Apple’s iPhone Demand Recovery Looks Stronger Than Its AI Story

Apple's stock rebounded toward $290 following a weak June jobs report that eased rate-hike concerns, recovering from a 6.5% selloff triggered by price hikes on Macs and iPads due to memory cost inflation. While iPhone demand shows signs of strengthening ahead of the iPhone 18 launch, the improvement is driven by traditional factors rather than AI features, complicating Apple's AI narrative. The company faces dual margin pressures from $1.1 billion in tariff costs and rising component expenses, though ecosystem lock-in may support pricing power. A manufacturing leak in India also exposed supply-chain vulnerabilities.