Core Viewpoint - Despite signs of slowing iPhone sales growth, a prediction indicates that Apple’s smartphone sales are set to rebound, potentially boosting its stock value [1] Group 1: iPhone Sales and Pricing - Apple reported a 4% decline in iPhone revenue over the past six months compared to the previous year [1] - Analyst Dan Ives predicts that the upcoming iPhone 15 will encourage consumers, particularly those with approximately 250 million outdated iPhones, to upgrade [3] - The average selling price of new iPhones is expected to rise to around $925, an increase of $100 compared to the average price over the past 18 months [3] - Current pricing for the iPhone 14 Pro Max starts at $1,099, while the Pro model starts at $999, and the base model is available for $799 [3] Group 2: Services Business Growth - Ives believes that Apple's services business, which includes revenue from cloud services, App Store, Apple TV, fitness, and advertising, is significantly undervalued [4] - The services revenue is projected to approach $100 billion this year, up from approximately $50 billion in 2020 [4] - In the first half of this year, Apple’s services revenue reached $41.7 billion, reflecting a 6% year-over-year growth [4] Group 3: Stock Price Prediction - Ives has raised the target price for Apple’s stock to $220 per share, indicating a belief that the current stock price of around $181 is relatively cheap [4] - The stock has been on an upward trend, reaching historical highs in June [4] - Analysts have expressed unprecedented optimism regarding Apple's future, regardless of the potential success of the Vision Pro or the perceived value of the iPhone [4]

Core Viewpoint - Apple is considering launching a developer-focused cloud service, which would position it against major cloud service providers like Amazon, Microsoft, and Google, marking a significant expansion in its business landscape and a strategic move in the tech industry competition [2] Group 1: Cloud Service Development - The cloud service project is part of Apple's "ACDC plan" (Apple Chips in Data Center), with the first step being the launch of a private cloud computing service that utilizes high-end Mac chips for complex AI requests [3] - Apple's internal tests show that its server chips can effectively handle Apple Wallet transactions, leading to significant cost savings in infrastructure [3] - The Siri team has reported improved accuracy and cost control in text-to-speech functions using Mac chip-based servers compared to traditional Intel chip servers [3] Group 2: AI Strategy and Chip Advantage - Apple's self-developed chips are seen as a key advantage, allowing developers to use cloud services at lower costs, particularly in compute-intensive AI applications [4] - Apple has a long history of AI-related work on its chips, with companies like Dragonfruit leveraging Apple chips for cost-effective AI solutions [5] - Apple has built an open-source machine learning framework (MLX) to facilitate developers in running AI models on its hardware [5] Group 3: Revenue Growth and Developer Engagement - The introduction of a developer cloud service is crucial for Apple's service revenue, which is one of the few growth areas facing challenges from new regulations and legal scrutiny [7] - Unlike traditional cloud service providers, Apple plans to engage developers through its developer relations team rather than a large enterprise sales team, aligning with its established developer ecosystem [11] Group 4: Uncertainty and Future Prospects - The current status of the cloud service project is unclear, especially after the departure of key supporter Michael Abbott in 2023, raising questions about its future [12] - Despite the loss of a major advocate, there are still internal supporters for the project, and discussions are ongoing as of mid-2024 [12] - If successfully launched, the cloud service could open new revenue streams and reshape Apple's competitive stance in the tech industry, particularly in the context of AI and cloud computing integration [13]