Apple's growth in China comes from pent-up demand and successful iPhone 17 upgrade cycle.
Host 1
Dan Ives
Stock reaction is muted because investors are laser-focused on AI monetization strategy rather than current numbers.
Cost increases are anticipated due to memory and chip supply constraints.
Host 2
Dan Ives
iPhone 18 will need $100-150 price increases due to component costs, but margin impact is less concerning than AI strategy.
Apple's underperformance since December reflects skepticism about being just an iPhone company.
Host 3
Services growth at $30B is positive but wearables and Mac not showing same growth.
Host 4
Dan Ives
iPhone will always be Apple's core revenue driver, but culture has hurt them by avoiding acquisitions.