Maxim Group's Tom Forte: There's a lot of geopolitical and competitive risk for Apple

Core Viewpoint - Apple is expected to see mid to high single-digit revenue growth for the September quarter, indicating strong performance even before the iPhone 17 launch [1] Pricing Strategy - Apple has reduced the price of the Pro model by $100 and introduced a new product, the Air, at a 9.99% price point, suggesting a future focus on affordable phones while maintaining prices on other models [2] Geopolitical and Competitive Risks - There are significant geopolitical risks due to Apple's reliance on supply chains in China and India, with the latter not receiving enough attention [3] - Competitive risks are highlighted by strong competition in China, particularly from Huawei, and concerns about Apple's AI narrative compared to other tech giants [4][6] AI and Innovation - Apple has historically been slow to adopt new hardware trends, such as foldable phones, raising concerns about its ability to lead in artificial intelligence [5][6] - The most innovative feature in the iPhone 17 launch is related to AirPods, which utilize machine learning for real-time translation, although this may not significantly impact revenue [11][12] Revenue Streams - Services remain a crucial revenue driver for Apple, with growth in this segment being essential to the overall positive outlook for the company [13] Market Performance - Apple's stock has seen a 22% increase over the last three months but is down year-to-date, lagging behind the overall market [16] - Improving relations between the US and China are viewed positively for Apple's market position [17]