Apple Inc (AAPL)

There will be an upgrade cycle to rival that of the iPhone 6 which offered a bigger screen. The new phone will feature AI.

Underperforming on RSI. Not that it was going down, but was going sideways when everything else was going up. Blasted above $195 and has moved into the top zone in relative strength. That big break out suggests more buying, even though talk this week is about rebalancing for less AAPL and more NVDA. Has held up nicely above $200 and rising within the RSI ranking. Yield is 0.47%.

His hesitation has always lied with its reliance on their phone for revenues. It's an iPhone company doing phenomenally well with a software valuation. Yes, services are comprising more of its revenues, but they have a long way to go. Prefers MSFT.

Lots of AI hype, started announcing features to boost sales. Last quarter's results were the fifth out of six that revenues fell. Growth problem. Topline hasn't grown for over 1.5 years. People are holding onto phones longer.

Sells to consumers, whereas MSFT sells to corporations. Consumers have limited needs versus a corporation. So AAPL has to find something else to move the needle.

He always says own this, don't trade it. Shares high new highs yet again today. One analyst just said that a critical piece of information revealed at Monday's developers' conference was that Apple's AI will function--backward compatible--with the iPhone 15 Pro, which means it could lead to a much-needed iPhone upgrade cycle.

Shares fell after Apple announced AI news at their developers' conference. The news, wasn't enough to excite the street, though Apple will partner with Chat GPT, a company with deep ties to Microsoft. The CEO said this may be the first of many AI services to come. Today's announcement marked the introduction by Apple of gen AI for personal--not corporate--use. Own Apple, don't trade it.

Is a little worried because shares have run up and Monday they unveil new AI product(s). Apple is on the cusp of an AI theme. Will buy Apple on any weakness.

Own, don't trade it.  Shares were up today on news of perhaps an AI announcement at a developers' conference in June, but it lost those gains given the rest of the market under pressure. 

Has sold shares in Apple. Revenue and earnings have slowed. Stock price very high give flat earnings. A.I. has lots of potential, but better names to own in tech. Believes strength in tech has also slowed. 

Multiple's higher than it's been in last 2-3 years. At a premium to some of the other Mag 7, where there's more growth. Headwinds on device side. Where's growth going to come from? China connection adds uncertainty. Ultimately fine, but not his choice.

Through history, periods of dormancy. iPhone cycle seems to have bottomed in last 2-3 months. Chinese sales up. 2B devices, 93% loyalty. Cashflow machine. This next cycle will include an AI opportunity. Yield is 0.5%.

Huge installed based with iPhones, growing internationally. No public AI offerings yet, but rumblings of partnerships. Huge upside potential in services business, with margins more attractive than manufacturing side. Happy to hold.

Shares have softened up. More than half the sales are still iPhone, but people are upgrading less often, revenue growth has slowed. Massive cashflow. Bright management. Valuation is too hefty for his liking, but hard to argue against the company. He prefers the software companies.

With all its R&D investment, sometime we may see the next killer device and the company return to growth again.