Apple Inc. saw its shares rise approximately 1.8% to $278.74 during Wednesday's late morning trading, boosting the technology giant's market capitalization to around $4.05 trillion. The stock traded between $272.98 and $279.95 during the session.
Analyst Highlights AI as Growth Catalyst
Bernstein analyst Mark Newman raised his price target for Apple, identifying the company's forthcoming Apple Intelligence and Siri 2.0 platforms as significant growth drivers expected later this year. This optimistic outlook comes despite Newman's note about increasing memory component costs for iPhones, which could pressure hardware margins.
Regulatory Landscape Shows Movement
In a separate development, the UK's Competition and Markets Authority announced that Apple and Google have agreed to initial changes designed to create fairer and more transparent mobile app stores for developers. The CMA continues to examine commission fees, which can reach 30%. The regulator has set a March 3 deadline for feedback on the proposed commitments, which could take effect April 1 if approved.
Proposed modifications include adjustments to app review processes and ranking systems, new guidelines for handling developer data, and enhanced developer access to certain iOS features to improve interoperability with competing products.
Market Context and Forward Indicators
The broader market experienced a rally Wednesday, with technology stocks leading gains following stronger-than-expected U.S. employment data. Investors now turn their attention to Friday's inflation report for signals about future Federal Reserve interest rate decisions.
Apple's annual shareholder meeting is scheduled for February 24, while the company recently provided second-quarter gross margin guidance of 48% to 49%, with CEO Tim Cook noting that memory chip shortages would have a somewhat greater impact during this period.
