Apple Owes $5.7 Billion for Infringement of Haptics Patents (1)

Evercore ISI's survey shows strong iPhone 18 upgrade intent, with 61% of consumers planning to buy, and raised its AAPL price target to $380. However, pre-order data shows mixed signals, with initial shorter wait times followed by increases. JP Morgan attributes this to inventory management, not weaker demand. AAPL stock faces $2.7B in pressure from an unspecified source.

A U.S. judge certified a class-action lawsuit against Apple, accusing it of charging inflated fees for Apple Pay transactions. The lawsuit claims Apple extracts $1 billion annually in fees, violating antitrust laws. Plaintiffs argue Apple monopolizes mobile payments on iOS, charging issuers 0.15% on credit card and 0.5 cents on debit card transactions, while Android wallets charge no fees.

Bernstein maintained an Outperform rating and $370 price target for Apple but warned of downside risks to its December-quarter gross margin and EPS due to rising memory chip costs. The firm cut its fiscal first-quarter EPS estimate to $2.87, below consensus, and expects iPhone gross margin of 40.4%, also below consensus. Higher international prices partly offset the pressure, with the global average iPhone price increase about 1.3 percentage points higher than in the U.S.

Apple (AAPL) unveiled the iPhone Duo, its first foldable smartphone, and new AI features for Siri. The Duo starts at $1,999, competing with Samsung's foldables. Apple emphasizes on-device AI for privacy. Analysts project $45B in foldable revenue by 2027. Siri AI's rollout excludes the EU and China initially. Investors will watch consumer response and commercial impact.

Apple has released 12 new products in the past month, including the iPhone 18 Pro, iPhone 18 Pro Max, iPhone Duo, Apple Watch Series 12, Apple Watch Ultra 4, AirPods 5, and Beats 360. The company also introduced new Mac models and accessories. These announcements may impact investor perceptions of Apple's innovation and market position.

Apple agreed to a $250 million settlement for U.S. customers who bought certain iPhone models between June 2024 and March 2025, expecting delayed Apple Intelligence features. Eligible customers may receive $25-$95 per device, with claims due by December 2026. The settlement covers legal fees and taxes, and only applies to specific iPhone models purchased in the U.S.