Company Reports

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service derives its greatest value from further locking in customers to this walled garden. This approach earns the firm Morningstar Economic Moat Rating of wide.

Apple unveiled the iPhone Duo, its first foldable smartphone, at its Sept. 9, 2026, event. The firm also announced the iPhone 18 Pro, the Apple Watch Series 12 and Apple Watch Ultra 4, and AirPods 5 at the event.

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service derives its greatest value from further locking in customers to this walled garden. This approach earns the firm Morningstar Economic Moat Rating of wide.

Apple's June-quarter results were strong, highlighted by total revenue rising 16% year over year to $109.4 billion and 22% year-over-year growth in iPhone revenue. September guidance is weighed down by a combination of supply constraints, memory inflation, and foreign exchange headwinds.

Apple and Broadcom have announced a renewed chip supply agreement through 2031. The agreement exceeds $30 billion in chips to Apple and includes wireless products like Broadcom's FBAR filters as well as custom chips, likely for artificial intelligence.

In an interview with The Wall Street Journal, Apple CEO Tim Cook announced plans to raise device prices to offset inflation in memory chip costs. Cook didn't offer further details on the magnitude of the increases or their timing.

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service derives its greatest value from further locking in customers to this walled garden. This approach earns the firm Morningstar Economic Moat Rating of wide.

Apple hosted its annual Worldwide Developers Conference on June 8, headlined by updates to its suite of artificial intelligence features and a revamped Siri voice assistant. The firm also announced incremental improvements across its software platforms and new child accounts and parental controls.

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service sees its greatest value from further locking in customers to this walled garden. This approach earns the firm a wide economic moat rating.

Apple's March-quarter results beat the top ends of guidance. Revenue rose 17% year over year to $111 billion, led by iPhone revenue rising 22%. Gross margin of 49.3% was an all-time record. Management guided to similarly strong growth in the June quarter, with slight margin compression.

Apple named John Ternus its next CEO, effective Sept. 1. Tim Cook will transition to the role of executive chairman, and former board chair Arthur Levinson will assume the role of lead independent director. Ternus was formerly the senior vice president of hardware engineering.

Apple unveiled a slew of new products during the week of March 2, highlighted by the brand-new MacBook Neo. Other releases included updated iterations, such as the iPhone 17e, new M5-series chips in MacBooks, a new iPad Air with an updated M4 chip, and new Studio displays.

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service sees its greatest value from further locking in customers to this walled garden. This approach earns the firm a wide economic moat rating.

Apple posted stellar December-quarter results, led by 23% year-over-year growth in iPhone revenue and over 100 basis points of gross margin expansion. March-quarter guidance implies continued high growth and further margin expansion.

On Jan. 12, Google announced that Apple's next-generation artificial intelligence models will be based on Gemini models in a multiyear partnership. Gemini will now be a foundational piece of Apple Intelligence and will underpin the next-generation Siri voice assistant set to launch in 2026.

We believe Apple holds a dominant position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service sees its greatest value from further locking in customers to this walled garden. This approach earns the firm a wide economic moat rating.

Apple's September-quarter results were strong, with revenue rising 8% year over year to $102 billion and gross margin expanding 100 basis points year over year to 47.2%. December guidance was even better, with double-digit revenue growth expected, as well as further gross margin expansion.

Apple unveiled its new iPhone 17 lineup on Tuesday, including a brand new, ultrathin iPhone Air. Management also announced updates to the Watch lineup, including Series 11 and Ultra 3, and the AirPods Pro 3.

Apple announced an additional $100 billion in US investment, primarily in manufacturing, at the White House on Aug. 6. This brings Apple's total commitments to US investment during the Donald Trump administration to $600 billion. New investments focus on semiconductors and glass for iPhones.

We believe Apple has solidified its long-term position at the forefront of the consumer electronics industry, focusing on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service sees its greatest value from further locking in customers to this walled garden. This approach earns the firm a wide economic moat rating.