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    Apple stock keeps surging to new highs — it’s more than just the iPhone

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    Apple stock continues to hit new record highs, extending this year’s impressive rebound. Evercore ISI sees the momentum continuing for some time, and it’s about more than just iPhone sales. Analyst Amit Daryanani raised his price target for Apple to $365 from $330 on Thursday, implying roughly 22% upside from today.

    Angela Palumbo for Barron’s:
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    Daryanani’s increased bullishness on Apple stock is based on confidence that the company can grow earnings and free cash flow at a steady pace, he wrote in a research note. Even if iPhone sales moderate, he says customers will likely prioritize purchasing higher-end, more expensive iPhone models. This could include the highly anticipated foldable iPhone.

    The analyst is also confident that Apple will continue to grow its services segment, which includes the App Store and other subscription services and is the company’s highest margin piece of the business. That, along with selling higher-priced iPhones, could help Apple’s overall margins as memory cost headwinds remain, he said.

    “We now expect AAPL to preview the strategy at WWDC and release a more personalized Siri with iOS 27 in the fall,” alongside the September iPhone event, Daryanani wrote.

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    It’s certainly about more than just the iPhone with Apple’s Services revenue reaching a record $30.976 billion in fiscal Q2 2026 (ended March 28, 2026), up 16% year-over-year.

    This high-margin segment delivered a gross margin of 76.7%, far exceeding the company’s overall gross margin of 49.3%.

    For perspective, that single-quarter Services figure nearly matches Starbucks’ full fiscal 2025 revenue of $37.2 billion and PayPal’s full-year 2025 revenue of $33.2 billion, while representing a substantial portion of companies like Uber ($52 billion full-year 2025) or Netflix ($45.2 billion full-year 2025) — highlighting the tremendous scale and profitability of Apple’s recurring Services business.

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    Source link: https://macdailynews.com/2026/05/14/apple-stock-keeps-surging-to-new-highs-its-more-than-just-the-iphone/

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    Some iPhone owners could get up to $95 after Apple agrees to settle Apple Intelligence false advertising lawsuit

    ByRSS Feed

    Owners of certain iPhones could receive cash payments of up to $95 from Apple following the company’s $250 million settlement of a class-action lawsuit over false advertising of its artificial intelligence features.

    Apple heavily promoted new AI capabilities for Siri when it launched the iPhone 16 in 2024 as part of software updates it marketed as “Apple Intelligence,” but failed to deliver.

    Kelvin Chan for Associated Press:
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    The company has been scrambling to keep up with tech rivals amid the AI boom but still hasn’t delivered on the Siri revamp two years later.

    The lawsuit, filed on behalf of U.S. consumers in the San Francisco federal court for the Northern District of California, alleged that Apple deceived consumers with a marketing campaign that promoted features that did not yet exist and misled them into buying the devices.

    Lawyers for the iPhone buyers asked a court for preliminary approval of the proposed $250 million settlement, according to a court filling. If approved by a judge, it would be one of the biggest ever for Apple.

    The settlement covers about 37 million devices bought in the United States between June 10, 2024 and March 29, 2025, including all iPhone 16 models and the iPhone 15 Pro and iPhone 15 Pro Max.

    Owners are eligible for a payment of at least $25 for each device, and that amount could go up to $95 depending on how many other claims are filed “and other factors,” the filing said.

    Apple, based in Cupertino, California, was caught off-guard by the intense consumer interest in the Siri AI features. Buyers were angered after finding out that the new features would be released later than expected, the filing said.

    They “would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available,” the filling said.

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    Again, Apple got off easy. It ends up being effective advertising, albeit false. $250 million is pocket change.

    As usual, we called it correctly very early on:

    The Apple Intelligence vaporware [is] false advertising, fraud, and lies. Those will be the basis for class action lawsuits from iPhone, iPad, and Mac customers soon enough. And Apple will deserve them all. – MacDailyNews, March 14, 2025

    See also: Apple pulls iPhone 16 ad touting nonexistent Apple Intelligence-powered Siri features – March 10, 2025

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    Source link: https://macdailynews.com/2026/05/06/some-iphone-owners-could-get-up-to-95-after-apple-agrees-to-settle-apple-intelligence-false-advertising-lawsuit/