Apple Troubles Deepen, Magnificent 7 Dies

Core Insights - Apple Inc. reported strong quarterly results with revenue of $143.8 billion, a 16% increase, and per-share earnings of $2.84, up 19% [3] - Despite impressive iPhone sales, the stock price remained flat, down 5% year-to-date, as investors are concerned about rising costs and the absence of AI products [1][2] - Greater China revenue showed significant growth, reaching $25.5 billion, up from $18.5 billion, indicating market share gains against local competitors [3] Financial Performance - iPhone revenue increased to $85.2 billion from $69.1 billion year-over-year, reflecting strong demand [3] - Overall revenue growth of 16% and earnings per share growth of 19% demonstrate solid financial performance [3] Market Sentiment - Investors are focusing on rising hardware costs, particularly in memory and chips, which are impacting margins across the tech industry [2][4] - There is a growing concern that consumers may expect AI features in future iOS upgrades, which could affect sales if not addressed [4] Competitive Landscape - Apple is successfully taking market share from established local manufacturers in China, despite their AI capabilities [3] - The broader tech industry, including competitors like Microsoft, is facing similar challenges with margin pressures and rising costs [5]