Apple News
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Apple’s Project Mulberry introduces an AI-powered virtual health coach, Health+, set to enhance the Health app with iOS 19.4 in spring/summer 2026.
This service uses data from iPhones, Apple Watches, and AirPods to deliver personalised health advice on fitness, nutrition, sleep, and mental wellbeing. Trained with input from in-house doctors and specialists, the AI aims to mimic a doctor’s guidance, though it’s a wellness tool, not a diagnostic one.
The revamped Health app will prioritise food tracking, rival apps like MyFitnessPal, and offer real-time workout analysis via device cameras, potentially linking to Fitness+. Apple is also producing educational health videos, filmed near Oakland, and seeking a prominent doctor to front the service. Privacy remains central, with user data secured.
From a monetisation perspective, Health+ is a savvy move. Apple could integrate it into Fitness+ or offer it as a premium subscription, tapping into the growing digital health market. By leveraging its ecosystem, Apple ensures user retention, driving device sales and recurring revenue. -
A beat on the top and bottom lines from Apple, delivering a solid quarter
Notes:
EPS and Revenue: Apple surpassed analyst expectations, reporting an EPS of $1.65 (vs. $1.62–$1.63) and revenue of $95.4 billion (vs. $94.2–$94.66 billion), a 5% year-over-year increase, driven by robust iPhone and hardware sales.iPhone Revenue: Rose 2% to $46.84 billion, exceeding forecasts, despite stable iPhone unit sales, reflecting strong demand for the iPhone 16 series.
Services Revenue: Grew 11.65% to $26.65 billion, slightly below expectations ($26.7 billion), supported by over 1 billion subscriptions across services like the App Store and iCloud.
Mac and iPad Revenue: Mac sales increased 6.6% to $7.95 billion, and iPad sales rose 15% to $6.4 billion, both outperforming estimates, fuelled by new MacBook Air and iPad Air models launched in March.
Wearables, Home, Accessories: Declined 5% to $7.52 billion, missing expectations, due to a challenging comparison with the Vision Pro launch in Q2 2024.
Greater China Revenue: Dropped to $16 billion (vs. $16.8 billion expected), impacted by competition from local brands such as Vivo and Huawei.
Guidance for Q3 2025: Apple anticipates revenue growth “similar to” Q2’s 5% year-over-year growth, despite a 2% foreign exchange headwind. Services revenue is expected to grow in the low-double digits. Gross margin is projected at approximately 46.0% (midpoint), affected by a $900 million tariff cost. Operating expenses are forecasted at $15.6–$15.8 billion, with other income/expense around negative $300 million and a tax rate of about 16%.
AI and CapEx Details from Earnings Call
AI (Apple Intelligence): CEO Tim Cook emphasised Apple Intelligence as a core strategic priority, integrated into iOS 18 and the iPhone 16 lineup. However, delays in generative AI features for Siri, now expected in 2026, raised questions about Apple’s competitive position against Google and Microsoft. Cook highlighted increased research and development (R&D) expenditure, representing 7% of Q2 net sales (approximately $6.7 billion), to advance AI capabilities. Apple Intelligence is set to expand to additional languages in April 2025.CapEx: Apple does not disclose precise CapEx figures. However, Cook noted significant investments in supply chain diversification to counter tariff impacts, including manufacturing iPhones in India for the US market and sourcing other products from Vietnam.
Analysts estimate Apple’s annual CapEx at $10–$12 billion, directed towards AI infrastructure, production facilities, and retail. The $900 million tariff cost projected for Q3 2025 reflects challenges from US tariffs on Chinese imports, prompting Apple to optimise its global supply chain. Cook stated that Apple’s on-device AI approach reduces the need for extensive data centre investments compared to competitors building large-scale AI models.Apple stock in our opinion looks fully priced-not stretched. It is a perhaps the strongest brand in the world and has a credit rating equivalent to government debt, and is trading on a similar basis. Our carrying weight had been trimmed over the past quarters to reflect this.
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& will never happen.
Trumps latest market manipulation is just dire.
His crazy tariff game enables those in the know to make HUGE gains from the market swings, & shoe-horning crypto fan Atkins in as SEC Chief helps him avoid the glare of investigation (for now).
I am sure things will back up, but it is just appalling how he can get away with stuff. The ambush on Ramaphose with a mixup of totally fake news the other day was awful to watch, like Zelenskyy’s but worse, with the “dim the lights” cr@p. Just reality show nonsense. -
If there is a tariff on phones, Apple will raise global prices to smooth the spikes. It’s not a sustainable model so best to ignore it as yet about pet project of DT. With earnings next week(Nvidia) it’s all eyes elsewhere.