Apple shares: Vision Pro and when will AI spend pay off?
Apple’s results were more about what the tech giant didn’t say, rather than what was announced. IGTV financial analyst @AngelineOng explains why the iPhone giant’s Vision Pro and AI pay off are vital to understanding the stock.
(Video Transcript)
Competition fierce for Apple
Apple's results haven't sparked as much interest as the company had hoped. Perhaps this underscores just how tricky things are for the iPhone giant. Apple is stuck between a rock and a hard place. Fewer people are buying the iPhone, its flagship product and this, it says, will persist for a fourth quarter in a row.
Competition is also fierce and, at the same time, its brand-new shiny product, the Vision Pro, isn't yet in consumers' hands. Well, all this comes at a time when it says its services performance has been robust. The question is whether its robust performance in the services part of its business, home to Apple TV Plus, can continue to grow, buffering its iPhone weakness while it gets Vision Pro on the shelves.
Challenge of monetising AI
Let's have a look at the chart here for you, because Apple's shares have risen quite remarkably, beating the average handily if you look at that against the NASDAQ. The other thing is AI: Apple's boss Tim Cook said the company is investing heavily to keep ahead of big tech rivals, including Microsoft, Meta and Alphabet. Starting this fall, one feature will be the ability to transcribe voicemail messages in real time on the iPhone.
So where is the salad dressing? Well, the key is spotting when Apple's AI spend will leap from R&D into the profit side of its balance sheets.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
