Apple just one of four Mag 7 names set to report this week and some new iPhone sales data out of China could shed some light on what to expect. Our Steve Kovac has that in today's tech check. Morning Steve.>> Yeah, some good data Carl coming out of here ahead of earnings on Thursday. China though it's still a sore spot for Apple as it loses market share to its big rival out there Huawei. But some good news in this report.iPhone sales are growing again and that's thanks to government subsidies, trade-in deal ...

AI Model Landscape - Deepseek 的出现对美国来说是一个巨大的胜利，如果它只能在华为上运行，情况将大不相同 [1] - 美国技术堆栈成为世界标准对于赢得人工智能竞赛至关重要 [2] - Deepseek 等顶级开源模型已被下载数百万次 [2] Developer Ecosystem - 开发者的支持对于任何计算平台的成功至关重要 [2] - 世界上一半的开发者都在 [2]

Core Insights - Apple is expected to report third-quarter fiscal 2025 results on July 31, with projected revenue growth in the low to mid-single digits year-over-year [1] - The Zacks Consensus Estimate for fiscal third-quarter revenues is $88.92 billion, indicating a 3.67% year-over-year growth [1] - Earnings consensus is set at $1.42 per share, reflecting a 1.43% increase from the previous year [2] Revenue Breakdown - iPhone sales are projected to reach $40.61 billion in the third quarter, suggesting a 3.3% year-over-year growth [4] - Services revenue is expected to grow to $26.96 billion, indicating an 11.3% year-over-year increase [8] - Mac revenues are estimated at $7.16 billion, reflecting a 2.2% year-over-year growth [12] Market Performance - Apple's iPhone accounted for 49.1% of net sales in the second quarter, with sales increasing 1.9% year-over-year to $46.84 billion [4] - Greater China sales are estimated at $15.27 billion for the third quarter, suggesting a 3.7% growth year-over-year [6] - Apple has gained market share in the PC market, with a 9.1% share according to IDC, up 110 basis points year-over-year [10] Competitive Landscape - iPhone sales have faced competition from Chinese vendors like Huawei and Xiaomi, but Apple has seen over 8% year-over-year growth in China recently [5] - Apple's Mac shipment growth rate is the largest among competitors, with a 21.4% year-over-year increase [11] Stock Performance - Apple shares have risen 14.5% year-to-date, underperforming the Zacks Computer & Technology sector's return of 11% [13] - The forward 12-month Price/Earnings ratio for Apple is 28.23X, higher than the sector average of 27.86X, indicating a stretched valuation [16] Future Prospects - Apple's focus on AI is expected to enhance iPhone sales and Mac shipments, with expanded availability of Apple Intelligence in multiple languages [19][20]

Core Insights - Huawei showcased its Ascend chips and AI system at the World AI Conference in Shanghai, highlighting its competitive position in the AI chip market [1][4] - Nvidia, despite previous hopes of re-entering the Chinese market with its H20 chips, did not participate in the conference, indicating potential challenges in its relationship with China [2][3] Group 1: Huawei's Developments - Huawei presented its new computing system, the "Atlas 900 A3 SuperPoD," which connects 384 Ascend chips for AI model training [4] - The Ascend chips, while individually less powerful than Nvidia's Blackwell chips, compensate by utilizing five times more chips in their system compared to Nvidia's GB200 [4] Group 2: Competitive Landscape - Nvidia's absence at the conference contrasts with Huawei's prominent display, emphasizing the latter's growing influence in the Chinese AI market [2][3] - Other Chinese companies, such as Moore Threads and Yunsilicon, also participated in the AI expo, indicating a competitive environment in the semiconductor industry [5]

Core Viewpoint - Apple is facing significant challenges in the Chinese smartphone market, which is critical for its revenue, and needs to find solutions to either regain market share or develop new revenue streams [1][4][18] Market Performance - Apple's market capitalization stands at $3.2 trillion, but the stock has declined by 14% in 2025, underperforming compared to the broader market [2] - The stock has shown a slight recovery with a 6% increase in the last month, but concerns remain about its declining market share in China [4] Market Share in China - Apple's market share in China has decreased from 21% in Q4 2023 to 15% in Q1 2025, while competitors Huawei and Xiaomi hold 19% each [7] - Sales in Greater China dropped by 2% year-over-year in Q2 2025, contrasting with growth in other regions [8] Revenue Breakdown - Total sales for Apple in Q2 2025 were $95.3 billion, a 5% increase from $90.7 billion in Q2 2024 [8] - The Services segment generated $26.64 billion in Q2 2025, up 11.6% from $23.86 billion in Q2 2024, highlighting its importance as a revenue source [12] Product Performance - iPhone sales reached $48.84 billion in Q2 2025, a 6.2% increase from the previous year, but the overall growth has stagnated since 2023 [13][9] - The lack of significant technological advancements in recent iPhone models has led to consumers holding onto their devices longer, impacting sales [14][15] Trade and Production Challenges - Apple is affected by the ongoing trade tensions between the U.S. and China, with potential tariffs threatening profit margins [16][17] - The company is in the process of relocating some production to Vietnam and India, but this transition is lengthy and does not fully mitigate tariff risks [16] Future Outlook - Investors should monitor the upcoming fiscal third-quarter earnings report on July 31, particularly focusing on sales trends in Greater China and their impact on overall revenue [18]

Core Viewpoint - Nvidia is positioned as a leading beneficiary of the AI revolution, with its market valuation exceeding $4 trillion, but faces several internal and external challenges that could impact its growth and profitability [2][22]. Group 1: Nvidia's Market Position and Product Offering - Nvidia has become the most valuable publicly traded company, largely due to its AI-graphic processing units (GPUs) being essential for high-compute data centers, allowing the company to charge a significant premium for its products [2][4]. - CEO Jensen Huang plans to introduce a new advanced AI chip annually, with upcoming models including Blackwell Ultra (2025), Vera Rubin (2026), and Vera Rubin Ultra (2027) [5]. - The CUDA software platform enhances the utility of Nvidia's hardware, fostering customer loyalty within its ecosystem [6]. Group 2: Challenges Facing Nvidia - Internal competition from major customers developing their own AI-GPUs poses a significant risk to Nvidia's growth, as these companies may reduce their reliance on Nvidia's products [9][10]. - President Trump's tariff policies introduce uncertainty, potentially leading to supply chain disruptions and increased costs that could negatively affect Nvidia's margins [11][12]. - The rapid innovation cycle led by Huang may devalue previous generations of GPUs, impacting customer upgrade behavior and gross margins [15][16][17]. - Export restrictions on high-powered AI chips to China have been a concern, although recent policy reversals may allow Nvidia to sell less advanced chips, creating uncertainty about future trade relations [18][19][20]. - Nvidia's high price-to-sales (P/S) ratio, currently at 28, raises concerns about sustainability, as historical trends suggest that such premium valuations are difficult to maintain over time [23][24].

AI Leadership & Competition - The US must win the AI race to remain a global superpower, surpassing even the importance of the space race [3] - Maintaining the lead in AI requires focusing on all levels of the tech stack, from AI models to chip design and manufacturing [5][6] - The US aims to establish an American standard for AI technology globally, preventing dominance by competitors like Huawei [9] - The AI model is only months ahead of Chinese models, but chip design is a couple of years ahead, and chip manufacturing is several years ahead [5][6] - The administration aims to foster competition among American AI companies, contrasting with the previous administration's approach of centralizing control [21][22] Energy & Infrastructure - AI dominance is linked to energy dominance, requiring increased energy production to power AI data centers [7][8] - Private industry is already investing hundreds of billions of dollars in AI infrastructure, but needs reduced red tape for faster deployment [11] - Increased energy production is necessary to prevent residential electricity prices from rising due to the energy demands of data centers [16] Regulation & Copyright - The administration prioritizes winning the AI race and advocates for sensible regulation to avoid hobbling American AI companies [32] - The administration aims to prevent overregulation by states and international bodies that could hinder AI development [30][31] - The president's position is that merely ingesting data for learning purposes is not a copyright violation, as long as the AI model does not copy or plagiarize the output [35]

President Trump signing multiple executive orders on AI after the all-in podcast hosted tech and government leaders at a summit in Washington. Joining us right now is White House AI and cryptozar David Sachs. And David, welcome.Um, we really appreciate you being here today. There's a lot that we've been trying to figure out, trying to understand what yesterday all means. And I wonder if you can tell us how the private sector reads all of this and what they will do in response.>> Well, thank you for having m ...

If Nvidia were forced to forfeit China, that would deprive it of a growing market, unlike Apple’s stagnating one. Worse, it would be a boon for Chinese rivals such as Huawei https://t.co/b8Vjf3vb1q ...

If Nvidia were forced to forfeit China, that would deprive it of a growing market, unlike Apple’s stagnating one. Worse, it would be a boon for Chinese rivals such as Huawei https://t.co/hhi3hFdSBW ...