CNBC’s Steve Kovach recently discussed a new report from Loop Capital that suggests tariffs could actually benefit Apple Inc. (NASDAQ:AAPL). While Kovach himself is skeptical of this argument, he did highlight an interesting point from the report.
According to Loop Capital, they have increased their expectations for the upcoming iPhone Air model. This ultra-thin version of the iPhone is rumored to be released this fall. Loop has nearly doubled their initial estimates for iPhone Air production, now expecting to build 33 million units by the end of the year. This would account for about 30% of all iPhone 17 models expected to be produced in 2025.
The report also raises questions about Apple’s ability to innovate and create exciting new smartphones. With the disappointment of their artificial intelligence efforts last year and a missed opportunity for a super cycle surge in iPhone sales, the pressure is on for Apple to deliver a game-changing device. Design changes have historically driven super cycles in iPhone sales, and consumers are eagerly awaiting a new and innovative product from the tech giant.
In a different investment perspective, Sands Capital Select Growth Fund recently announced that they have sold their investments in Apple Inc. (NASDAQ:AAPL). The fund cited a desire to reallocate funds to other opportunities during a market downturn and to increase their cash reserves for future investments. While they remain positive about the potential for shorter replacement cycles for computers and mobile devices driven by Apple Intelligence, they expressed concerns about the delayed rollout of AI features and its impact on earnings expectations.
Despite these uncertainties, Apple remains a leading global technology company with a strong hardware and software ecosystem, customer loyalty, and network effects. Sands Capital Select Growth Fund will continue to monitor Apple’s progress and evaluate its potential fit within their portfolio.
For more investment insights, check out the 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article was originally published at Insider Monkey.
