AAPL Sits Still on an Up Day for Wall St. - MOSK: 11.07.2024
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This is macOS. Can you explain how the US election might affect Apple? Factors that might have kept Apple shares stable on Wednesday, the new Apple intelligence features for public testing, that is Thursday, November 7th and 20th, 2024. I can, Ray.

And this is news from Macs Can, brought to you by yours truly and sponsored by Incogni, helping you take back your personal data. Get 60% off an annual plan with code MACOSKEN at incogni.com/macosken. The show was also supported by patrons through Patreon. Find out more and support the show at patreon.com/macosken.

Tim Cook took to Twitter on Wednesday to congratulate the winner of the 2024 US Presidential election. In a suitably congratulatory post, the CEO said, "Congratulations, President Trump, on your victory. We look forward to engaging with you and your administration to help ensure the United States continues to lead with and be fueled by genuine innovation and creativity."

I haven't spent much time on Twitter for the past couple of years, but a lot of the replies to Cook's well wishes were not pleasant, accusing Apple of trying to throw the election in favor of Vice President Harris and telling Cook to be a good boy. Gracious victory as ever. Perhaps because investors like his policies, or maybe because they just like certainty.

The markets and many stocks were through the roof on Wednesday. The NASDAQ was up 544 points, Microsoft up 8.75, Nvidia up 5.75, Google up nearly 7, and Apple, Apple was down 0.75 of a point. I cannot tell you why.

I can only offer a few reasons as possibilities.

Bloomberg says the EU was about to slap Apple with another hefty fine. So that was one possible reason. There was also a muted warning about future products.

And there was a note from Bernstein analyst Tony Sacconaghi saying Apple, and other hardware companies, could be hurt by terms telegraphed by the president. An August 2nd article from Alpha Beta pointed out that Trump has pledged to raise tariffs, proposing a universal tariff of 10-20% across imported goods, regardless of origin, as well as a 60% tariff on all goods from China and as much as 200% on goods from Mexico. The article also pointed out that the incoming administration might be able to raise tariffs without congressional approval.

The analyst went on to say that if Apple did not raise prices and volumes were unchanged, proposed Trump tariffs could negatively impact company growth, profits by an estimated 13% and earnings per share by 44-49%. The impact could be more pronounced if other countries, such as China, responded with their own tariffs on US companies. Mr. Sacconaghi has not performed a reading on Apple shares. His price target on the shares is $240. Then interestingly, Neil Cybart and Above Avalon, things about Apple might be able to slip, pass the care of trouble. Apple three, not.

Oh, and part of what he wrote on Wednesday, a few weeks ago, as one excerpt, Trump publicly retold the story of how Apple was able to avoid tariffs during his first term by agreeing to bring manufacturing back to the US. The writer says his expectation is that we will see a similar dynamic play out over the next four years. While Trump talks tough on tariffs, he will give exemptions to key US companies such as Apple. They play a role in elevating the US as an innovation powerhouse. In return, Apple will need to do more in terms of bringing manufacturing back to the US.

That part of the equation, though, doesn't address the parts where China may well respond with tariffs of its own. Speaking strictly business, the Above Avalon piece also these, a Trump administration offering relief for Apple from antitrust attacks by the DOJ, as well as more support for Apple from the US government against the European Union.

The second possible reason for Apple's freeze on an amazingly up day for Wall Street was that muted warning about future products. I mentioned the Financial Times article around the piece on Tuesday saying Apple has warned investors that future products may never be as profitable as its iPhone business as it pushes into emerging new markets such as artificial intelligence and virtual reality headsets.

It is well, I'm not sure if its customers are requirements, to be honest. But every year in the annual report, the corporate info company lists risk factors. These are things that might negatively affect Apple's business or bottom line.

Added to the lineup this time around, Apple says new products, services, and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the company's business results of operations and financial condition. In other words, whatever ends up replacing the iPhone may not make as much money as the iPhone.

One is love to wonder whether a risk like this might be tied to a product like that. We get to the third thing that might just stop Apple shares in their tracks in the moment, but first, a word from today's sponsor. Incogni helps you take back your personal data.

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I joined the huge number of people who have taken control of their personal data within Incogni. Get 60% off an annual plan with code MACOSKEN at incogni.com/macosken. The third thing that might have stalled Apple shares on Wednesday, with that piece from Bloomberg, I mentioned the one that says the EU was about to slap Apple with another hefty fine, according to that site.

Bloomberg, citing sources within the corporate info company, has said to face the first-ever fine under the European Union's new digital antitrust rules. This represents an escalation of a clash with regulators over the dominance of Apple's hugely profitable App Store. The issue is whether Apple allows developers to steer users to cheaper deals and offers outside the App Store. Regulators think they did not. That said, there is a lot of uncertainty around this story, including how big the fine will be and when it might be laid.

The piece, as it couldn't happen before a competition commissioner, Margrethe Vestager, leaves her post. That's supposed to happen at the end of this month, though while that may be too soon, the secret sources with whom Bloomberg spoke do expect that to happen before the end of this year. As for how much, the report says under the law, EU regulators have powers to fine the world's most powerful tech firms 10% of their global annual sales, 20% in the event of repeated infringements or a period.

It finds that as much as 5% of the average daily revenue news of a future expansion that comes with a built-in rhyme. Apple insiders say Apple Pay is live in Paraguay. A blog post for Mastercard indicates that the feature has been flipped on with three institutions: Banco Continental and Banco Un.O Bank. And finally, today, the public OS beta train is wanting to gun pulling out of the station or into it. MacRumors randevous Wednesday saying the first data of iOS 18.9.2, iPadOS 18.2, and macOS 15.2 had been seeded to Apple's public testing crew.

Yes, these are the ones with the fun AI stuff like Image Playground, Je og Image Playground, oh n ChatGPT integration for Siri and visual intelligence for people with the device from the iPhone 16 line, if you waited to do the weight less, but the Apple intelligent features NIOs 18, not one you will be familiar with, what comes next? Another weight? According to MacRumors, there is a secondary waiting list for early access to use.

Geo Image Playground and Image warned you can sign up to get access in Image Playground or in the areas where you access Geo Mog or Image warned when you request access, the piece as you're added to a weight less for all three capabilities, and you'll get a notification when the features are ready for you to use.

Macs Can, brought to you by me and sponsored by Incogni. 60% off an annual plan with code MACOSKEN at incogni.com/macosken. The show was also supported by people like you, patrons through Patreon. Find out more and support the show at patreon.com/macosken. Advertising handled by Backbeat Media online at backbeatmedia.com.

You can reach me a couple of ways. [email protected] or call (716) 780-4080. Until next time, that is news from Macs Can. I can, Ray.

How?