, last year in a $6.5 ​billion deal, in a push to ​move beyond software into consumer hardware. ⁠Ive is not named in the lawsuit.

TENSIONS BREWED FOR MONTHSTensions between the two tech companies have strained their relationship, as the race to develop AI products has intensified competition for talent and proprietary technology.

In its complaint, Apple claimed it ​wrote to OpenAI in February with concerns that its confidential information was making its way to OpenAI, asking ​to discuss the ⁠matter, but received no reply.

A person familiar with the matter told Reuters in May that OpenAI was exploring legal options against Apple, including notifying the technology giant of a breach of contract but potentially not filing a full lawsuit.

In 2024, Apple announced the integration of its "Apple Intelligence" technology across its apps including Siri and ⁠brought OpenAI's ​chatbot ChatGPT to its devices.

Their partnership allows users to access ChatGPT results through Siri, while ​iPhone users can also sign up for ChatGPT memberships directly from the iOS settings menu.

Apple rolled out a long-delayed overhaul of Siri last month. The update comes two years after Apple ​first promised major upgrades that were repeatedly delayed.

Reporting by Jaspreet Singh in Bengaluru and Stephen Nellis and Deepa Seetharaman in San Francisco; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Jaspreet Singh joined Reuters as a technology reporter in April 2023. He covers a raft of developments including deals, layoffs, management changes, quarterly earnings and the latest in the world of AI. He is interested in stories that bring to light any corporate misconduct, abuse of power and innovation. Jaspreet graduated from Panjab University with a degree in Journalism. If you have any sensitive information or a tip to share, contact him for an off-the-record introduction chat. He will explain what it means to speak with a reporter on background.

Recent price increases for Apple's Mac and iPad devices and any potential hikes in iPhone prices are unlikely to significantly dampen consumer demand, according to JPMorgan, which has raised its price target on the iPhone maker and reiterated its Buy rating.

Analyst Samik Chatterjee said several positive catalysts could help Apple's revenue and earnings outperform current market expectations.

JPMorgan raised its price target on the stock to $345 from $325, implying roughly 11% upside from Tuesday's closing price.

According to JPMorgan, Apple's pricing history across its major product categories indicates only a limited relationship between higher prices and shipment volumes over the years.

The brokerage said Mac computers appear to be the most insulated from pricing changes, supported by a wider range of price points as well as growing demand driven by artificial intelligence-enabled features.

The entry-level iPhone and iPad segments are more sensitive to higher prices, JPMorgan acknowledged.

However, it believes any resulting weakness would create only "modest revenue headwinds" when viewed alongside continued demand for Apple's premium devices.

Apple increased prices across several Mac and iPad models last month by between $100 and $300 after soaring memory chip costs pushed up manufacturing expenses.

The company did not raise prices for iPhones.

The stock initially declined following the announcement but has since recovered strongly, gaining more than 10% over the past five trading sessions.

Wall Street remains optimisticJPMorgan's bullish outlook follows renewed optimism from other analysts.

Last week, Bank of America analyst Wamsi Mohan maintained a Buy rating and a $380 price target on Apple, citing stronger-than-expected App Store revenue growth and continued expansion of its high-margin services business.

Mohan expects services revenue to grow 14% year over year in Apple's fiscal third quarter and believes the company's investments in edge AI and its redesigned Siri architecture could create meaningful monetisation opportunities over time.

Together, the positive analyst commentary has helped improve sentiment around Apple's shares after a relatively subdued start to the year.

In other news, to solve its memory cost woes, the company has begun testing DRAM memory chips produced by China's state-backed ChangXin Memory Technologies (CXMT) for devices sold within China while also lobbying the US government for permission to expand the use of the supplier's products, according to a Financial Times report.

CXMT has emerged as the world's fourth-largest producer of DRAM chips, which are widely used in smartphones, personal computers, and servers.

While the company's manufacturing capacity continues to expand, analysts do not expect it to flood the market immediately.

Ray Wang, a memory analyst at SemiAnalysis, told the Financial Times that much of CXMT's production has already been committed to customers.

Nevertheless, the industry remains wary that China's state-backed investment strategy could eventually mirror what occurred in sectors such as solar panels and electric vehicles, where rapid capacity expansion ultimately drove down prices and pressured international competitors.

AAPL is simultaneously preparing what could become its broadest iPhone lineup in years.

According to supply-chain reports cited by Nikkei Asia, the company plans to launch at least five new iPhone models between the second half of 2026 and early 2027, including its first foldable smartphone.

Apple has reportedly increased planned production of the foldable device to around 10 million units from earlier estimates of 7 million to 8 million units.

The handset is expected to carry a price tag of roughly $2,500.

According to The Motley Fool, selling 10 million foldable iPhones at that price would generate approximately $25 billion in annual revenue, representing a meaningful contribution to Apple's flagship product business, although most of that benefit is expected to materialise during fiscal 2027 rather than this year.

The publication said Apple's strategy extends beyond simply introducing a new premium device.

"Put those pieces together, and the foldable looks less like a blockbuster and more like a halo. It probably won't add much to any single quarter's revenue on its own. What it can do, however, is reset the ceiling on iPhone prices, pulling some upgraders into a pricier tier. In a maturing smartphone market, defending the high end while broadening the lineup to reach more price points could be a serious lever," it said.

I keep hitting the buy button on Apple (NASDAQ:AAPL | AAPL Price Prediction), and the July 30 earnings report is not slowing me down. Every payday, I add a few more shares. The reasons are boring, repeatable, and they stack in my favor over years, which is the profile I want in a core holding heading into retirement. Here is what keeps pulling me back.

A cash machine that pays me to wait Apple generated $111.48 billion in operating cash flow in FY25 and returned $90.71 billion to shareholders through buybacks that same year. In April, the board authorized another $100 billion repurchase program and raised the quarterly dividend 4% to $0.27. Total capital returned since the program began now exceeds $1 trillion. The 0.34% yield looks small in isolation, but paired with ROE of 171.4% and ROIC of 53.3%, I am fine with management compounding capital inside the business instead of mailing it out.

The Services engine keeps widening the moat Q2 FY26 revenue reached $111.18 billion, up 16.6% year over year, with iPhone at $56.99 billion and Services at an all-time record $30.98 billion. Services gross margin ran at 76.7% on a base of over 2.5 billion active devices. That is a high-margin annuity riding on hardware customers already own. Tim Cook described Apple Intelligence as “woven into the core of our platforms”, and MacBook Neo demand is running so hot he flagged the company was “supply constrained”. Greater China grew 28% in the March quarter. Management guided June-quarter revenue growth of 14% to 17% with gross margin of 47.5% to 48.5%. That is what the July 30 report will confirm.

An earnings track record I trust Apple has delivered nine consecutive beats, with the last quarter posting an EPS of $2.01 against a $1.94 estimate. In the 30 days after that May report, shares rose 10.75%, outpacing SPY by 6.09 percentage points. Over the past year the stock is up 45.86%, and over ten years it is up 1,313.91% on a split-adjusted basis. That is the kind of compounding I plan around.

The risk I actually respect China exposure and the supply chain keep me disciplined. Greater China revenue was $20.50 billion last quarter, and Cook warned that “significantly higher memory costs” will pressure the June quarter. Add the CEO handoff to John Ternus effective September 1, 2026 and the execution bar is real. My response: those memory costs are already baked into the 47.5% to 48.5% margin guide, and Ternus is a 25-year Apple veteran inheriting a roadmap Cook publicly called “incredible”.

Why the buy button stays active At a P/E of 40 on a business printing 26.9% net margins at a $4.53 trillion market cap, Apple looks pricey on the screen and reasonable on the cash it will send my account over the next decade. I plan to keep buying through July 30, and the quarter after that, and the one after that.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

BEIJING, CHINA - JULY 7, 2026 - Pedestrians pass by an Apple store in Beijing, China on July 7, 2026. (Photo credit should read CFOTO/Future Publishing via Getty Images)

CFOTO/Future Publishing via Getty Images

This article was written by Doug Nathman, with research by his team at Trefis.

Apple (AAPL) shares fell by 6% on June 25 after the company increased Mac and iPad prices by $100 to $300, citing a memory shortage that CEO Tim Cook referred to as a “hundred-year flood.” In less than two weeks, however, the stock has recovered most of that decline, trading close to 52-week peaks. The market seems to be reassessing Apple’s situation on two counts: how well positioned the company is amidst the DRAM scarcity compared to its competitors and the apparent wisdom of its cautious approach to AI expenditures.

Apple’s Position In The DRAM ShortageDRAM contract prices surged approximately 90% to 95% in the first quarter of 2026. TrendForce anticipates an additional increase of 58% to 63% in the second quarter. Samsung, SK Hynix, and Micron are reallocating wafer capacity toward high-bandwidth memory for AI servers, creating shortages in the consumer supply chain. As a result, Microsoft’s Surface and Xbox lines, along with brands like Dell, HP, and Lenovo, have also raised prices. Apple was among the last significant hardware manufacturers to pass these costs onto consumers, allowing it to gain goodwill and extra time to strategize pricing effectively.

This timing is complemented by margin stability that existed before the memory crisis. In the March quarter, Apple’s gross margin reached nearly 48%, an increase from 46.6% a year prior, driven by a favorable product mix and growth in services. The lock-in effect of Apple’s ecosystem provides added security. A buyer of a MacBook or iPad who already possesses other Apple devices and has been using iCloud, iMessage, and AirDrop for a decade is more likely to accept a $200 price increase more easily than a Windows user would. Scale and supplier relationships enable Apple to endure the pressure more effectively than smaller PC manufacturers.

Furthermore, the iPhone, which is Apple’s largest segment and generates about half of the revenue, in addition to the Apple Watch and AirPods, has not experienced any price hikes thus far. Although prices for iPhone memory have almost certainly risen as well, Apple is likely anticipating the next refresh cycle—expected to concentrate more on high-end devices—to justify a price increase. This strategy has probably been well received by investors.

AI Spending Discipline Likely Aiding Investors.The market may also be starting to recognize Apple’s careful management of AI expenditures. Amazon (AMZN), Alphabet (GOOG), Meta (META) and Microsoft (MSFT) together are on track to dedicate nearly $700 billion in AI capital expenditures this year, pursuing gigawatt-scale training clusters.

MORE FOR YOU

Simultaneously, some enterprise clients are beginning to scrutinize their AI expenditures more carefully. Tesla, for instance, has recently limited employee spending on AI tools, indicating a shifted focus on AI cost management as usage-based pricing reveals expenses more transparently.

This year, Apple’s capex guidance stands at about $14 billion, unchanged from the previous year, and it actually decreased in the March quarter. The market might reward this conservative approach. Apple licenses advanced AI capabilities from providers like Google’s Gemini, conserving cash on its balance sheet while delivering AI features to its existing user base. A slowdown in hyperscaler spending might make Apple’s strategy appear particularly prescient. If AI infrastructure investments ultimately yield lower-than-anticipated returns, Apple’s methodology could seem even more appealing.

However, this does not render Apple invulnerable. Memory expenses are anticipated to remain high through 2027, and additional price increases are still probable, including for iPhones. IDC has already predicted a contraction in the PC market this year due to price sensitivity. The stock’s recovery signifies investor faith in Apple's capacity to navigate this transition, and this confidence must endure the upcoming fiscal third-quarter earnings report. Presently, Apple appears to be the understated victor in the AI sector, facing the same cost inflation as its competitors while maintaining a competitive edge and margin structure that few can mimic.

A disciplined portfolio strategy can mitigate these risks while still engaging in long-term growth trends. The Trefis High Quality (HQ) Portfolio has consistently surpassed its market benchmark since its inception, achieving cumulative returns exceeding 105%.

Apple’s Discounts Boost Market ShareAccording to Counterpoint Research, Apple’s iPhone sales fell 9% year over year during the four-week 618 promotional period, despite a strong sequential rebound.

The company began promotions about a month before the annual shopping festival, offering savings of up to 2,000 yuan (about $290) on the iPhone 17 Pro series through official discounts, e-commerce platform incentives, and trade-in offers. Those promotions helped Apple climb to the No. 2 spot in China’s smartphone rankings.

The research firm said the year-over-year decline reflected tougher comparisons, as Apple had run even more aggressive promotions for the iPhone 16 series during last year’s 618 event.

China’s Smartphone Market Faces Broad SlowdownThe broader Chinese smartphone market remained under pressure. Counterpoint estimated total smartphone sales fell 13% from a year earlier during the promotional period as rising memory prices forced manufacturers to raise prices and scale back discounts. The weaker promotional environment dampened already soft consumer demand.

Huawei Outperforms RivalsHuawei was the standout performer, becoming the only major smartphone brand to post year-over-year growth. The company captured a 21% market share, driven by strong demand for the Enjoy 90 Pro Max and solid performance from the Mate 80.

Counterpoint also noted that Chinese Android vendors, including OPPO, HONOR, vivo and Xiaomi, all posted double-digit sales declines as manufacturers prioritized profitability over aggressive discounting.

Counterpoint Sees More Weakness AheadLooking ahead, Counterpoint expects China’s smartphone market to weaken further in the second half of 2026. The firm said vendors and supply chain partners have signaled that higher prices are likely to persist, while manufacturers continue adopting a profit-first strategy and trimming shipment plans. As a result, Counterpoint forecasts a double-digit decline in China’s smartphone shipments for the full year.

Apple Stock Technical AnalysisApple continues to trade well above its major moving averages, signaling a strong long-term uptrend. The stock sits 6.8% above its 20-day simple moving average, 7% above its 50-day SMA, 13.6% above its 100-day SMA and 16.2% above its 200-day SMA.

The 20-day SMA remains above the 50-day SMA, while the 50-day stays above the 200-day SMA, reinforcing a bullish “golden cross” formation.

Momentum indicators also remain constructive. The moving average convergence divergence (MACD) indicator is above its signal line, suggesting buyers continue to control the near-term trend despite the stock’s extended rally.

On the upside, resistance is near $317.50, close to Apple’s 52-week high of about $317.40. A decisive move above that level could attract additional buying interest. On the downside, initial support sits around $287.50, near the rising 20-day and 50-day moving averages.

Apple Earnings And Analyst OutlookApple is scheduled to report quarterly earnings on July 30. Wall Street expects earnings of $1.89 per share, up from $1.57 a year earlier, on revenue of $108.86 billion compared with $94.04 billion in the prior-year period.

The stock trades at about 37.9 times earnings, reflecting a premium valuation.

Analysts maintain a consensus Buy rating with an average price forecast of $324.16. Recent analyst moves include Evercore ISI reiterating an Outperform rating with a $365 price forecast, KGI Securities downgrading the stock to Hold with a $315 price forecast, and Bank of America maintaining a Buy rating with a $380 price forecast.

Apple Price ActionAAPL Stock Price Activity: Apple shares were up 0.65% at $314.68 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Broadcom Inc. AVGO shares rose 5.3% in trading on Monday after the semiconductor company announced an extension of its long-standing partnership with Apple Inc. through 2031.

The agreement reinforces Broadcom's position as one of the iPhone maker's key chip suppliers.

The new multi-year agreement expands the companies' collaboration on custom silicon products and provides Broadcom with long-term revenue visibility from one of its largest customers.

Apple accounts for about 20% of Broadcom's annual revenue, according to analysts, making the partnership strategically important for the chipmaker.

Broadcom said it has agreed to expand its partnership with Apple through 2031 to develop and supply custom chips, easing concerns over the iPhone maker's reliance on the semiconductor company.

According to Broadcom's recent SEC filing:

"Broadcom Inc. (“Broadcom”) and Apple Inc. (“Apple”) have agreed to expand their long-standing technology collaboration through 2031 by entering into new multi-year long-term agreements for Broadcom to develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products."

The agreement covers a range of custom silicon products that will be used across multiple generations of Apple devices.

Financial terms of the extension were not disclosed.

Broadcom has supplied Apple with key components for years, including radio frequency chips that enable iPhones to connect to cellular networks, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors.

Although Apple has developed several in-house chips, including its C1 modem, it continues to rely on Broadcom for wireless and radio-frequency components.

The companies had previously announced a multibillion-dollar agreement in 2023 for Broadcom to develop and manufacture 5G radio frequency components.

The latest extension builds on that relationship and secures Broadcom's role in Apple's supply chain through the end of the decade.

The extended partnership aligns with Apple's strategy of securing long-term supply agreements with key semiconductor companies to strengthen the resilience of its supply chain.

Apple relies on Taiwan's TSMC, the world's largest contract chipmaker, to manufacture its in-house processors, including the M-series chips used in Mac computers and the A-series processors that power iPhones.

Demand for advanced chips has intensified as artificial intelligence adoption accelerates.

The growth of AI inference—the process by which models respond to user queries—has increased demand for custom chips and advanced processors, creating greater competition for manufacturing capacity.

TSMC has faced heavy demand from AI chipmakers such as Nvidia. Apple Chief Executive Tim Cook said in April that these capacity constraints had affected iPhone sales.

Apple is also in discussions with Intel to manufacture some chips in the United States, although analysts have said volume production is unlikely before late 2027.

The broader semiconductor industry has experienced rising component costs as AI infrastructure spending continues to expand.

Prices for memory and storage chips have climbed sharply in recent months, driven by increasing demand from AI hyperscalers.

Apple raised prices for its MacBooks and iPads in June after memory chip costs surged as much as 98% during the first half of 2026.

Beyond its relationship with Apple, Broadcom has been expanding its presence in the artificial intelligence market by developing AI-specific chips for other major technology companies, including Alphabet and Meta Platforms.

Apple drew a bullish view from Bank of America Securities analyst Wamsi Mohan, who maintained a Buy rating and a $380 price forecast while pointing to services growth, capital returns, and future AI opportunities.

BofA Highlights App Store And Services GrowthMohan said Apple’s App Store revenue rose 3.2% year over year to $8.8 billion in the full fiscal third quarter of 2026, while total iPhone and iPad downloads increased 1.3% to 8.7 billion.

He also noted that App Store dollars per download rose 1.9% year over year to $1.01.

BofA models 14% year-over-year growth for Apple’s total services revenue in the fiscal third quarter of 2026.

Mohan kept his $380 price forecast, based on the 37 times calendar 2027 estimated EPS of $10.27.

Analyst Sees AI And New Products As Upside DriversMohan said BofA remains positive on Apple because of strong capital returns, its potential to become a winner in edge AI, and optionality from new products and markets.

He said the Supreme Court’s decision to hear Apple’s appeal in the Epic Games case is a constructive development as Apple continues to defend its App Store economics.

Mohan also viewed Apple’s new Siri AI architecture, combined with Apple silicon, as an important unlock for future hardware-driven and AI-enabled monetization opportunities.

Technical Picture Remains ConstructiveApple continues to trade in an established uptrend. The stock was trading at $306.64, about 4.3% above its 20-day simple moving average of $294.76 and 13.6% above its 200-day moving average of $270.69. The 20-day average also remains above the 50-day moving average, reinforcing the positive trend.

Momentum indicators also remain supportive. The moving average convergence divergence (MACD) indicator is above its signal line, suggesting buying momentum continues to outweigh selling pressure.

The next technical resistance sits near $317.50, close to the stock’s 52-week high of $317.40. Initial support is around $287.50, near the cluster of the 20-day and 50-day moving averages.

Earnings Remain the Next Major CatalystApple is expected to report quarterly results on July 30. Wall Street expects earnings of $1.89 per share, up from $1.57 a year earlier, on revenue of $108.86 billion compared with $94.04 billion in the year-ago period.

The stock trades at about 35.6 times earnings, reflecting a premium valuation.

Analysts remain broadly positive. Evercore ISI maintained an Outperform rating with a $365 price forecast on June 25. KGI Securities downgraded the stock to Hold with a $315 price forecast on June 22. Bank of America maintained its Buy rating and a $380 price forecast on June 18.

Apple Price ActionAAPL Stock Price Activity: Apple shares were up 4.16% at $306.64 at the time of publication on Thursday, according to Benzinga Pro data.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Apple stock is trading at elevated levels. Where are AAPL shares going? What Is Driving Apple’s Recent Price Increases?Apple raised prices on several hardware products—MacBook Neo, MacBook Air, MacBook Pro, iPad Pro, iPad Air, HomePod, HomePod mini and Apple TV—while leaving iPhone pricing unchanged, citing tightening memory and storage supplies as AI infrastructure spending accelerates. The move lines up with Micron Technology CEO Sanjay Mehrotra’s view that memory markets could stay tight beyond calendar 2027.

Apple’s latest round of increases includes a $100 jump on the MacBook Neo to $699 and a $200 increase on the MacBook Air 512GB to $1,299, raising the stakes on whether demand holds as sticker prices rise. Bigger-ticket moves like iPad Air 128GB going from $599 to $749 and iPad Pro WiFi 256GB from $999 to $1,199 put the margin-versus-units tradeoff front and center.

Apple’s supply strategy is also shifting from cost control to outright availability, with analyst Ming-Chi Kuo warning the "memory supply-demand gap will keep widening through 2027" as AI data centers absorb capacity. Kuo estimates 15% to 20% of memory capacity allocated to consumer electronics in 2026 could be redirected to AI data centers in 2027.

Critical Price Levels To Watch For AAPLApple is sitting right on top of its short-term trend gauges, trading essentially flat versus the 20-day SMA ($294.88) and modestly above the 50-day SMA ($292.67), which often translates into choppy, headline-driven action rather than a clean momentum run. The bigger-picture trend still leans constructive, with price about 6.6% above the 100-day SMA ($276.59) and about 9.1% above the 200-day SMA ($270.33).

RSI is the cleaner momentum lens here: at 50.78, it’s neutral, which fits a stock that’s digesting gains rather than pressing into overbought territory. RSI measures how "stretched" a move is, and this reading implies neither buyers nor sellers have a clear momentum edge right now.

The moving-average structure remains supportive, with the 20-day SMA above the 50-day SMA and a golden cross (50-day SMA above 200-day SMA) that formed in September 2025 still intact. Key turning points to keep in mind: RSI pushed into overbought territory in June (near the recent swing high and 52-week high), while the more recent swing low in April is the last obvious higher-low reference on the chart.

Key Resistance: $302.50 — a nearby pivot area that sits above the current price and can act as the next "prove it" level for a breakout attempt Key Support: $287.50 — a nearby floor that’s below the 20-day/50-day area and would be a key line to defend if the stock slips back into its recent range What Is Apple and How Does It Operate?Apple is among the largest companies in the world, with a broad portfolio of hardware and software products aimed at consumers and businesses. The iPhone drives the majority of sales, and products like the Mac, iPad, and Watch are built around the iPhone as the center of a wider ecosystem.

That ecosystem matters for today’s news because component costs (like memory and storage) can ripple across multiple device lines at once, not just one product cycle. Apple also designs its own software and semiconductors and relies on partners like Foxconn and TSMC to manufacture products and chips, which makes supply-chain constraints and pricing power a recurring theme for investors.

Apple Earnings Preview: What Analysts ExpectLooking further out, the next major catalyst for the stock arrives with the July 30, 2026 (estimated) earnings report.

EPS Estimate: $1.89 (Up from $1.57 YoY) Revenue Estimate: $108.86 Billion (Up from $94.04 Billion YoY) Valuation: P/E of 35.6x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $324.16. Recent analyst moves include:

Evercore ISI Group: Outperform (Maintains Target to $365.00) (June 25) KGI Securities: Downgraded to Hold (Target $315.00) (June 22) B of A Securities: Buy (Maintains Target to $380.00) (June 18) How $1,000 Invested In Apple Would Have PerformedA $1,000 investment in Apple Inc. on July 2, 2021, would have grown to $2,135 by July 1, 2026—a 113.5% return over the period, excluding dividends. The stake swung between $907 and more than $2,000 along the way.

After starting on July 2, 2021, the position hit its period low on January 5, 2023, before recovering and later reaching a period high on June 2, 2026. The journey included a maximum drawdown of -33.4%. By July 1, 2026, the investment finished the five-year stretch at $2,135.

Apple’s 16.4% annualized return outpaced the S&P 500’s 11.6% annualized gain and edged the Nasdaq 100’s 15.3% annualized return over the same holding period. A separate five-year snapshot pegged Apple’s average annual return at 15.04% and put a $1,000 stake at $2,054.35.

Apple Inc. has a market capitalization of about $4.34 trillion. The stock’s current P/E is 35.6, and its current dividend yield is 0.37%.

Apple Benzinga Edge Rankings: Strengths and WeaknessesBelow is the Benzinga Edge scorecard for Apple, highlighting its strengths and weaknesses compared to the broader market:

The Verdict: Apple’s Benzinga Edge signal reveals a quality-and-momentum-led setup with a clear premium-valuation tradeoff. For longer-term bulls, the trend stays intact above the major moving averages, but the low Value score means the stock may need clean follow-through (or strong guidance) to push through resistance.

AAPL Stock Price Activity AAPL Stock Price Activity: Apple shares were trading 1.73% higher at $299.46 at the time of publication on Thursday, according to Benzinga Pro data.

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

In Brief

Posted:

4:57 PM PDT · July 1, 2026

Image Credits:Brian Heater Apple reportedly has plans to release several new iPad Pros and a new MacBook Pro in the first half of next year.

The company is currently working on four models of the new tablet with faster chips, Bloomberg reported. It is also developing a new “entry-level” MacBook Pro, which is internally referred to as K104, the outlet writes. The company is also targeting that same period for the release of its first M7 processor.

The last time Apple released an iPad Pro was in October of last year. In March, the company released a new high-end MacBook Pro and the budget laptop MacBook Neo, albeit the Neo uses the A18 chip, originally designed for the iPhone. This anticipated new MacBook is expected to be a full-fledged Pro.

The apparent product plans come amidst whisperings of other upcoming releases (including, perhaps, a foldable phone) as the company preps for its post-Tim Cook-as-CEO era while also battling supply chain issues that Cook says have forced it to raise its prices. Those price hikes have been substantial in some cases. The MacBook ​Pro with 1 terabyte of storage recently jumped from $1,699 to $1,999, for instance. So if the company is working on more budget-friendly laptops and tablets, this would be a good time to introduce them.

Apple did not immediately respond to our request for more information.

Topics

Subscribe for the industry’s biggest tech news

Latest in Hardware

Key Takeaways Apple is using AI across Creator Studio, services and hardware to support revenue growth.Apple's Services revenues rose 14% to $30.98B in fiscal Q2, making up 27.9% of sales.AAPL shares are up 6.4% YTD, trailing the sector's 15.7%, while trading at a premium valuation. Apple (AAPL - Free Report) is increasingly leveraging AI as a core driver of revenue growth across its services and hardware businesses. Management is positioning Apple Intelligence as deeply integrated into the company’s ecosystem rather than as a standalone AI product. The company recently introduced major updates to Apple Creator Studio, expanding AI-powered capabilities across its creative applications for Mac, iPad and iPhone. The enhancements strengthen integration between apps, allowing users to seamlessly edit images across Keynote, Pages, Numbers, Final Cut Pro and Pixelmator Pro, while Logic Pro gains new music creation tools.

Final Cut Pro now features AI-powered Generate Captions, Edit Detection and Auto Mask, enabling automatic subtitle creation, clip reconstruction and precise subject selection for faster video editing. Additional improvements include enhanced Match Color, Advanced Trimming and new Creator Themes. Motion, Compressor and Final Cut Camera also receive updates that improve animation workflows, immersive video support and professional video capture.

Pixelmator Pro now integrates more deeply with Apple’s productivity apps, enabling direct image editing, AI-powered image generation, vector shape creation and access to a curated Content Hub. Keynote, Pages, Numbers and Freeform also gain new productivity features. Meanwhile, Logic Pro introduces a more accurate Chord ID, a new Producer Project, enhanced Alchemy synthesis capabilities and expanded Beat Breaker tools, offering musicians more powerful and intelligent music production workflows.

Last month, Apple launched new features for services users, including improved Flyover views and Local Lists in Apple Maps, flexible sharing options in Find My, the ability to use Visual Intelligence to split bills with Apple Cash, video podcast support across Mac and tvOS, revamped Shared Albums in iCloud, and a new program for Apple Fitness+. These, along with major updates to Apple Creator Studio, are expected to drive the Services business. In the second quarter of fiscal 2026, Services revenues grew 14% year over year to $30.98 billion and accounted for 27.9% of sales. For the third quarter of fiscal 2026, Apple expects revenues to grow 14% to 17% year over year, with Services expected to rise at a similar pace after adjusting for foreign exchange.

Apple Faces Stiff CompetitionAAPL is facing stiff competition from the likes of Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) in AI. Alphabet and Microsoft are demonstrating significantly stronger near-term AI monetization and infrastructure execution than Apple. This has spooked investors as concerns continue to grow that Apple risks falling behind in the generative AI race despite its large ecosystem and hardware advantages.

Both Alphabet and Microsoft are already translating AI adoption into accelerating revenue growth across core businesses. In the third quarter of fiscal 2026, Microsoft reported that its AI business surpassed a $37 billion annual revenue run rate, growing 123% year over year. AI is driving Alphabet’s Search & Other revenues, which grew 19% year over year in the first quarter of 2026. Gemini Enterprise’s paid monthly active users grew 40% sequentially, while revenues from products built on Google’s generative AI models increased nearly 800% year over year. Alphabet’s total paid subscriptions reached 350 million, driven in part by Gemini app adoption and premium AI plans.

AAPL’s Share Price Performance, Valuation & EstimatesApple shares have returned 6.4% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 15.7%.

Apple Stock’s Performance
Image Source: Zacks Investment Research

The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 30.9X compared with the broader sector’s 23.65X. AAPL has a Value Score of D.

AAPL Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.74 per share, unchanged over the past 30 days, suggesting 17.2% year-over-year growth.
 

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

By PYMNTS  |  June 30, 2026

 | 

The Supreme Court agreed Tuesday (June 30) to hear Apple’s appeal of a lower court ruling that found the company in contempt in its legal battle with Epic Games, Reuters reported Tuesday (June 30).

The ruling that Apple was in contempt came because the judge found that the company violated a judicial order requiring it to make extensive changes to its app store after Epic Games brought an antitrust action against the company, according to the report.

PYMNTS reported in April that the court battle began in 2020 over whether Epic Games could add external payments in its app, enabling the company to bypass the fees charged by Apple’s App Store.

According to the Tuesday report, Apple has argued that it cannot be held in contempt for violating the “spirit” of a court injunction, as opposed to an express provision, and the company has denied that it violated any earlier court orders.

The Supreme Court is expected to hear the case during its term that begins in October, per the report.

Ars Technica reported Tuesday that when announcing it would hear the appeal, the Supreme Court said it would consider “whether a court may hold a party in civil contempt based on a violation of an injunction’s ‘spirit’ where the injunction is silent as to the conduct upon which contempt is based, as the Ninth Circuit holds; or, instead, whether a court must ground a finding of civil contempt on the violation of an order that clearly and unambiguously proscribes the precise conduct at issue, as other circuits hold.”

Apple told Reuters: “This is an important question of law, and we are pleased the Supreme Court will hear our case.”

Epic Games said in a Tuesday post on X: “We’re heading to the Supreme Court where we’ll continue our fight against junk fees Apple charges on third-party payments. Lower courts have rightly found Apple’s fees to be illegal and anticompetitive and we’ll continue to defend free markets.”

Item 1 of 2 A man walks past an Apple iPhone hoarding on a street in Mumbai, India, June 29, 2026. REUTERS/Francis Mascarenhas

[1/2]A man walks past an Apple iPhone hoarding on a street in Mumbai, India, June 29, 2026. REUTERS/Francis Mascarenhas Purchase Licensing Rights, opens new tab

SummaryCompaniesApple counts Tata as key supplier as it diversifies beyond ChinaTata breach has seen files of Apple, Tesla posted on dark webApple has been investigating the matter, Reuters has reportedSupplier list, component names of iPhone 18 Pro in leakNEW DELHI/SAN FRANCISCO, June 29 (Reuters) - Sensitive lists of components and suppliers, ​and photos of Apple's upcoming iPhone 18 Pro models are part of files posted on the dark web by the ransomware group that stole ‌data from the U.S. firm's Indian supplier Tata Electronics, according to documents and a source.

The exposure threatens the carefully negotiated business of building the iPhone, which Apple assembles from a thicket of suppliers worldwide. It could also upset Apple and its relationship with Tata given most of the supplier arrangements are fiercely protected by Apple, and could also hand rivals, counterfeiters and its own vendors a ​view of who makes what.

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

Tata, which both supplies parts and assembles iPhones as a contract manufacturer, is emerging as one of Apple's most important manufacturing partners ​outside China, an expansion that is a cornerstone of Prime Minister Narendra Modi's push to make India an electronics manufacturing powerhouse.

Apple ⁠is reportedly on track to release its iPhone 18 Pro and Pro Max in September. The leak comes at a difficult time for Apple, which last week raised iPad ​and MacBook prices due to soaring memory and storage chip costs, with analysts expecting Apple to increase iPhone prices in the coming months.

Reuters has previously reported the Tata Electronics leak ​of more than 200,000 files on the dark web by World Leaks had files with purported component design papers of older iPhones and some parts of Tesla - both Tata clients. They also included documents of Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab and Qualcomm (QCOM.O), opens new tab, both of which make parts used in iPhones.

New documents reviewed by Reuters show there are at least six files that map many components in the ​iPhone 18 Pro models to the specific company that supplies them. These include details of chips on its main circuit board and parts of the battery and cameras.

Apple ​considers this detail sensitive and is concerned about the documents being shared on the dark web as they relate to unreleased models, according to the person familiar with the matter. The data ‌maps suppliers ⁠to iPhone parts, which Apple does not disclose in its public database of suppliers, the person added.

In all, the documents detail hundreds of parts to be on the upcoming iPhone 18 Pro models.

The records also show where Apple draws a part from several suppliers and where it relies on just a few, laying bare both its bargaining leverage and its vulnerabilities.

Spokespeople for Apple and Tata did not respond to Reuters queries.

World Leaks has previously claimed responsibility for a Nike break-in. Reuters has not verified the authenticity of the ​data and could not immediately reach World ​Leaks for comment.

News website AppleInsider first ⁠reported last week that iPhone 18 Pro documents were part of the Tata leak.

Reuters has previously reported that Apple is investigating the matter and working with Tata on long-term measures. Tata has restricted internal access to sensitive systems as it investigates the leak, and ​hired a global consultant to conduct a forensic audit.

DROP-TEST IMAGESSeveral of the leaked files carried Apple "confidential" watermarks and internal Apple code-names ​consistent with the iPhone ⁠18 Pro generation, according to the source familiar with the matter.

Inside the folder for iPhone 18 Pro files are photographs of iPhones undergoing drop tests at one of Tata's plants, dated early 2026. They depicted a conventional slab-shaped, grey handset with a three-rear-camera setup and the Apple logo.

Reuters could not with certainty identify the model number of the phone, but ⁠the source said ​the photos are of iPhone 18 Pro models.

For Apple and Tata, the breach cuts at the trust ​underpinning their partnership. Apple's move into India rests on its newest major assembler Tata, just as the company increasingly diversifies beyond China.

The bet has fast paid off: India is on track to make 26% of ​the world's iPhones in 2026, up from 6% four years ago, according to Counterpoint, a research firm.

Reporting by Munsif Vengattil, Aditya Kalra, and Stephen Nellis; Editing by Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Based in Bengaluru, Munsif Vengattil leads Reuters' technology news coverage in India. He tracks themes at the intersection of tech, business, and labor. A reporter for nine years, Munsif has written extensively on India's electronics manufacturing aspirations and its tech policy space, AI and election interference, satellite internet, streaming wars, and data breaches. His stories also focus on investigating corporate strategies and revealing India-specific initiatives and challenges of the biggest of tech firms - from Apple, Facebook, and Google, to Foxconn, Samsung, and Nvidia.

Aditya Kalra is the Company News Editor for Reuters in India, overseeing business coverage and reporting stories on some of the world's biggest companies. He joined Reuters in 2008 and has in recent years written stories on challenges and strategies of a wide array of companies -- from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance. He also extensively works on deeply-reported and investigative business stories.

SummaryCompaniesAntitrust case is Apple's biggest regulatory headache in IndiaApple asks for investigation findings to be quashedCompany says it is a 'minuscule player' in IndiaIndia watchdog probe found Apple engaged in 'abusive conduct'NEW DELHI, June 29 (Reuters) - Apple has accused Indian antitrust investigators of "copy-pasting" its rivals' claims and failing to properly conduct its own investigation in concluding the U.S. tech giant breached competition laws, ​calling for the findings to be quashed, regulatory papers reviewed by Reuters showed.

The June 25 Apple (AAPL.O), opens new tab submission, being reported for the first time, marks the sharpest escalation ‌yet in Apple's fight with the Competition Commission of India (CCI), where Tinder-owner Match (MTCH.O), opens new tab and Indian startups are among its opponents.

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

In 2024, CCI investigators privately issued a report saying Apple engaged in "abusive conduct" on the apps platform of its iOS operating system, and wrongly mandated the use of its payment system.

Apple has denied the allegations. It said in its submission that it was a "minuscule player" with an under 6% share of India's smartphone market, ​and the investigation conclusions were built on rivals' claims rather than on the CCI's independent analysis.

Apple said any "forced alterations to Apple's carefully designed App Store could disrupt its ​integrated business model," and argued against any penalties and behavioural remedies that could force it to change its approach.

"The imposition of remedies would ⁠create regulatory uncertainty and could deter investments in India's digital economy," the company added.

The CCI and its head of investigations did not respond to Reuters queries. Apple also did not respond ​to requests for comment.

Similar arguments by other big companies have failed to sway the CCI. In 2023, Alphabet's (GOOGL.O), opens new tab Google argued in its antitrust case that CCI's order risked stalling its growth, but ​the company was later forced to make changes to the way it promoted its Android system, which dominates the Indian smartphone market.

Senior officials from the CCI are due to hold a closed-door hearing with all parties in the case on July 21.

'COPY-PASTING' ALLEGATIONSIn its submission, Apple drew up tables to argue the CCI investigation team had not done its own analysis and instead indulged in "copy-pasting" many submissions from opponents in the case such ​as Match, Walmart's Indian payments app, PhonePe, and Indian rival Paytm.

"The DG (Director General) made no effort whatsoever to independently verify or critically assess these statements, often parroting them verbatim," Apple ​said.

Match, Paytm and PhonePe did not respond to Reuters requests for comment.

Apple also said the CCI investigation reports "blindly replicated" a graphic on worldwide consumer spending on mobile apps and games from an EU ruling against ‌Apple in ⁠2024, even though India faced different market conditions.

A Reuters review of footnotes of the EU order and Indian investigation report showed both referenced data from Statista, an online research website.

In 2023, Google also argued Indian investigators copied parts of a European ruling. "We have not cut, copy and pasted," CCI said at the time.

WATCHDOG SAYS APPLE STALLING CASEApple is facing antitrust challenges around the world, from Europe to the United States.

The Indian case, however, is progressing at a time when Apple faces many supply chain issues, including a data breach at its Indian contract manufacturer Tata.

The watchdog has accused Apple of stalling ​the case for more than two years ​by not submitting responses to the investigation ⁠findings and pursuing a parallel challenge to India's antitrust penalty law, which allows for potential fines of up to 10% of company turnover in the previous three years. The CCI has not said which Apple revenues might be considered but any fine could potentially run into millions of dollars.

Apple submissions show ​it has submitted the "relevant turnover of Apple in India" for fiscal years 2022-24 as required — typically used by the watchdog for penalty ​calculations.

In the submissions, Apple is also ⁠arguing officials failed to grant the tech firm "a single opportunity to record its statements and provide oral evidence" during the probe.

Google was provided several opportunities to defend itself and explain its business model during its Android case, according to the Apple submission.

"While desirable, the CCI's investigation team is under no legal obligation to give an oral hearing if it feels it has conclusive evidence," said Gautam ⁠Shahi, an Indian ​antitrust lawyer at Dua Associates.

"CCI's members will now decide if Apple should have been given that opportunity."

As Apple ​diversifies iPhone manufacturing beyond China, India is a key market — the country is set to make 26% of the world's iPhones in 2026, up from 6% four years ago, according to Counterpoint Research.

If CCI does consider penalties, Apple said ​mitigating factors should be considered, including its "unblemished record" and the fact that it has exported iPhones worth $51 billion from India over the past five years.

Reporting by Aditya Kalra; Editing by Kate Mayberry

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Aditya Kalra is the Company News Editor for Reuters in India, overseeing business coverage and reporting stories on some of the world's biggest companies. He joined Reuters in 2008 and has in recent years written stories on challenges and strategies of a wide array of companies -- from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance. He also extensively works on deeply-reported and investigative business stories.

Last week, in an exclusive interview with the Wall Street Journal, outgoing Apple CEO Tim Cook warned that the memory chip crunch made price increases "unavoidable." He also made what seemed like a promise: "We're willing to use our balance sheet to help be a part of the solution." 

So much for that. On Thursday, Apple rammed through hefty price increases for many of its popular devices. Macs, iPads, the Vision Pro, HomePods and Apple TV products all saw price hikes ranging from 15% to over 30%. Even budget-friendly models, like the MacBook Neo and refurbished devices, weren't exempt, though iPhones and AirPods were spared for now.

Surging memory costs and tight supplies have shattered any belief that one of the most successful tech giants would shield its customers from the wrath of RAMageddon. It's a pattern that's becoming increasingly common across the consumer electronics industry.

Microsoft, Motorola, Samsung and now Apple have all blamed higher component costs -- driven largely by artificial intelligence data centers hogging all the available RAM -- to jack up price tags for everyday people. 

That's not to say that chipflation isn't real. Smartphones rely on DRAM for short-term memory and NAND flash for short-term storage, both of which are also needed for data centers. As these power-hungry AI warehouses face bottlenecks processing larger, high-bandwidth workloads, chipmakers are racing to increase supply, driving prices higher across the industry.

"The unprecedented AI infrastructure growth has changed the semiconductor supply chain, driving insatiable demand," said Neil Shah, vice president of research at the global technology research firm Counterpoint. "The situation is not bound to be better, at least for the next two years."

Are Big Tech profits a mirage?     After months of absorbing higher costs for memory and storage chips, which have quadrupled in price since 2025, Apple says it can no longer absorb the costs. "We have never seen a component price increase this much, this quickly," a company representative told CNET via email. 

But with Big Tech sitting on some of the largest cash piles in history while reporting consistently strong profit margins, many loyal customers are pissed they're being made to foot the bill. Or maybe millions of Americans don't even notice because they're too busy scraping their paychecks to cover groceries, rent, insurance and utility bills, after years of tariffs and inflation. 

On the surface, there's rarely been a better time to be a major technology company. The Magnificent Seven, a moniker for the most dominant companies in the stock market, includes Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta and Tesla. Their massive market capitalizations have masked the otherwise decrepit state of the "regular" economy outside of Wall Street, which feels to most of us like it's running on fumes.

Chipmaker Nvidia has become the world's most valuable company, with a record-breaking valuation of $4.7 trillion. SpaceX's initial public offering, which included AI developer xAI, made Elon Musk the world's first trillionaire (for a week or so, at least). AI developers such as OpenAI, Anthropic and Google have raised millions of dollars in investor funding on the promise that their products will change the world.

Despite not being a major player in the AI gold rush (or perhaps because the company took a more cautious approach to AI spending), Apple maintains industry-leading margins, reporting $112 billion in net income in 2025. For the second quarter of 2026, the company reported 17% revenue growth, beating investor expectations.

Except the financial narrative around AI is starting to shift. As Big Tech sheds trillions to finance ever-larger AI server farms -- and turns to debt markets to get the cash -- it's facing new skepticism. Consumers aren't seeing a clear payoff, and investors want tangible returns. AI is increasingly looking like a gigantic money pit. 

Are price hikes really 'unavoidable'?Even though the silicon crunch is real, shifting the burden to consumers is a choice. If any company had the resources to ride out the chip shortage and absorb higher component costs, it's Apple. The Cupertino company's healthy profit margins have helped it weather supply chain disruptions and rocky economic waves better than others, even during the COVID downturn and the subsequent period of peak inflation. 

Anshel Sag of Moor Insights told CNET that Apple is simply not impervious to global market forces. Sag said he believes the tech giant held off on price hikes as long as it could, thereby gaining a short-term competitive advantage. But now things have changed. 

"We are now so deep (almost a year) into the memory shortage that all attempts to stockpile inventory or anticipate price increases have likely been exhausted, and Apple now has to raise prices," Sag said via email. 

The question, then, is whether Apple could have chosen to absorb lower profit margins rather than pass those higher costs on to consumers. Within Silicon Valley, Apple is hardly struggling -- its net profit margin stands at 27%, according to Macrotrends data. That would make these price hikes more of a calculated business decision rather than an economic inevitability. 

In a post on X, US Senator Bernie Sanders accused Cook of corporate greed, noting that the company spent $310 billion on stock buybacks, which artificially boost stock prices and benefit company execs and highly invested shareholders.

 "These price hikes aren't unavoidable. They're unacceptable," Sanders said.

Corporate greed is Tim Cook, the billionaire Apple CEO, claiming that hiking prices on Apple products by over $200 is "unavoidable" after it made $112 billion in profits last year & spent $310 billion on stock buybacks.

These price hikes aren't unavoidable. They're…

— Sen. Bernie Sanders (@SenSanders) June 25, 2026 Are we subsidizing the AI gold rush?  Over the last year, we've seen major tech conglomerates like Google, Microsoft, Meta and Amazon spend huge sums to build massive computer systems for AI. These hyperscalers paid top dollar to secure the available supply of components for their generative AI and large language models, or LLMs -- which then drove up prices across the rest of the tech industry.

Apple, in the meantime, deliberately sat out the massive AI infrastructure spending race. Instead of burning cash on its own AI data centers and cloud warehouses, the company is now integrating Google Gemini models to power its AI-upgraded Siri, while continuing to rely on its own Private Cloud Compute services. At its annual WWDC event earlier this month, Apple made a renewed push into AI, unveiling its overhauled Apple Intelligence offerings.

But Apple's initial restraint didn't protect it from the supply chain fallout. In last week's exclusive interview with Cook, the Wall Street Journal reported that Apple had lost some of its historic buying leverage with suppliers as AI companies secured market share. Now it has to catch up. 

Cook, who is set to step down as CEO on Sept. 1, had also implied during the interview that the company could lean on its own cash reserves to secure memory supply, which could have shielded customers from price hikes. CNET asked Apple why it didn't end up tapping its own cash reserves, but did not get a response.

"Apple is between a rock and a hard place with this situation," Sag said. "The memory suppliers have all the leverage, and Apple's investors wouldn't let them eat the cost difference." 

That leaves us, the regular folk, subsidizing soaring AI costs, even if we don't use the technology and never asked for it. For years, Apple did fine with a subpar AI virtual assistant while Google pulled ahead. And Siri's shortcomings, long a source of criticism for responses like "I'm sorry, I didn't get that," did little to dent demand for Apple products.

In fact, despite the tech industry's continued push for ubiquitous AI, the tech just isn't enough to entice consumers to switch: Only 11% of smartphone owners would upgrade for new AI features, according to a CNET survey. 

Will tech ever be affordable?  Even if higher input costs justified some of Apple's recent price increases, the markups go well beyond simply covering expenses. Take the entry-level MacBook Neo, marketed as an affordable option for students, which saw a $100 price jump just months after its launch, despite no meaningful improvements in hardware features or functionality.

As my colleague Matt Elliot pointed out, Apple seems to be using the widely reported memory shortage as a convenient cover to raise the Neo's price. In reality, the company exhausted its initial supply of surplus smartphone processors for its budget laptop and now faces higher production costs for new A18 Pro chips. 

While the chip shortage explains some of the pressure on Apple, the company treated it like a blank check. And those massive price hikes could have consequences, including dampening buyer demand, since fewer of us can afford Apple products. Apple could also take a hit to its public image, since rising costs are likely to cement the brand's reputation as "elitist" -- though critics have made that point for years. 

Plus, the unprecedented price spike could also freak out investors -- in fact, it already has. After Thursday's price increases, Apple's stock price plunged by over 6%, its worst single-day drop in over a year. 

Still, the tech giant is likely to conquer these hurdles without taking a major sales hit, according to Francisco Jeronimo, vice president of client devices at IDC. "Where a price rise can push a budget Android buyer in an emerging market to delay a purchase or drop to a cheaper brand," Jeronimo said, "the typical Apple customer tends to absorb it."

In large part, that's because Apple has unique market power stemming from its loyal customer base. It's developed financial resilience from that retention and a tightly integrated ecosystem. When you own an iPhone, Apple Watch, AirPods and a MacBook, abandoning one of them means disrupting your entire digital lifestyle. 

And Apple knows it. 

CNET's Katelyn Chedraoui and Blake Stimac contributed to this story. 

Apple (AAPL - Free Report) ended the recent trading session at $275.15, demonstrating a -6.12% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.

Shares of the maker of iPhones, iPads and other products have depreciated by 5.72% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.57%, and the S&P 500's loss of 1.4%.

The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is expected to report EPS of $1.88, up 19.75% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $108.71 billion, indicating a 15.6% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.74 per share and a revenue of $478.03 billion, indicating changes of +17.16% and +14.87%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Apple is currently a Zacks Rank #2 (Buy).

In the context of valuation, Apple is at present trading with a Forward P/E ratio of 33.52. This represents a premium compared to its industry average Forward P/E of 22.99.

Investors should also note that AAPL has a PEG ratio of 2.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 2.07.

The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 9% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Investors are certainly familiar with just how profitable Apple (AAPL 5.56%) is. Its reported net income margin in the fiscal 2026 second quarter (ended March 28) was a fantastic 26.6%. Pricing power and brand loyalty help drive bottom-line performance.

This kind of financial strength has allowed the business to take care of its shareholders. To be more specific, there are 850 billion reasons (and counting) why investors love Apple stock.

Image source: The Motley Fool.

Apple started its capital returns program in 2012. Since then, the business has repurchased $851 billion worth of shares, a truly massive figure that exceeds the current market capitalizations of all but 18 publicly traded companies.

On April 30, Apple added $100 billion in capacity for additional stock buybacks. This adds to the $64 billion remaining on its prior authorization. In total, this means it won't be long until Apple eclipses $1 trillion in cumulative share repurchases.

Today's Change

(

-5.56

%) $

-16.29

Current Price

$

276.79

All else equal, buybacks introduce a tailwind to earnings per share (EPS) because they reduce the number of shares outstanding. In the past decade, Apple's diluted EPS has risen at a compound annual rate of 15.5%. During that time, the diluted outstanding share count shrank by about 33%.

Apple's stock price has soared 1,140% in the last 10 years (as of June 23). Investors should credit some of this performance to the leadership team's capital allocation policy.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

SummaryCompaniesAI datacenter demand squeezing memory supply for device makersMacBook Neo's starting price rises to $699 from $599Shares fall, analysts warn rivals may need steeper increasesSAN FRANCISCO, June 25 (Reuters) - Apple (AAPL.O), opens new tab raised iPad and MacBook prices on Thursday, saying it could no longer shield customers from soaring memory and storage chip ​costs driven by the AI industry's datacenter buildout.

The move does not affect Apple's main cash cow, the iPhone. But it would take starting price of the Neo - ‌its lowest priced laptop aimed at winning marketshare from affordable Windows and Chromebook laptops - from $599 to $699 months after launch.

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

The increase shows even the world's most valuable consumer electronics company with supply chain relationships that are the envy of the industry is not immune to a memory price surge that has dulled the outlook for smartphone and PC sales.

Memory makers such as Micron (MU.O), opens new tab have in recent months prioritized orders from AI chipmakers like Nvidia (NVDA.O), opens new tab, helping them ​earn record profit but leaving little supply for electronics makers that have been forced to increase prices.

"We have never seen a component price increase this much, this quickly," Apple ​said in a statement. "We have shielded our customers from these increases so far, but we have now reached a point where we need to begin ⁠raising prices on a number of products, including today's increases for iPad and Mac."

Apple hiked the price of MacBook Air with 512 gigabytes of storage rose to $1,299 from $1,099, while the MacBook ​Pro with 1 terabyte of storage rose to $1,999 from $1,699, according to updated prices on its website. The iPad Air with 128 gigabytes of storage rose from $599 to $749, among other changes.

Apple also raised prices ​for both versions of its HomePod smart speaker and Apple TV set-top box. Shares of the company fell nearly 5%, while rival Dell (DELL.N), opens new tab was down more than 8%.

Rival device makers may have to raise prices even more sharply than Apple, whose deep supplier ties have cushioned it from the full hit, several analysts said.

"The memory environment is tough and remains structurally tough for the foreseeable future," said Ben Bajarin, CEO of technology consulting firm Creative Strategies.

Apple ​said in April existing inventories had helped it keep its gross margins above Wall Street expectations but that rising memory costs would start to catch up by the end of this month, ​with profitability expected to fall slightly.

"We expect significantly higher memory costs," CEO Tim Cook said on a conference call with analysts in late April.

"Where we don't give color beyond June, I can tell you that beyond ‌the June ⁠quarter, we believe memory costs will drive an increasing impact on our business," Cook had said.

MEMORY SURGE ADDS PRESSURE ON ELECTRONICS MAKERSApple has not disclosed what steps besides price hike it has taken to address rising memory costs. "We know this is not welcome news, and we are working tirelessly to find solutions," the company said on Thursday.

Analysts expect Apple to increase iPhone prices in the coming months and said the latest hike could prompt some potential buyers to advance their purchase decisions.

"The iPhone isn't spared, its hike is coming," said Nabila Popal, a senior research director at IDC. "It was incredibly ​strategic for Apple to make the price hike ​announcements prior to the iPhone fall launch, ⁠so the headlines at launch is not the price hikes but the value the new phones bring."

Prices of dynamic random access memory, used in virtually all modern tech gadgets, rose as much as 98% in the first quarter of 2026 and is set to jump by another 58% to ​63% in the current quarter, according to industry tracker TrendForce.

That surge, dubbed by some experts as "RAMageddon", has been driven by a boom in ​AI data center construction, with ⁠companies like Nvidia signing long-term deals with memory makers who are racing to increase capacity.

Micron said on Wednesday it has locked in $22 billion in such long-term commitments from customers looking to secure their memory supplies.

The rising costs are expected to weigh heavily on device sales this year, with research firm IDC estimating that the smartphone market would see its biggest-ever annual decline of nearly 14% this year while the ⁠PC market will ​fall 11.3%.

Among the notable bright spots has been the MacBook Neo launched in March, which helped power Apple's strong ​sales forecast for the June quarter and has even led some industry watchers to revise their estimates for PC sales.

With its increased price, it has now lost a $100 advantage over the $699 XPS 13 laptop that Dell unveiled last month especially ​to take on the Neo, while also making it more expensive than some Chromebooks from Lenovo and Asus.

Reporting by Stephen Nellis in San Francisco and Aditya Soni in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

FILE PHOTO: View of an Apple logo at an Apple store in Paris, France, April 23, 2025. REUTERS/Abdul Saboor/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesNearly 40 million iCloud UK users to be included in class actionLawsuit covers a period of seven years from 2018Consumer group Which? to represent ​the millions of Apple usersLONDON, June 23 (Reuters) - Britain's competition ‌tribunal has approved a £3 billion ($4 billion) lawsuit against Apple (AAPL.O), opens new tab over its iCloud storage service, consumer group Which? said on Tuesday, clearing the way for tens of millions of consumers ​to join a collective action.

The Competition Appeal Tribunal granted earlier in ​June a collective proceedings order allowing Which? to represent Apple ⁠users, after rejecting an attempt by the U.S. tech giant to block ​parts of the case.

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

Which? filed the claim in November 2024 and argues Apple ​abused a dominant position by "trapping" users of iPhones and other devices into its iCloud storage service, limiting their ability to switch to rival cloud providers.

The consumer group says Apple ​did this by technically restricting how certain files can be stored, tying ​iCloud to iOS devices and using prompts and system design to steer users towards its ‌own ⁠service, weakening competition and driving up prices.

"Which? wants to make clear that no company, no matter how powerful, can get away with abusing its position," Which? Chief Executive Anabel Hoult said in a statement.

In response to a request ​for comment, Apple said ​the claims ⁠were unfounded.

"We work hard to make iCloud a great experience, but no customer is required to use it and ​customers in the UK have plenty of alternatives to choose ​from," it ⁠said in an emailed statement.

The case is being brought on behalf of nearly 40 million UK iCloud users who used the service between November 2018 and ⁠June ​2026. Which? estimates total damages at around £3 billion, ​with potential payouts of up to £77 per person of the claim succeed.

A trial is expected in ​2028.

($1 = 0.7563 pounds)

Reporting by Sam Tabahriti; Editing by Mark Potter and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles., opens new tab