Core Insights - Apple shares have appreciated 18.1% over the past six months, outperforming the Zacks Computer and Technology sector's return of 10.2, driven by strong iPhone 17 sales and growth in Services [1][8] iPhone Sales Performance - iPhone 17 sales increased by 23.3% year over year to $85.27 billion, accounting for 59.3% of first-quarter fiscal 2026 net sales [1][8] - The strong sales of iPhone 17 significantly boosted revenues in China during the first quarter of fiscal 2026 [1] Services Growth - Services contributed 20.9% to quarterly revenues, growing 14% year over year to $30.01 billion, aligning with management guidance [1] - The Services segment includes advertising, AppleCare, Cloud Services, and digital content, achieving all-time revenue records in the first quarter of fiscal 2026 [6] AI Initiatives and Collaborations - Apple is enhancing iPhone features through Apple Intelligence tools and a collaboration with Alphabet, which is expected to improve the capabilities of Apple Intelligence [2][3] - The partnership with Alphabet aims to address execution challenges and enhance the adoption of Apple Intelligence among developers [5] Market Position and Valuation - Apple shares have outperformed Microsoft and Amazon but underperformed Alphabet in the past six months, with Alphabet shares rising by 53.9% [11] - Apple's stock is trading at a premium, with a forward price/sales ratio of 8.56, compared to the sector's 6.51 and Microsoft's 8.43 [14] Fiscal Estimates - The Zacks Consensus Estimate for Apple's fiscal 2026 earnings has increased by 3.2% to $8.41 per share, indicating a 12.7% growth from fiscal 2025 [9] - The revenue estimate for fiscal 2026 is pegged at $461.12 billion, reflecting a 10.8% growth over fiscal 2025 [10] Conclusion - Apple's strong iPhone and Services business, along with the expanding AI capabilities from the collaboration with Alphabet, are expected to drive future growth, justifying a premium valuation despite competitive pressures [17]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld, taking you through to that closing bell with a global simulcast. There it is behind me, Carol Massar Tim Stenovec in the radio room.Welcome to our audiences across all of our Bloomberg platforms, including our partnership with YouTube a day Carol Massar That, of course, has been consumed by the attention on Kevin Warsh, the nominee to succeed Jay Powell. But it kind of obscures some real volatility ...

Key Takeaways AAPL expects fiscal Q1 sales to grow 10-12% Y/Y, with double-digit iPhone revenue growth projected. The Services segment is set to grow 14.1% Y/Y, driven by Apple TV , Arcade, and an expanding device base.Mac revenue is projected to rise just 0.9% Y/Y amid tough comps and market share loss to rivals. Apple (AAPL) is set to report first-quarter fiscal 2026 results on Jan. 29.Apple expects first-quarter fiscal 2026 net sales to grow between 10% and 12% on a year-over-year basis. The company expe ...

Core Insights - Apple has entered a multi-year collaboration with Alphabet to utilize Google's Gemini models and cloud technology for its AI initiatives, particularly enhancing Apple Intelligence features like Siri [1][7] - The partnership aims to address Apple's challenges in AI execution and timeliness, which have hindered its competitive position against companies like Alphabet, Microsoft, and Amazon [2][4] Group 1: AI Collaboration and Impact - The collaboration with Alphabet is expected to resolve Apple's issues related to the timing and execution of its AI features, which have been lagging behind competitors [4][7] - Apple Intelligence is projected to significantly contribute to the growth of Apple's Services segment, which currently accounts for approximately 26% of net sales [4][7] Group 2: Services Business Growth - Apple's Services segment, which includes advertising, AppleCare, Cloud Services, and digital content, is benefiting from an expanding base of installed devices and a growing user base [5][6] - In 2025, the App Store recorded over 850 million average weekly users globally, with developers earning over $550 billion since 2008, indicating strong engagement on Apple's platform [6] Group 3: Market Performance and Valuation - Apple shares have increased by 11.3% over the past 12 months, underperforming the Zacks Computer and Technology sector, which saw a return of 29.9% [7][8] - The current valuation of Apple stock is considered stretched, with a forward price/sales ratio of 8.27X compared to the sector's 7.47X and Amazon's 3.3X [11]

Core Viewpoint - Tim Cook is considered a more outstanding entrepreneur than Steve Jobs, and his leadership has significantly contributed to Apple's success, leading to a tenfold increase in market value and the launch of innovative products [1][2][3]. Group 1: Tim Cook's Achievements - Under Cook's leadership, Apple's market value grew to over $3 trillion, and iPhone sales increased from 1 billion to 3 billion units [2]. - Cook has successfully expanded Apple's product line with innovations like Apple Watch, AirPods, and Apple Vision, as well as subscription services like Apple TV and Apple Arcade [2]. - The transition from Intel chips to Apple's self-developed chips in Mac products has been completed, showcasing Apple's technological independence [2]. Group 2: Social Responsibility and Leadership Style - Cook emphasizes social responsibility, integrating issues like environmental protection and privacy into Apple's operations, with a goal of achieving carbon neutrality by 2030 [2]. - Cook's approach is seen as more approachable compared to Jobs, as he has made multiple visits to China, enhancing Apple's global presence [2]. Group 3: Succession Planning - At 65 years old, Cook has expressed fatigue and a desire to reduce his workload, prompting Apple to accelerate its succession planning [5]. - The likely successor is John Ternus, the current Senior Vice President of Hardware Engineering, who has been with Apple for 25 years and is known for his cautious and low-profile demeanor [5][7]. Group 4: Expectations for John Ternus - Ternus is expected to drive hardware innovation at Apple, addressing concerns about the lack of product innovation in recent years [9]. - He has led the development of significant products like AirPods and the transition to Apple’s M-series chips, indicating his capability in hardware innovation [7][9]. - Ternus's background in hardware is seen as crucial for advancing Apple's AI initiatives, which have lagged under Cook's operational focus [11]. Group 5: Employee Perspectives - Some Apple employees express concerns that Ternus may lack the visionary and risk-taking qualities of Jobs, potentially leading to a more conservative approach to product development [13]. - Ternus shares similarities with Cook in terms of supply chain management expertise and interest in environmental issues, suggesting continuity in leadership style [13].

Core Insights - Apple (AAPL) and Chase will transition the issuance of Apple Card to Chase, expected to complete in approximately 24 months, while users will continue to enjoy benefits like Daily Cash rewards and access to a high-yield Savings account [1][10] Group 1: Apple Card and Payment Services - Apple Card, launched in 2019, emphasizes users' financial health, offering 2% Daily Cash back for Apple Pay transactions, which is accepted in nearly 90 countries and at over 85% of U.S. retailers [2] - The Services segment, which includes Apple Pay, accounted for 26.2% of Apple's net sales in fiscal 2025, with a revenue growth of 14% year-over-year, surpassing the 13% growth in fiscal 2024 [3][10] Group 2: Content and Subscription Services - Apple is expanding its Arcade game portfolio to enhance subscriber engagement, with a focus on sports content, including streaming all Major League Soccer games for Apple TV subscribers starting in 2026 [4] - Apple TV will also become the exclusive broadcast partner for Formula 1 in the U.S. in 2026 under a five-year agreement [4] Group 3: Competitive Landscape - Apple faces significant competition in the fintech sector from Alphabet (GOOGL) and Affirm Holdings (AFRM) [5][10] - Google Pay, part of Google Wallet, is gaining popularity, especially in regions like India and Southeast Asia, with new features enhancing user experience [6] - Affirm Holdings is experiencing strong growth through its payment solutions, supported by a robust merchant network and entry into high-growth sectors like gaming [7] Group 4: Stock Performance and Valuation - Apple shares have increased by 23.3% over the past six months, outperforming the broader Zacks Computer and Technology sector, which returned 18.4% [8][10] - The Zacks Consensus Estimate for fiscal 2026 earnings is $8.12 per share, indicating an 8.9% growth from fiscal 2025 [12] - Apple stock is currently trading at a forward price/earnings ratio of 31.03X, higher than the sector average of 27.84X, reflecting a premium valuation [13]

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Hello everybody. So my name is Adrianna Lewis and I am part of the content strategy and acquisition team here at Apple Arcade. So many of you have likely heard of arcade or even have active games here on the service, but if you don't today, I have the great privilege to share with you all what arcade is all about.So the goal of arcade has always been to create the next generation arcade by offering fun, safe and unforgettable gaming experiences. But before I dive in, here's a short video showing a compilati ...

Hi, I’m Alexey and I lead the Game Technologies team here at Apple. Your players expect the best possible experience in your games. And today I want to talk about the frameworks, tools and resources that are available to help you achieve it.In fact, the Apple Arcade system is really outstanding when it comes to gaming. The vast majority of players already have more than one device available, and they are carrying these devices around using them every day. They don't need an additional dedicated device just ...

Apple's Unified Gaming Platform - Apple's unified gaming platform enables developers to target Mac, iPad, and iPhone from a single code base, supporting graphically demanding games across various hardware and platforms [3] - The unified architecture also serves as the foundation for building games for spatial computing on Apple Vision Pro [3] Game Engine Support - Unity and Unreal Engine offer deep support for Apple platforms, leveraging Metal for direct GPU access, simplifying the process of targeting Apple devices [7] - Apple provides Unity plug-ins that bridge native APIs, allowing developers to integrate features like Game Center, Game Controller support (MFI compliant controllers, Sony, Microsoft), accessibility features (VoiceOver, Dynamic Type), and Core Haptics [9][10][11][12][13][14][15] - Apple's Game Center plugin facilitates integration of Leaderboards, Achievements, Challenges, and matchmaking [11] Game Porting Toolkit - Apple offers a Game Porting Toolkit for bringing Windows or console games to Apple platforms, enabling developers to leverage existing PC workflows and tools [21] - The toolkit includes an evaluation environment to run existing x86 Windows binaries on Mac, Metal developer tools for Windows, and Mac remote developer tools for Windows [22][23][26][28] - The Metal Shader Converter automatically converts DirectX Intermediate Language (DXIL) into a Metal library [29] - Metal-cpp, a header-only C++ wrapper for the Metal API, allows developers to use Metal in a familiar language [31] - The Game Porting Toolkit includes Human Interface guidelines for games, offering advice on platform conventions, on-screen controls, and input handling [31][32] - The game porting sample code serves as a tutorial for porting and a standalone example of a native game built for Mac, iPad, and iPhone [33][34]