Apple's $600B Investment Plan: A Closer Look and Rating Downgrade
ByAinvest
Tuesday, Aug 26, 2025 1:34 pm ET1min read
AAPL--
The iPhone 17 Air, priced $100 higher than the current Plus model, is expected to be the headline feature. However, investor enthusiasm for the thinner design is subdued compared to past form-factor-driven cycles. Mohan projects iPhone shipments to grow 1% year-over-year in fiscal 2026 to 235 million units, with carrier promotions matching last year's levels [1].
If Apple sticks to a September 19 release, there would be nine shipping days in the fiscal fourth quarter, similar to last year. Mohan cautions that iPhone events often trigger a short-term "sell the news" reaction. However, a strong Apple Intelligence demo, deeper third-party integrations, or surprise pricing could improve stock performance [1].
The iPhone 17 is expected to run iOS 26, with the Air measuring just 5.55mm and potentially featuring Apple's in-house modem. Other likely announcements include the Apple Watch Series 11, Ultra 3, and AirPods 3, as well as deeper AI features and tighter Siri integration [1].
Apple stock is trading higher by 0.28% to $228.40 at last check Monday [1].
References:
[1] https://finance.yahoo.com/news/apple-iphone-17-launch-could-164046827.html
Apple's $600B investment commitment has been broken down into key components, including the company's services business, which is expected to reach $50B in annual revenue. The services business includes Apple Music, Apple TV+, and Apple Arcade, among other offerings. The breakdown also highlights Apple's investments in artificial intelligence, augmented and virtual reality, and electric vehicles. The company's rating has been downgraded due to concerns over the slowing growth of its core iPhone business.
Apple Inc. (NASDAQ:AAPL) is preparing for its next iPhone cycle, with a September launch expected to showcase the new ultra-thin iPhone 17 Air. According to Bank of America Securities analyst Wamsi Mohan, while the iPhone 17 lineup is expected to include four models (Pro, Pro Max, Air, and base), consumer buzz and carrier promotions are muted, suggesting a less impactful release than previous cycles. Mohan maintains a Buy rating on Apple with a price forecast of $250 [1].The iPhone 17 Air, priced $100 higher than the current Plus model, is expected to be the headline feature. However, investor enthusiasm for the thinner design is subdued compared to past form-factor-driven cycles. Mohan projects iPhone shipments to grow 1% year-over-year in fiscal 2026 to 235 million units, with carrier promotions matching last year's levels [1].
If Apple sticks to a September 19 release, there would be nine shipping days in the fiscal fourth quarter, similar to last year. Mohan cautions that iPhone events often trigger a short-term "sell the news" reaction. However, a strong Apple Intelligence demo, deeper third-party integrations, or surprise pricing could improve stock performance [1].
The iPhone 17 is expected to run iOS 26, with the Air measuring just 5.55mm and potentially featuring Apple's in-house modem. Other likely announcements include the Apple Watch Series 11, Ultra 3, and AirPods 3, as well as deeper AI features and tighter Siri integration [1].
Apple stock is trading higher by 0.28% to $228.40 at last check Monday [1].
References:
[1] https://finance.yahoo.com/news/apple-iphone-17-launch-could-164046827.html
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