The question of whether a company that avoids the massive spending of tech giants on AI or one that funds them is more valuable is preoccupying Wall Street. This debate intensified as Apple and Nvidia competed for the title of the world's most expensive company. Although Apple initially held this position this week, Nvidia reclaimed it just a few days after Apple's earnings report on Thursday.
This mutual exchange of views says a lot about the situation. Apple produces phones and computers used by billions of people to access chatbots and AI agents. However, it is accused of lagging in AI, and its core business may offer fewer growth opportunities compared to the rapidly evolving new technology. Furthermore, the company faces a component shortage that has caused concern in the tech industry.
Meanwhile, Nvidia creates chips and developer tools that power AI. These components are vital for the future of the technology, but they are also more susceptible to the uncertainty surrounding that future.
Joe Tigay, portfolio manager at Rational Equity Armor Fund, which prioritizes overall investment returns, stated: 'When we are in the creation phase (AI)... this is where you will watch Nvidia.' He added that in the future, the fund will look for companies that monetize AI consumption, and that 'Apple absolutely wants to be such a company.'
Unlike many of its Big Tech peers, Apple does not invest billions in building new data centers. Instead, its revenue largely depends on iPhone sales—a stable and predictable type of business that attracts investors.
Apple's iPhone revenue grew by 22% in the last quarter compared to the same period last year; total revenue increased by 16% year-over-year and exceeded Wall Street expectations. Nevertheless, analysts are questioning whether the company plans to modernize its successful products for the AI era and develop new ones.
Apple has faced challenges in AI innovation, such as with the Siri AI assistant, whose launch is planned for the fall. However, the success of the iPhone has satisfied some concerns, especially given that Apple may collaborate with other companies like Google to use their AI models.
Bloomberg Intelligence analyst Anurag Rana noted: 'The reason Apple has succeeded is that people finally realized they don't need to spend hundreds of billions to be relevant in this market,' as they will use any best AI model, and the owner of that model company will have the privilege of placing it on the iPhone.
But AI affects the company differently: memory shortages spurred by the construction of AI data centers. Apple has already raised prices on Mac, iPad, and other products, and some analysts believe iPhones may be next. The company recently launched a leasing program for iPhone, iPad, Apple Watch, and Mac customers instead of purchasing, which could make devices more accessible.
Apple reported that it expects even higher memory costs in the September quarter. Shares fell more than 6% after closing trading on Thursday following the release of Apple's earnings report.
CEO Tim Cook stated during the latest earnings call, acting as the company's chief executive officer: 'We were reluctant to raise prices, I would say. We did it because we are in what I would characterize as a century flood of memory pricing, with exponential growth in memory prices.'
Nvidia's chips are essential for AI data centers, propelling its business to cosmic heights. The company reported record revenue in its latest earnings report in May: growth was 20% compared to the previous quarter and 85% compared to the same period last year. The international data corporation told CNN earlier this year that Nvidia holds an 81% share of the revenue market for data center chips.
However, this success means that investors and analysts now expect not less, but explosive growth every quarter. Whether this will justify expectations in the long run largely depends on whether tech giants continue to spend large sums on data centers.
There are also growing concerns that AI companies are supporting each other through a network of financing deals centered around Nvidia. Nvidia has invested billions in companies like OpenAI and Anthropic, which in turn have committed to buying Nvidia chips.
Nvidia chip sales have made it the biggest beneficiary of the AI boom, but consumers still need smartphones or laptops to use AI services like those produced by Apple.
Tigay from Rational Equity Armor Fund observed: 'Nvidia sells the power, and Apple sells the steering wheel.'
The Indian telecommunications regulatory body (TRAI) has updated the mobile application 'TRAI MyCall'. This application allows subscribers of telecommunication services to directly evaluate and report on the quality of voice calls.
This consumer-oriented digital platform provides telecom operators (TSPs) with information about areas where network performance needs improvement, enabling them to take targeted corrective measures.
This initiative underscores TRAI's commitment to a transparent, data-driven, and customer-centric approach to enhancing the quality of telecommunication services. A representative of the body urged all mobile users to download the TRAI MyCall application and regularly share their feedback, emphasizing that every review is important for creating a better calling experience for every consumer.
Jio has announced a special offer for Independence Day for JioFiber and JioAirFiber customers. The company has launched a new package called Freedom Pack, which makes the 100 Mbps plan significantly more advantageous compared to previous offers.
This new Freedom Pack is offered at a price of 10,000 rupees and includes a long validity period—15 months (approximately 450 days). In addition to 100 Mbps download and upload speeds, customers receive unlimited voice calls. When calculated on a monthly basis, the effective cost is about 666 rupees per month, which is lower than the company's standard 100 Mbps plan.
Unlike Jio's regular monthly tariff, where payment is made every month, the Freedom Pack allows users to pay for the service once and use it for a full 15 months. This makes the offer attractive to those planning long-term connectivity usage. The company is promoting this as an Independence Day celebration offer.
The benefits of this package are not limited to just internet; it also provides access to numerous OTT applications and television channel support. According to reports, the package includes over 12 OTT platforms and around 1000 TV channels, although actual bonuses may vary depending on the user and the chosen plan. This offer is available for both JioFiber and JioAirFiber users. It can be purchased through the company's website or the MyJio app, and it is displayed for both new and some existing customers, although availability depends on location and the user's current plan.
Amid growing competition among broadband providers in India in recent months, OTT content, high-speed internet, and long-term plans have become key tools for customer acquisition. Jio's new Freedom Pack is part of this strategy aimed at attracting users who prefer a one-time payment over monthly bills.
For those who only need internet and do not require OTT services, Jio recently introduced new Wi-Fi-only tariffs. However, for users who need internet, TV, and OTT subscriptions, the Freedom Pack might be a more beneficial option. Before deciding to pay 10,000 rupees, it is recommended to check the quality of the JioFiber or JioAirFiber service and network in your area if you are planning to connect or upgrade an existing plan.
