Morgan Stanley: Siri delays mean fewer Apple iPhone sales this year and next year, too

Following reports that a new, more useful Siri won’t be out till 2027, Morgan Stanley has lowered its Apple iPhone sales estimates for calendar years 2025 and 2026, by 1% and 5%, respectively. Analysts now expect flat sales this year (230 million) and 6% growth next year (243 million), “implying a flatter replacement cycle curve.” They wrote that “an upgraded Siri personal assistant” is the “#1 AI feature prospective iPhone upgraders are interested in when upgrading.”

The analysts also said tariffs on Chinese goods will weigh on the company’s profits, lowering their earnings per share estimate to $8 from $8.52 in fiscal year 2026.

“...while we believe Apple is taking actions to help mitigate tariffs, it’s unlikely that Apple can fully offset this cost without broad tariff exemptions, which have not been granted,” Morgan Stanley wrote.

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Jon Keegan3h

Meta strikes $30 billion deal with Blue Owl to finance Hyperion data center

Meta’s Hyperion mega data center site in Richland Parish, Louisiana, is currently under construction. The city-sized development will be the home to one of the largest data centers in the world, housing around 2 million pricey GPUs, and will scale up to an eventual 5.5 gigawatts.

So, how is Meta planning to pay for this expensive project?

Bloomberg reports that Meta has signed a deal with asset management company Blue Owl Capital to finance $30 billion to pay for the project, marking what could be the largest private capital deal ever.

According to the report, Blue Owl and Meta would co-own the site, with Meta retaining a 20% stake in the project. PIMCO is also part of the financing for the deal, as the anchor lender.

Raising the massive capital to fund all of these huge AI data center projects is pushing companies to use unusual financing arrangements. The Information reported that xAI made such a deal with Valor Equity Partners worth $20 billion to rent the GPUs needed for its Colossus 2 data center.

Blue Owl Seals Largest Private Capital Deal for Meta’s AI Growth

According to the report, Blue Owl and Meta would co-own the site, with Meta retaining a 20% stake in the project. PIMCO is also part of the financing for the deal, as the anchor lender.

Rani Molla6h

EssilorLuxottica surges to record high after saying Ray-Ban Meta glasses helped boost revenue growth

European eyewear company EssilorLuxottica said during its earnings call yesterday that its Ray-Ban Meta glasses helped boost its revenue growth, something that’s sent the ADR up to a record high.

“Clearly, there is a lift coming from Ray-Ban Meta wearables as a product category,” the company’s CFO, Stefano Grassi, said on the call Thursday. “The contribution from Ray-Ban Meta in wearables, as I mentioned before, is in excess of 4 percentage points overall for the group.”

EssilorLuxottica’s revenue was up 11.7% in the third quarter compared with a year ago.

Meta has a nearly 3% stake in the eyewear company, which it has partnered with on the smart glasses. Meta CEO Mark Zuckerberg has also claimed that its Ray-Ban Metas are a hit, saying that the “sales trajectory that we’ve seen is similar to some of the most popular consumer electronics of all time.” We looked at the numbers and aren’t so sure.

Tom Jones

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The revenue race between Anthropic and OpenAI is getting more heated

Hey Claude, when do you think you’ll start making more money than ChatGPT?

44%

Matt Phillips23h

JPMorgan economists estimate that the basket of stocks they use as a rough gauge of AI’s market impact is now worth about 44% of the S&P 500’s total market cap, up from 26% in 2022.

Using a basket of 30 AI stocks picked by the bank’s equity analysts as a barometer of AI, the economists find that American households have seen their aggregate wealth go up by about $5 trillion over the last year as a result of AI, they reported in a note published Thursday.

They also estimate the surge in stock market wealth could raise annualized US consumer spending by some $180 billion, due to wealth effects.

JPM acknowledges some uncertainty around this estimate, noting that the spending impact could be lower “if the wealth gains are accruing disproportionately to upper income households with lower [marginal propensity to spend].”

Jon Keegan23h

Report: Apple’s next MacBook Pro will have a touch screen, a decade after everyone else

Steve Jobs would NEVER!

Apple’s next iteration of the MacBook Pro could have a touch screen, according to a report from Bloomberg.

Apple will be late to the party, as the rest of the industry adopted touch screens years ago. Apple cofounder Steve Jobs famously resisted the idea of a touch screen Mac, but over the years, the lines between Macs and iPads have been blurring.

The new high-end touch screen MacBook Pros are expected to have a slimmer design, run on Apple’s custom M6 chips, and feature a “hole-punch” at the top of the OLED display, matching the design of the iPhone, which allows the camera and sensors to be surrounded by screen at the top of the display.

This week, Apple released an updated MacBook Pro, iPad Pro, and Apple Vision Pro running on the M5 chip.

Apple Readies High-End MacBook Pro With Touch, Hole-Punch Screen

This week, Apple released an updated MacBook Pro, iPad Pro, and Apple Vision Pro running on the M5 chip.

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