Apple Rallies on Fresh Buy Rating

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00:00It seems like after a period of time where people were very kind of underwhelmed by the pace of

00:04iPhone 17 sales, especially relative to expectations for a real super cycle, it does seem like people

00:10are becoming more optimistic, even though they don't have the kind of AI features that were

00:15touted last year. It does seem like consumers are buying the new iPhone. Maybe this just reflects

00:20how long people have been holding on to their previous version, but it does seem like there

00:23are stronger than expected sales. And like you said, that did lead Loop Capital to upgrade the

00:28stock to buy this morning. Now, why all of a sudden are customers thinking about upgrading,

00:33even some that haven't since the pandemic, when next year we'll get a flip phone and it seems like

00:37next year is maybe the bigger upgrade cycle potentially? Well, I know earlier this year,

00:42there was some speculation that people were buying to get ahead of the tariff. So there could be some

00:48of that. There could just be the fact that people really have been going longer and longer without

00:51upgrading. Maybe people just feel like the latest iPhones, even though it is seen as mostly having

00:57some incremental improvements to battery, camera life, memory, things like that. This is enough

01:01for them to sort of upgrade, especially if there are concerns about tariffs. I'd say that's sort of

01:06the main takeaway. Well, we also know that we're waiting for the Apple intelligence rollout in China

01:13in particular, but it doesn't seem to have deterred those shoppers in China. Right. I think a lot of

01:19the Apple intelligence features will still be available. It might just take a software update or an OS

01:23upgrade in order to get them, but it doesn't seem like you will be barred from using them even if

01:28you upgrade right now. So I'm not sure that that is too much of a limitation for people.

01:32You know, this was very serious for Apple. It needed this iPhone 17 to work and to sell,

01:37right? It's half of its revenue, the iPhone. It has to keep coming up with better and better

01:41refreshes for this iPhone. Can it continue to do that, Ryan?

01:46Well, that is really the key question here. Apple sales growth or revenue growth has been a lot slower

01:51than what we've seen at the other mega cap cap companies. People are really hoping to see some

01:55kind of big upgrade cycle. That's why there was so much optimism surrounding Apple intelligence when

02:00it was first announced. Obviously, that didn't really play out as people expected. There were a

02:04lot of delays. Some programs were canceled or paused. We are still waiting for them to have a more

02:09pronounced, you know, shadow in the industry of AI. But in the meantime, it does seem like people

02:16continue to buy. They're upgrading more positive signals, at least for the near term.