iPhone 17 Won’t Bring ‘Super Cycle’ for Apple (AAPL), AT&T CEO Says

Core Viewpoint - Apple Inc (NASDAQ:AAPL) is under scrutiny following the launch of its new iPhone 17, with mixed expectations regarding its impact on sales and potential for a "super cycle" upgrade [2][4]. Group 1: Market Reactions and Expectations - The new iPhone 17 has generated significant attention, but some analysts, including AT&T CEO John Stankey, express skepticism about its ability to drive a super cycle in sales [2][3]. - Stankey noted that while the new device is important for a large customer base, he does not anticipate it to be groundbreaking or transformative for Apple [3]. Group 2: Financial and Regulatory Challenges - Apple faces mounting challenges, including new U.S. tariffs affecting its China-centric supply chain, which are pressuring gross margins [4]. - Increased regulatory scrutiny of the App Store model in both the U.S. and Europe has introduced greater uncertainty regarding the growth and profitability of Apple's high-margin services business [4]. - Due to these challenges, Baron Opportunity Fund decided to exit its position in Apple, reallocating capital to investments with more favorable risk/return profiles [4].