Apple Abandons Net Cash Target, Eyes AI-Focused Growth Strategy

Apple Inc., listed on NASDAQ as AAPL, has announced significant changes under its new CEO John Ternus. The company will no longer maintain a net cash neutral target, instead evaluating its cash and debt separately to fund research and development (R&D), capital expenditures (capex), and potential mergers and acquisitions (M&A) focused on artificial intelligence (AI). This shift is part of Apple's ambitions to leverage AI in various areas.

The company has reported strong fiscal Q3 results, with revenue increasing 16% year-over-year to $109.4 billion and earnings per share rising 29% to $2.02. Services revenue reached $30.7 billion, while the gross margin stood at 50.1%. Apple also addressed its tax payments to Ireland, where it paid approximately $17.1 billion, including €13 billion in EU-ordered back taxes.

The company is set to implement new EU developer terms from October 1, introducing a 5% commission for alternative marketplaces and web sales, as well as varying in-app fees ranging from 15% to 26%. An analyst has boosted AAPL to 'Buy' with a target price of $400, predicting 14 million foldable iPhone Ultra sales by FY2027 at $2,199 each. Apple is also vetting Chinese memory maker CXMT for iPhones and MacBooks.

The company gained 8% smartphone market share in India during Q2 2026, while Samsung held steady, and Chinese brands declined due to price pressure. There's a possibility that Apple will adopt a 'Fast Follower 2.0' strategy, leveraging robust third-party AI models to cut in-house model work while controlling UX and device distribution.

Apple is planning camera upgrades for new iPhone Pro models, with the Pro Max potentially featuring 6x optical zoom using a five-refraction prism, and the smaller Pro offering 5x-6x optical zoom. Additionally, Apple plans a glass-focused iPhone redesign for 2027, featuring Pro models V73 and V74 with glass front and back, curved sides, and a central metal band.