Rothschild & Co Redburn has upgraded Apple (AAPL) to Buy from Neutral and raised its price target to $400 from $260, citing stronger-than-expected iPhone growth driven by the company’s planned entry into the premium foldable smartphone market. Analyst Timm Schulze-Melander and the firm project iPhone sales growing at a 12% compound annual rate through fiscal 2030 — up to 14% above consensus expectations. The key catalyst is the anticipated launch of the iPhone Ultra, Apple’s first foldable device, expected to expand the premium segment and lift average selling prices. Rothschild forecasts the foldable model will contribute meaningfully to unit growth with limited cannibalization of traditional iPhone sales. The firm’s iPhone earnings estimates run ahead of consensus, and a “strategic reset” in Apple Intelligence further supports its outlook, leaving overall fiscal 2030 estimates roughly 18% above the Street. Rothschild expressed confidence that Apple’s relative valuation multiple remains well supported. Beyond hardware, the firm sees opportunity for Apple to position itself as a gatekeeper of consumer AI. By potentially leveraging a fleet of open-source models and monetizing through Apple Pay and other payment platforms, Apple could strengthen its high-margin Services business while reducing reliance on third-party closed models. The upgrade comes as Apple trades near recent levels around $305, implying significant upside to the new $400 target. While risks such as production challenges for the foldable device remain, Rothschild views the combination of product innovation and AI optionality as underappreciated by the market. MacDailyNews Take: From Schulze-Melander’ lips to Mr. Market’s ears! Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Rothschild & Co Redburn upgrades Apple to Buy, raises price target to $400 appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Rothschild & Co Redburn upgrades Apple to Buy, raises price target to $400
Friday, August 14, 2026
U.S. Supreme Court clears path for App Store commission showdown as Apple must defend its rates in lower court
In a significant development in the long-running legal battle between Apple and Epic Games, the U.S. Supreme Court has rejected Apple’s bid to pause proceedings over the commissions it charges developers for sales made outside the App Store. Justice Elena Kagan on Thursday denied Apple’s request for a stay, allowing the lower court to move forward with determining a permissible commission rate while the high court considers a related appeal. The decision supersedes a temporary pause Kagan had imposed the day before, clearing the way for U.S. District Judge Yvonne Gonzalez Rogers to oversee the rate-setting process. This stems from earlier findings that Apple violated an injunction by imposing restrictive rules and a 27% commission on external “link-out” purchases — transactions where users are directed from an iOS app to complete a purchase on the web or elsewhere. Background on the Epic v. Apple Fight The core dispute traces back to Epic’s antitrust challenge against Apple’s App Store practices. Courts previously ruled that Apple’s anti-steering rules limited competition by making it harder for developers to steer users toward alternative payment methods. After Apple implemented a high commission and other barriers, Judge Gonzalez Rogers found the company in contempt in 2025. The Ninth Circuit later upheld the contempt finding but reversed an outright ban on any commissions, directing the lower court to set a rate limited to costs that are “genuinely and reasonably necessary” for coordinating external links. Apple has been charging zero commission on these external purchases in the U.S. since the contempt ruling, a status that remains in place for now. The Supreme Court has agreed to review the contempt finding itself (with arguments expected in the October 2026 term), but that review will not halt the parallel rate proceedings. Apple’s Proposed Rates Following the Supreme Court’s order, Apple submitted its proposal for commissions on linked-out purchases: • 15% for standard apps (those subject to the usual 30% in-app purchase fee) • 10% for participants in programs like Video Partner, News Partner, and Mini Apps, as well as subscription renewals • 5% for Small Business Program apps Apple maintains these rates are justified to recover costs related to App Store infrastructure, tools, and services. Critics, including Epic, argue that under the Ninth Circuit’s standard—focused narrowly on coordination costs for external links — the justified rate could approach zero. Epic has indicated it will challenge Apple’s proposal with expert analysis. What’s Next Epic will have an opportunity to respond (reports suggest around 60 days), followed by further briefing and a hearing before Judge Gonzalez Rogers. The outcome will determine the commission structure governing external purchases for U.S. developers going forward. Meanwhile, Apple continues to prepare its Supreme Court briefing on the contempt issues. Developers may see lower costs for external sales in the near term, but the final rate — and any broader implications from the Supreme Court — could reshape how commissions work for years to come. MacDailyNews Take: The whole thing is ludicrous. Again, it’s Apple’s App Store, not Epic’s. Apple has a right to charge developers for use of its App Store. Apple’s commission (reduced to 15% for most app developers) has always funded the secure infrastructure, rigorous app review process, fraud protection, payment systems, and ongoing platform development that benefit users and honest developers. Epic wanted all the upside of that ecosystem with none of the contribution. The bottom line is clear: Epic Games wants to enjoy all of the benefits of Apple’s App Store, including access to well over one billion of the world’s most affluent users for free. That is illogical, unfair, and, basically, theft. – MacDailyNews, May 4, 2021 How much did it cost developers to have their apps burned onto CDs, boxed, shipped, displayed on store shelves prior to Apple remaking the world for the better for umpteenth time? Apple incurs costs to store, review, organize, surface, and distribute apps to over one billion users. — MacDailyNews, June 10, 2022 Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post U.S. Supreme Court clears path for App Store commission showdown as Apple must defend its rates in lower court appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Apple’s MacBook Neo 2 expected to sport 12GB of memory in key upgrade
Apple’s budget-friendly MacBook Neo has been a hit since its March 2026 launch, but the biggest complaint from many users centers on its 8GB of unified memory. According to recent reports from Bloomberg News’ Mark Gurman and other sources, the MacBook Neo 2 — or MacBook Neo (2027) is expected to address that limitation head-on by sporting 12GB of memory. The current MacBook Neo relies on a binned A18 Pro chip paired with 8GB of unified memory. The next model is tipped to switch to an A19 Pro chip (the same family powering recent iPhone models), which comes configured with 12GB of memory. That represents a 50% increase and should deliver noticeably better multitasking headroom, smoother performance with multiple browser tabs or apps open, and stronger support for on-device Apple Intelligence features that benefit from extra memory. Rumors indicate the MacBook Neo 2 will retain the same compact, lightweight design and focus on affordability rather than a full redesign. New color options beyond the existing Silver, Blush, Citrus, and Indigo finishes are also expected. Performance gains from the A19 Pro are projected in the 10-15% range for CPU tasks and higher for GPU workloads, thanks in part to built-in Neural Accelerators. No official announcement or exact release date has been confirmed by Apple. Reports point to a 2027 launch, potentially in the first half of the year, keeping the Neo positioned as Apple’s most accessible MacBook while closing some of the gap with higher-end models that start at 16GB of memory. MacDailyNews Take: The jump to 12GB of memory could make the MacBook Neo 2 an even more compelling option for students, everyday users, and anyone who wants solid Apple Silicon performance on a budget. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple’s MacBook Neo 2 expected to sport 12GB of memory in key upgrade appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Rothschild & Co Redburn upgrades Apple to Buy, raises price target to $400
Rothschild & Co Redburn has upgraded Apple (AAPL) to Buy from Neutral and raised its price target to $400 from $260, citing stronger-...
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