Adam Coons of Winthrop Capital Management says that there is "nothing revolutionary" about Apple's next iPhone and explains why he's still holding the stock.

New York

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Adam Coons of Winthrop Capital Management has expressed a preference for Apple’s business model over its potential in artificial intelligence. Coons mentioned that there is "nothing revolutionary" about Apple's upcoming iPhone release, describing it as just another incremental step in the product’s evolution. Despite the lack of groundbreaking innovation, Winthrop Capital Management continues to hold Apple stock because of its high cash flow and stable business model. 

Coons noted that many firms are heavily emphasizing AI for future earnings and profitability, but he believes the narrative has been overplayed. Instead, Winthrop Capital Management is focusing on Apple’s steady performance and defensive qualities in their asset allocation. According to Coons, even without significant innovations, Apple's sustained business model remains attractive for its stability and cash generating capability. 

Additionally, Coons is exploring other technology sectors, particularly cybersecurity, as areas of interest. He pointed out companies like CrowdStrike and Fortinet as leaders in cybersecurity innovation, highlighting the importance of security in the evolving AI landscape. Coons suggests that investors interested in technology should consider the intersection of AI and security, naming Alphabet and Microsoft for AI pursuits and Fortinet and CrowdStrike for cybersecurity advancements.



VC: 'We like Apple for its sustained business model, not its AI story'

This is the opportunity for Apple to show what their quote-unquote AI narrative story will be going forward. That's something that I think we're personally discounting at our firm. I think it's gone too far with different firms using artificial intelligence as this push for why earnings or profitability can be better than it is right now. I do like the story behind Alphabet and Microsoft with AI, but there's just too many stories out there. I think the story with Apple is this is the incremental next step in another iPhone. I don't think there's that many people that are excited about the next one. Obviously, the cycle will continue with people upgrading, but there's really nothing revolutionary with this next tier with what Apple is coming out with. This is just typical. It's every six months Apple comes out with some next iteration of the iPhone, but I think this is mostly just narrative-based. I do like the stock of Apple with all that. It really comes down to the fact that we're very defensive in our asset allocation right now. When you look at Apple, it's a high cash flow, a very stable business model. We do like that. If everyone else is going to get caught up in the AI story, that's fine, but what we really care about is the fact that they are a sustained business model that pushes off a lot of cash flow without a lot of effort. Even without any big innovation, they're able to do that. As an investor, we like that right now. It's stable. It's defensive. That's what we want to be. That's why we like Apple. It's not about some AI story right now. AI is definitely a clear growth driver, but are you seeing any other opportunities now? What other sectors are worth looking at? Well, if you're in still tech, you want to look at cybersecurity. If you care about AI, if you care about tech at all, you obviously have to care about the security portion of it, because that's going to become more and more important. That's why we like CrowdStrike, Fortinet. Those are companies that are innovating on this cusp of what artificial intelligence can do, because it's not just something that you're using to have it write a paragraph for you. It's also a way for you to break barriers on the security side even faster. Obviously, on the other side of that, you need a security software that can combat that. That's why we like Fortinet and CrowdStrike. They're leaders in that space. I think if you want to be in tech, that's the place to be. You kind of play both sides of it. You want to be in that cloud AI story, Alphabet or Microsoft. On the other end of it, you want to play security, and that's Fortinet and CrowdStrike. That's where we're most overweight right now in our portfolios.

U.S. President Donald Trump outlined a 20-point plan for peace in Gaza as he stood with Israeli Prime Minister Benjamin Netanyahu at the White House. Hamas has yet to comment on the plan.

Washington

Middle East Conflict

Trump, Netanyahu announce plan to end Gaza conflict

Amid growing impatience over the Kremlin’s reluctance to participate in direct talks with Ukraine, Washington is now considering providing Kyiv with Tomahawk missiles, according to U.S. Vice President JD Vance.

Ukraine Invasion

Washington might send Tomahawk missiles to Ukraine, Vance says

The FBI says it is investigating 'an act of targeted violence' after a man crashed his vehicle through the front doors of a Michigan church, opened fire with an assault rifle and set the church ablaze, killing at least four people and wounding at least eight others.

Grand Blanc

Investigators look for motive in deadly Michigan church shooting

Washington is preparing for the arrival of Israeli PM Benjamin Netanyahu, who is set to meet with President Donald Trump at the White House on Monday. President Trump is advancing a plan aimed at securing the release of hostages, ending the war in Gaza, and outlining a post-war strategy.

Netanyahu set to meet Trump at the White House

The military wing of Hamas said it had lost contact with two Israeli hostages held in Gaza City, and called on Israel to pull troops back and suspend air strikes for 24 hours so fighters could retrieve the captives.

Tel Aviv-Yafo

Hamas says it lost contact with two hostages in Gaza City siege

Iran's parliament on Sunday (September 28) condemned what it called "illegal" sanctions, after the United Nations reimposed restrictions over the country's nuclear program at the weekend.

Tehran

Iran parliament slams reimposed UN sanctions as 'illegal'

Ukraine’s President Volodymyr Zelenskyy slammed Russia for the new wave of attacks, which killed at least four in Kyiv, including a child, and accused them of deliberately targeting civilian positions to incite fear and terror. At least 70 others were injured.

Kyiv

At least four killed as Russia launches major offensive on Kyiv

At least 36 people were killed and more than 50 injured on Saturday (September 27) in a stampede at a rally held by Tamil actor Vijay, who is campaigning for election, the chief minister of Tamil Nadu said.

Tamil Nadu

Dozens killed in political rally stampede in India

Hezbollah has commemorated one year since the death of its leader, Hassan Nasrallah, who was killed by Israel during their conflict. At a gathering in Beirut, the group's secretary-general Naim Qassem reaffirmed Hezbollah's refusal to disarm, despite ongoing Israeli attacks and a ceasefire agreement.

Beirut

Lebanon's Hezbollah refuses to disarm

Colombian President Gustavo Petro brushed off reports that his U.S. visa had been revoked, saying, “I don’t care.” The leader was filmed outside United Nations headquarters in New York, where he joined thousands of pro-Palestinian protesters during the General Assembly.

Manhattan

‘I don’t care’: Colombia’s Petro dismisses U.S. visa revocation

Surveillance video obtained by CBS News showed the moments a gunman shot at detainees and agents who were in a van at a Dallas ICE facility on Wednesday. One of the victim's pregnant wife also speaks out.

Dallas

Video shows gunman shooting at detainees, ICE agents

The Trump administration will ask the Supreme Court to decide the constitutionality of the president's executive order on the 14th Amendment, which seeks to curtail birthright citizenship, according to reports. Willie James Inman has the latest.

Supreme Court to decide on birthright citizenship

Powerful monsoon rains in the Southwest are blamed for several deaths in Arizona. The fast-rising water caused flash flooding and chaos. Meteorologist Andrew Kozak has the latest.

Globe

Deadly flooding in Arizona as intense weather sweeps across U.S

Dozens of people have been killed in Gaza on Saturday, as Israel's assault on Gaza City intensifies. In New York this week, Israeli Prime Minister Benjamin Netanyahu spoke about prominent U.S. allies formally recognizing a Palestinian state.

Dozens killed in Gaza as Israel's assault intensifies

At least 36 people were killed and more than 50 injured in a stampede at a rally held by Tamil actor Vijay, who is campaigning for election, the chief minister of Tamil Nadu said.

Karur

According to the Zaporizhzhia Regional Military Administration, a store, ten retail outlets, two apartment buildings, and several non-residential premises were damaged.

Zaporizhzhia

Ukraine goes dark as Russian drone attacks damage facilities

A day after Israeli Prime Minister Benjamin Netanyahu held a fiery speech at the UN General Assembly, at least 44 people have been killed in attacks across Gaza. Ongoing Israeli military operations in Gaza City are forcing more Palestinians to flee.

Trump talks of Israel-Gaza deal as IDF strikes refugee camp

U.S President Donald Trump has signed an executive order outlining the terms of a deal to sell TikTok’s American operation to a group of stateside investors. CBC’s Ashley Fraser breaks down the deal and what it could mean for the social media platform's algorithm.

Toronto

Global Tariffs

Breaking down Trump’s TikTok deal

UN sanctions on Iran that were lifted as part of the 2015 nuclear deal are set to come back in force, essentially killing the landmark agreement. The inability to find a common ground – on all sides - is raising fears of further confrontation.

Sanctions against Iran set to resume after UN vote

Israeli Prime Minister Benjamin Netanyahu addressed the UN General Assembly in New York City on Friday. The leader made defiant statements about the countries that recently recognized the Palestinian state, while U.N. delegates walked out.

Netanyahu makes bold address as U.N. amid delegate walkouts, protests

UN sanctions are set to be reimposed on Iran on Saturday - after a failed bid by Russia and China to delay them. Only four countries voted in favour of the draft resolution.

UN set to reimpose sanctions on Iran on Saturday

Democrats on the House Oversight Committee released more files turned over by the estate of convicted sex offender Jeffrey Epstein.

Washington County

House Democrats release more Epstein files

Israeli Prime Minister Benjamin Netanyahu wore a QR code at the U.N. General Assembly linking to images of Hamas' Oct. 7 attack as Western nations move to recognize Palestine. Dozens of delegates walked out in protest.

Dozens of delegates walk out as Netanyahu speaks at U.N.

A court on Thursday (September 25) sentenced former French president Nicolas Sarkozy to five years in prison over a scheme for late Libyan dictator Muammar Gaddafi to fund his 2007 presidential run.

Paris

Former French president Sarkozy sentenced to five years in prison

The U.S. Justice Department filed criminal charges against former FBI Director James Comey on Thursday (September 25), in a dramatic escalation of President Donald Trump's retribution campaign against his political enemies.

Former FBI chief James Comey charged

U.S. President Donald Trump announced on Thursday new tariffs set to take effect next Wednesday, including a 100% tariff on pharmaceutical drugs. There will also be tariffs on a broad range of imported goods, such as kitchen cabinets, some furniture and trucks.

U.S. to impose new tariffs on pharmaceuticals, some furniture, trucks

US President Donald Trump has hosted his Turkish counterpart Recep Tayyip Erdogan at the White House. The two leaders discussed Türkiye's long-disputed F-35 fighter jets, trade and energy ties as well as regional matters.

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Rise of AI