The past week has been a busy one for Apple Inc. (AAPL) as the tech giant made several significant moves in the industry. From securing a majority of Taiwan Semiconductor Manufacturing Company’s (TSMC) initial 2nm chip production to introducing an “Alternative App Store” model in the European Union, Apple’s actions have had far-reaching implications. Additionally, an Apple Watch feature saved a teenager’s life, and the new Apple Vision Pro has been making waves in the market.
One of the most notable developments is Apple’s acquisition of most of TSMC’s initial 2nm chip production. This aligns with Apple’s previous strategy of utilizing TSMC’s advanced chips in its products. The 2nm chips are expected to be featured in the iPhone 17 Pro lineup, set to be released in 2025.
In another move, Apple introduced an “Alternative App Store” model for its users in the EU. This model requires developers who want to use third-party app stores or payment providers to pay a “Core Technology Fee.” This move could potentially have Meta Platforms Inc. (META) and other developers paying millions in yearly payments.
Apple’s innovative features have also been making a difference in people’s lives. A 14-year-old boy suffering from severe altitude sickness in Peru was saved thanks to the blood oxygen detection feature of an Apple Watch. Despite the feature being banned in the U.S. due to a patent dispute with Masimo Corp. (MASI), it continues to function on devices sold before the ban.
However, not all industry leaders are convinced of Apple’s success. Greg Peters, co-CEO of Netflix Inc. (NFLX), expressed skepticism about the market relevance of Apple Vision Pro. He believes that the market isn’t large enough to yield a return on investment for app development.
Despite the skepticism, Apple Vision Pro has exceeded expectations in terms of sales. Analysts at Wedbush were surprised by the sales numbers, estimating them to be more than double what was expected. The pre-orders for the Vision Pro were described as “better than expected” by tech analyst Ming-Chi Kuo, and Wedbush referred to the numbers as “very impressive.”
Overall, it has been an eventful week for Apple Inc. with significant advancements in chip production, app store models, and life-saving features. While there may be skepticism about the market relevance of certain products, Apple continues to surprise with its sales numbers and innovative offerings. It will be interesting to see what the future holds for the tech giant and how these developments will shape the industry.
