Episode summary
Apple Hits First Record of 2025 as iPhone Optimism Fuels Rebound | Bloomberg Intelligence
Bloomberg Intelligence
· · 17 min · Hosts: Paul Sweeney, Scarlet Fu, Lisa Mateo · Guests: Mandeep Singh, Andrea Felsted, Patrick Daniel
Summary
Apple’s stock strength was tied to a fresh read-through on iPhone demand, with the analyst saying the move looks like a positive data point after the new launch rather than the start of a huge upgrade cycle. He said the iPhone 17 is seeing better demand than the iPhone 16, helped by lighter hardware, a faster processor and a new battery, but argued the bigger missing piece is a stronger on-device AI story. He said Apple still needs to act on generative AI, either through greater investment, acquisitions or partnerships, while noting that the company’s hardware roadmap may eventually include AR glasses and other AI-enabled devices.
The discussion then shifted to Kering’s agreement to sell its beauty division to L’Oreal in a deal worth about €4 billion. The analyst said the move is really about raising cash, easing a stretched balance sheet and giving new CEO Luca de Meo time to focus on reviving Gucci. She said Kering had tried to build beauty as a platform, but the business now faces pressure from weak Chinese demand, higher tariffs and a luxury market split between very wealthy buyers and pressured aspirational consumers.
The final segment focused on AI in wealth management. The guest said AI will not replace financial advisers, but it will boost their productivity through meeting tools, note-taking, modeling and next-best-action support. He said firms need strong compliance controls, and that the biggest concern is preserving human relationships as clients increasingly turn to large language models for financial advice.
Key takeaways
- The analyst said Apple’s latest strength reflects better iPhone demand, but not a full-blown upgrade supercycle.
- He argued Apple still lacks a compelling on-device generative-AI story and may need partnerships or acquisitions to catch up.
- The analyst said Kering is effectively selling its beauty assets to L’Oreal to raise cash and buy time for Gucci’s turnaround.
- He said luxury demand is splitting between ultra-rich shoppers and weaker aspirational customers, pressuring brands like Gucci.
- The guest said AI will augment advisers through automation and modeling, but not replace the human relationship in wealth management.
Notable quotes
“I would call it a positive data point after the new iPhone launch”
“the missing ingredient here is a large language model running natively on device”
“Absolutely not. the uh you know what we're seeing today in terms of there's a there's a an experimentation and a scale that's happening within the AI space”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Looking at the shares of Apple, uh 52- week high, there's a little bit better feeling, I think, about uh iPhone sales in particular.
It's kind of helping this story here today. Mandy Singh joins us. He's our senior technology analyst for Bloomberg Intelligence.
Mandy, what's going on with Apple here? A little bit of a rerating. Is it just trying to catch up?
Is there a different view that's forming out there on these shares? I mean, I would call it a positive data point after the new iPhone launch. And look uh you know everyone was quite negative about Apple's ability to grow unit shipments.
What they're suggesting here is people who were waiting for a new device are upgrading and especially uh China is always a focus given you know what is going on with Nvidia. So, Apple being a hardware company uh you know being able to sell into China is always a positive and looks like uh there are positive uh data points over there as well. So, Mandy, what's the attraction to this one?
I mean, I'm sitting here with the iPhone. I don't even know what this is. I don't I don't even know what model.
I've got the 16. Thank you. But what's the attraction to this new phone?
Why is it doing so much better? Well, so that's why I want to put it in context. It's not as if you know uh at least uh from my vantage point uh we shouldn't be thinking about a big upgrade cycle here.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- apple iphone demand
- market rebound
- tech earnings momentum
- ai in wealth management
- beauty sector m&a
Companies and tickers mentioned
- AAPL
- Apple
- Loop Capital
- Kering
- L 27Or e9al
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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