What Apple’s latest announcements really mean
Sure, the spotlight fell on the new iPhones, but the real developments are hidden elsewhere.
And above all… in the company’s future!
And when we say future, we’re talking both about the technological direction Apple will take in the coming years, as well as the investment opportunities that may be opening up today.
NEW PRODUCTS
Last Tuesday, Apple introduced the new iPhone 17 lineup.
The base model now comes with a refreshed 120Hz display, the new A19 chip, and an improved camera system. Available in four colors, starting at $799. At the same time, the new iPhone Air was unveiled: the thinnest iPhone ever, just 5.6 millimeters thick, built from titanium, powered by the A19 Pro chip, and featuring new connectivity technology. Starting price: $999.
Of course, there were also the “heavyweights” of the lineup: iPhone 17 Pro and Pro Max, with even better cameras, 8x optical zoom, larger sensors, and the biggest battery ever in an iPhone. Prices from $1,099 and $1,199 respectively.
In short, only minor changes and additions, with prices staying the same.
LIVE TRANSLATION
All good. Nice additions. But the real innovation didn’t come from the iPhones. It came from… the AirPods.
Apple presented the AirPods Pro 3, featuring real-time live translation through Apple Intelligence.
You travel abroad, you speak Greek, the other person hears English. And vice versa. A feature that many tried to be the first to deliver, and it seems Apple actually pulled it off. This is cutting-edge technology, powered by AI, making the AirPods Pro 3 far more than just headphones. Alongside live translation came improvements such as better noise cancellation, enhanced dust and water resistance, and longer battery life.
THE REACTION
However, the investment community wasn’t thrilled. The truth is that Apple seems to be hitting the brakes on innovation. Or at least that’s how it feels to the market. The iPhones 16 and 17 were described by some analysts as “conservative” upgrades, and the sense of excitement that used to accompany every Apple event is missing.
In fact, D.A. Davidson downgraded Apple stock from Buy to Neutral, saying that the new products are “too little” to trigger a major upgrade cycle.
And that’s not all. Developments in the field of artificial intelligence are causing concern, as major AI executives are leaving en masse for competitors like Meta.
For example, Robby Walker, head of the Knowledge & Answers teams, is leaving next month. Along with him, a number of other AI researchers are departing — including key figures such as Jian Zhang (former head of robotics) and Frank Chu, who now works at Meta’s Superintelligence Labs. All this while Siri… remains behind Alexa and Google Assistant, especially with more complex voice commands.
PARTNERSHIP WITH GOOGLE
Of course, this is not just any company. Apple seems to have realized all this, and is taking steps to improve the situation.
According to Bloomberg, it is in talks with Google to use Gemini AI as the driving force behind the next-generation Siri. If this goes through, it would be a huge change for Apple’s ecosystem. Discussions also took place with OpenAI and Anthropic, with Siri being at the center of this AI reboot. While Apple is also considering developing a custom AI model, everything indicates that a partnership with an external provider is the most likely scenario for now.
INVESTMENT VIEW
Still, let’s not rush to conclusions. Apple may not always be first in everything, but it is consistently profitable. Revenue from services (Apple Music, iCloud, App Store, Apple Pay, Arcade) keeps rising steadily, with high margins. In fact, according to the latest reports, services now account for almost one quarter of the company’s total revenue.
At the same time, the partnership with Google to use Chrome as the default browser brings billions every year into Apple’s coffers. Official numbers aren’t published, but estimates suggest Google pays over $18 billion annually to Apple for this deal.
And above all, every time we say “we weren’t impressed,” in the end… sales go perfectly fine.
Posted Using INLEO