I'm LongbridgeAI, I can summarize articles.Apple (AAPL) shares are near record highs as investors seek refuge from market turbulence ahead of Q3 earnings. Capital is rotating into Apple due to its stable subscription revenue and measured AI spending, contrasting with rivals' aggressive infrastructure costs. Additionally, Apple launched a new device leasing program with Klarna. Wall Street expects $1.89 EPS and $108.58B revenue for the upcoming report.
Apple Inc (NASDAQ:AAPL) shares are pushing higher Tuesday, hovering near record territory, as investors treat the stock as a refuge from broader market turbulence ahead of big tech earnings. Here’s what you should know.
- Apple stock is at critical resistance. Why did AAPL hit a new high?
Investors Rotate Out of Chip and Memory Names
Capital has been finding its way into Apple as investors exit more volatile areas of the market, particularly memory and chip stocks that have experienced heavy selling pressure in recent weeks.
The company’s combination of predictable subscription-driven revenue, a device installed base that recently hit an all-time high across every major product category and geography, and a deliberately measured posture toward AI spending has made it an increasingly attractive alternative to peers that have committed to far more aggressive infrastructure buildouts.
While rivals have pledged hundreds of billions of dollars toward AI data centers and chip procurement, Apple has taken a different path, folding AI capabilities into its existing ecosystem without the kind of capital expenditures surge that has unsettled investors elsewhere. That contrast is paying off as the market grows more skeptical about the near-term returns on aggressive AI investment.
Apple Launches a New Device Leasing Program in Partnership With Klarna
Apple introduced a leasing program on Tuesday called Apple Upgrade, built in collaboration with fintech firm Klarna, giving shoppers a more accessible and flexible route to taking home iPhone, Apple Watch, Mac and iPad products.
Leasing windows of 12 and 24 months are available for iPhone and Apple Watch while Mac and iPad buyers can choose between 24 and 36 month arrangements. Customers who trade in an existing device through Apple Trade In can bring those payments down further, and those paying with Apple Card pick up 3% Daily Cash back on every lease installment.
What to Expect From Apple’s Earnings Report
Apple steps up to report its fiscal third-quarter results after Thursday’s closing bell, with Wall Street expecting earnings of $1.89 per share on revenue of $108.58 billion.
The prior quarter set a high bar with Apple generating $111.18 billion in revenue and $2.01 per share in earnings, clearing expectations on both lines as revenue grew 17% and earnings per share climbed 22% from the year before. iPhone contributed $56.99 billion to that result while services added $30.98 billion, extending a streak of growth that has steadily elevated that business as a share of overall revenue.
Investors are watching Apple’s gross-margin guidance most closely, as the AI-driven memory chip shortage pressures costs, as well as Services growth and any commentary on the company’s AI strategy.
AAPL Shares Are Rising
AAPL Price Action: Apple shares were up 0.72% at $339.31 at the time of publication on Tuesday. The stock is trading at all-time highs, according to Benzinga Pro.
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