Meta wants a big bite of Apple, Needham says
AAPL•Needham maintained a hold stance on Apple, citing investor concerns about its AI strategy, margins, prices and China exposure; it said Meta or another AI-first rival could weaken Apple's ecosystem and pressure App Store fees.
1. Needham flags competitive risk
Needham said the biggest risk for Apple shareholders is that Meta or another AI-first rival reduces reliance on the iPhone and weakens Apple's ecosystem. Apple may need to lower App Store fees to compete with Meta's lower-cost offering, the brokerage added. Apple shares were marginally down and Meta shares marginally up premarket; through the previous day's close, they were up about 22% and 10% year to date, respectively.
