Apple has chosen to hold iPhone prices steady even as chip shortages from AI datacenter buildouts forced rivals to raise prices and drove global smartphone shipments to a 13-year low. iPhone shipments rose 3% and market share climbed to nearly 20%. Meanwhile Apple has avoided the hundreds of billions in AI capex that left peers like Alphabet with negative free cash flow.
Investors who once scorned Apple for sitting out the AI spending race are now rewarding it for capital discipline as doubts grow about returns on massive AI infrastructure bets. The company is expected to post its strongest June-quarter sales growth in five years with revenue up 15.5% powered by a jump in iPhone sales.
Trade Analysis
Bullish signals for Apple:
- Already holding the top spot with momentum with defensive appeal.
- Any clean earnings print or guidance can lock in the lead through Friday’s close.
Bullish signals for Nvidia:
- Still the pure-play AI infrastructure leader.
- Expected September iPhone price hikes could trigger profit-taking.
With only two sessions left, the market has already shifted. Traders can fade “Nvidia reclaims number 1” bets unless Apple delivers a clear miss. Prefer holding or adding Apple exposure on any post-earnings dip that still leaves it ahead.