Apple’s Foldable Phone, Whoop-Like Band, CXMT Memory Tests Buzz Keep Traders Hooked

Apple stock gained 1.4% over the week, despite a sharp drop after the iPhone maker issued a weaker-than-expected quarterly forecast.

• Apple is considering a screenless fitness band which could resemble the Whoop band, Bloomberg reported.
• Apple has been testing ​memory chips from China's CXMT across product lines in China, including the iPhones and MacBooks, Reuters reported.
• Apple will announce new iPhones, including the highly anticipated foldable iPhone, in September.

Apple is making a number of moves behind the scenes to position itself strongly in a changing hardware market, just as incoming CEO John Ternus prepares to officially take over next month.

Apple is reportedly working on a screenless fitness band that could resemble the Whoop band, according to a new report in Bloomberg, at a time when the product category is getting more attention with the entry of Garmin and Google’s Fitbit.

Apple is indeed taking this industry shift seriously, according to the report, which added that the company is considering new devices with no displays, as well as different types of screens and various sizes, including round screens.

The Foldable iPhone Is One Of Apple’s Biggest Catalysts

One of the biggest draws this year will be Apple’s first foldable iPhone, which is likely to be announced in September. It would be the only major form-factor change in the iPhone’s two-decade history. 

The September launch will be the first under Ternus. Apple issued a weak forecast last week, which overshadowed a strong fiscal third-quarter report. Apple faces pressure from elevated memory chip costs and raised prices for its Macs, iPads and Watches last month but kept iPhone prices unchanged for now. 

On Stocktwits, the retail sentiment for AAPL climbed over the week and was ‘bullish’ on Sunday. AAPL shares rose 1.4% this week and are up 15.5% year to date.

Apple Tests Chinese Memory Chips For IPhones, Mac

Meanwhile, Apple has been testing ​memory chips from China's CXMT across ‌product lines in China including the iPhones and MacBooks, to mitigate a component shortage fueled by ​the AI boom, the Wall ​Street Journal reported on Sunday.

Laptop makers HP and ​Acer ⁠have started using CXMT memory chips in devices sold outside the U.S., the ​newspaper said.

Apple has been lobbying to allow it to contract CXMT in recent months amid a regulatory grey area, according to past reports. CXMT is not currently on the U.S. Commerce Department’s Entity List, although Washington has considered adding it and has imposed export controls that restrict its access to advanced chipmaking technology.  

It is, however, on a Pentagon blacklist tied to alleged Chinese military links, which has created separate restrictions.

If Apple contracts CXMT, it would add competition in the conventional memory market, but HBM should remain relatively insulated where Micron and SK Hynix benefit most from AI demand.

China’s memory chip giant CXMT has become the talk of the town from the U.S. to Asia. And American chipmakers are taking notice. CXMT raised 57.92 billion yuan ($8.6 billion) in its Shanghai IPO last month, making it Asia’s biggest listing this year. 

The stock then soared an eye-popping 466% on its trading debut, lifting the company’s market capitalization to about $487 billion, the highest among companies listed on mainland Chinese exchanges and above Intel’s market value of $462.38 billion at the time.

Apple Brings Alibaba’s Qwen To Macs In China

Apple’s China strategy extends beyond hardware. Reuters reported that Apple published guidance explaining how eligible Mac users in mainland China can connect Alibaba's Qwen AI to the company's Siri assistant and Writing Tools feature. 

The arrangement, which comes a year after Apple and Alibaba announced a partnership, could help Apple compete in China's AI PC market.

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