Apple Is 'Trying to Hide Something' With Reporting Shakeup: Analyst
*By Chloe Aiello*
Apple shares tumbled on Friday, as investors and analysts processed the tech giant's announcement it would no longer publish unit sales for its iPhones, iPads, or Macs in future earnings reports. Apple executives have insisted the metrics are no longer relevant to investors ー but some analysts don't see it that way.
"When we kind of look at this on the surface, clearly it appears to be that Apple is trying to hide something," CFRA Research's senior industry analyst Angelo Zino told Cheddar Friday.
Despite beating on quarterly earnings and revenue, Apple ($AAPL) [disappointed investors on Thursday](https://cheddar.com/videos/apple-shares-tumble-despite-beating-earnings-expectations) with weaker-than-anticipated guidance for the ever-important holiday quarter, and iPhone unit sales that just missed the mark, notching almost zero growth from a year ago. But perhaps what shocked Apple watchers most was the company's decision to, beginning next quarter, withhold the number of iPhones, iPads, and Macs it sold.
Apple's chief financial officer Luca Maestri announced the change on a conference call with investors following Thursday's earnings report, arguing "a unit of sale is less relevant for us today than it was in the past."
CEO Tim Cook added, "This is a little bit like if you go to the market and you push your cart up to the cashier and she says or he says, 'How many units you have in there?' It doesn't matter a lot how many units there are in there in terms of the overall value of what's in the cart."
Technology analyst Daniel Ives of Wedbush Securities said that although he understands the logic of the decision ー considering average selling prices are all over the board ー it damages Apple's reputation of transparency.
"The Street will find this a tough pill to swallow this morning ... given that tracking iPhone units have become habitual to any investor that has closely followed the Apple story for the last decade-plus and is critical to the thesis," Ives wrote in a note on Friday.
"Skeptics will point to Apple doing this right at the critical juncture where higher \[average selling prices\] are making up for slower unit sales which remains the worry and the stock will get hit accordingly this morning," he added.
Despite their skepticism, both Ives and Zino remain bullish on Apple ー at least for now.
"We are probably going to see a down environment in terms of unit shipments over the next year, but that being said, average selling prices continue to offset those declines," Zino said.
"We are buying on the dip ... we are very positive, we are very bullish on this."
Apple briefly its lost grip on its $1 trillion market capitalization during trading on Friday. The stock ultimately closed the day down about 6.8 percent, putting it in a so-called "correction," more than 10 percent off its all-time highs.
Apple did not immediately respond to Cheddar's request for comment.
For full interview [click here](https://cheddar.com/videos/apple-earnings-spark-concerns).
Holiday shopping heats up as Tom’s Guide editor Kate Kozuch reveals the tech gifts everyone wants, from wellness gadgets to gaming buzz—and how to score deals!
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
The Islamic State group and other militant organizations are experimenting with artificial intelligence as a tool to boost recruitment and refine their operations. National security experts say that just as businesses, governments and individuals have embraced AI, extremist groups also will look to harness the power of AI. That means aiming to improve their cyberattacks, breaking into sensitive networks and creating deepfakes that spread confusion and fear. Leaders in Washington have responded with calls to investigate how militant groups are using AI and seek ways to encourage tech companies to share more about how their products are being potentially misused.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
Waymo's self-driving taxis have been in the spotlight for both negative and positive reasons. This week, the automated ride-hailing taxis went viral after a San Francisco woman gave birth inside a Waymo taxi while on her way to the hospital. A Waymo spokesperson on Wednesday confirmed the unusual delivery. It said the company's rider support team detected unusual activity inside the vehicle and alerted 911. The taxi arrived safely at the hospital before emergency services. Waymo's popularity is growing despite heightened scrutiny following an illegal U-turn and the death of a San Francisco cat. The company, owned by Alphabet, says it is proud to serve riders of all ages.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
