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Tim Cook
Source: Apple

Apple is holding its annual iPhone event on Tuesday, the company’s seventh virtual launch in a row due to the ongoing pandemic. The company is expected to introduce new iPhones and updates to its AirPods and Apple Watch, according to analysts.

Apple’s hype-filled fall launches are a signature quirk of the company. They garner worldwide media attention, millions of viewers on YouTube and Apple’s website, and set the stage for a holiday season marketing blitz when Apple’s sales are the highest.

All of Apple’s product segments have been on a tear this year as people continue to work from home. Last quarter, iPhone revenue was up 50% year-over-year, Mac revenue was up 16% year-over-year and iPad revenue was up 12% year-over-year. Its “other products,” business which includes devices like watches and AirPods, was up 40% year-over-year. Apple can keep the momentum going with a fresh slate of new products ahead of the holidays.

Last year, due to Covid, Apple revealed its new watches in September and then followed that event with an October iPhone 12 event. The iPhone 12 introduced an all-new design and 5G.

New iPads and MacBooks Pro laptops are due for an update this fall, too. It’s unclear whether Apple will pack all of its fall launches into one release event or if it will spread them out over multiple streaming events as it did last fall.

Here’s what Apple could launch on Tuesday.

iPhone

iPhone 12 Mini and iPhone 12 Pro Max.
Todd Haselton | CNBC

Apple’s most important product is the iPhone, accounting for half of Apple’s 2020 sales. The company has announced new models every September since 2012, until last year when iPhones were revealed in October.

In 2020, Apple released four iPhone models: a smaller $599 iPhone 12 mini, the $829 iPhone 12, the higher-end $999 iPhone 12 Pro and the $1,2099 iPhone 12 Pro Max. All of the iPhone 12s came with 5G connectivity and a new, more squared-off design.

Expect this year’s lineup to be similar to last year’s with the same screen sizes and prices. Research from TF Securities analyst Ming-Chi Kuo, a leading Apple analyst, suggests the big change this year could be a smaller notch cutout at the top of the iPhone’s screen, which holds the device’s facial recognition cameras. The size of the notch has remained the same since it was introduced in 2017.

The new iPhones could also have bigger batteries and a slightly heavier weight thanks to a new internal-space-saving design, according to Kuo. In previous years, new iPhones have come with camera and processor upgrades, and that’s almost certain to happen this year, according to Kuo.

We don’t know yet what Apple will call the new iPhones. Apple has named some previous devices “S” devices, which signify that they mainly have internal changes, which would fit in with this year’s expectations. That means it could be called the iPhone 12s, or it could be named the iPhone 13 if Apple decides the changes are enough to warrant it. We don’t know yet.

Apple Watch

Apple Watch Series 6 in blue
Todd Haselton | CNBC

Apple has released new Apple Watch models every September since 2016. It’s a key product in Apple’s wearables business, which accounted for 11% of Apple’s 2020 sales.

Last year, Apple introduced the high-end Series 6 and the mid-range Apple Watch SE. This year’s high-end Apple Watch is likely called the Apple Watch Series 7. Kuo predicted last year that the 2021 models would be a “significant form factor design change.”

The design will also include a slight increase in screen size, according to Bloomberg News, which would be equivalent to 16% more pixels on the watch’s display. Bloomberg said Apple will introduce new watch faces to take advantage of the larger screens, including one that would allow a user to see all 24 time zones simultaneously.

Some Apple Watch models may be in short supply due to production issues. Nikkei Asia said this month Apple delayed manufacturing because of assembly challenges. The report also suggested Apple could add blood-pressure sensing this year, but The Wall Street Journal said and Bloomberg have said the feature won’t come this year. Apple declined to comment on Watch production.

In past years, when Apple has had issues producing millions of devices ahead of a launch, it delayed the release date by weeks or months after the launch presentation. In 2017, for example, it announced the iPhone X in September but didn’t ship it until November.

AirPods

A man shows AirPods Pro at an Apple store on East Nanjing Road on October 30, 2019 in Shanghai, China. Apple’s new AirPods Pro with active noise cancellation are on sale on October 30 in China.
Wang Gang | VCG | Getty Images

AirPods are a key component of Apple’s wearables business, which accounted for over $30 billion in annual revenue in 2020, a 25% increase over the year before.

Although the product is growing in importance to Apple, the company hasn’t launched new AirPods since October 2019 when it introduced the higher-end AirPods Pro with a new design and noise canceling. The most recent regular $159 AirPods, without noise canceling, were announced in March 2019.

In a note to investors over the weekend, Kuo said Apple will launch new AirPods 3. He said Apple may continue to sell the current AirPods at a lower price. The re-design will likely make the AirPods look more like AirPods Pro, with a wider case and shorter stems, according to Bloomberg.

iPad

The 5th generation iPad mini
Todd Haselton | CNBC

If Apple announces new iPads, it will emphasize how important the product has become for the company as the Covid-19 pandemic forced people to work and learn from home and driving a boost in computer sales.

In the three quarters reported so far in Apple’s fiscal 2021, the company has reported $23.6 billion of iPads revenue, over a 39% increase from the same period last year.

Apple last updated the iPad Air, a mid-range option, with an edge-to-edge screen in September 2020. Apple’s also updated the chip in its least expensive iPad, a $329 tablet which it simply calls iPad, at the same event. Those are due for a refresh this fall, though it’s unclear if that will happen on Tuesday or at a second event. But the iPad Mini, last refreshed in March 2019, is most overdue for a refresh.

The iPad Mini could be getting a redesign by the end of the year to make it look more like its siblings, according to Bloomberg. The report said it won’t have a home button and will have a more square design like Apple’s iPad Air and Pro. That means it could have a fingerprint reader in the power button like the iPad Air, or Face ID like the iPad Pro.

Everything else

Tim Cook, CEO of Apple, speaks during an Apple Event on April 20th, 2021.
Source: Apple Inc.

This is a product event, so don’t expect any commentary from Tim Cook on recent controversies including its plan to scan iCloud uploads for illegal material, the recent mixed decision in the App Store lawsuit against Epic Games, or thoughts on the company’s decision to delay a return to in-office work until next year.

However, Apple sometimes uses its iPhone launches to highlight non-product projects the company is working on, such as its efforts to become carbon neutral across its supply chain in the next 10 years.

If Apple talks about its climate efforts, expect VP Lisa Jackson to address the audience. Past events also have included musical guests or celebrity appearances.

Apple sometimes releases new services at fall launches, such as Apple One, its bundle of subscription services, which launched last year. But the big update to iOS is announced in June, at the company’s developer conference, and is typically released to everyone in the fall.

There’s another wildcard. Apple’s biggest, fastest MacBook Pro laptop, the 16-inch model, hasn’t been updated since November 2019, and still sports Intel processors even as the company moves to its own chips in laptops and desktops.

However, in the past decade, Apple hasn’t launched new Mac computers at the same event as new iPhones. There may be a separate event in October or November if new Macs are in the fall pipeline.

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Dubai government to accept crypto payments through Crypto.com partnership

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Dubai government to accept crypto payments through Crypto.com partnership

Crypto.com logo displayed on a phone screen with representation of cryptocurrencies.

Nurphoto | Nurphoto | Getty Images

Dubai’s Department of Finance announced a partnership with crypto platform Crypto.com that will allow government service fees to be paid with cryptocurrencies.

The memorandum of understanding between Dubai government officials and Mohammed Al Hakim, president of Crypto.com UAE, was signed Monday on the sidelines of the Dubai FinTech Summit.

Government officials said in a press release that the partnership will help achieve the “Dubai Cashless Strategy,” which seeks to solidify Dubai’s status as a leading digital city. The strategy aims to reach 90% cashless transactions across Dubai’s public and private sectors by 2026.

Once technical arrangements for the initiative are finalized, individuals and “businesses customers of government entities” will be able to pay service fees through digital wallets on Crypto.com.  

“The platform will securely convert these payments into Emirati dirhams and transfer them to Dubai Finance accounts, ensuring a streamlined, secure, and innovative payment framework,” Dubai Finance added. 

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Crypto.com’s Al Hakim called the initiative a “truly global first programme.” However, the announcement did not clarify what types of digital currencies the department of finance would accept, or for which types of government fees covered by the agreement. 

Crypto.com and Dubai Finance did not immediately respond to a request for comment from CNBC. 

Crypto.com first received a license for its Dubai entity to offer regulated virtual asset service activities in 2023. Last month, the company said Dubai’s virtual asset regulatory body had also issued a limited license to offer derivatives.

Dubai has been betting on the crypto industry for years as part of its ambition to become a global tech hub. 

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SoftBank Vision Funds swing to annual loss as investment gains slow by 40%

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SoftBank Vision Funds swing to annual loss as investment gains slow by 40%

SoftBank CEO Masayoshi Son delivers remarks next to U.S. President Donald Trump at an ‘Investing in America’ event in Washington, D.C., U.S., April 30, 2025.

Leah Millis | Reuters

Softbank‘s Vision Fund business on Tuesday posted a loss in the fiscal year ended March as it booked slowing gains at its massive tech investment arm.

SoftBank said it notched a gain on investment at its Vision Funds of 434.9 billion yen in the fiscal year, a 40% fall from the 724.3 billion yen booked in the previous year.

In its fiscal fourth quarter — the three months ended March — SoftBank’s Vision Funds segment recorded a 26.1 billion yen gain, helped by a rise in the value of TikTok owner ByteDance.

The Vision Fund segment overall logged a pretax loss of 115.02 billion yen ($777.7 mllion) versus a profit of 128.2 billion yen in the previous fiscal year.

For the latest fiscal year, SoftBank saw gains on its investments in Chinese ridehailing company Didi as well as South Korean e-commerce firm Coupang. However, the performance of its investment arm was hurt by a drop in value of companies including AutoStore.

The Vision Funds are a key focus for investors who are looking for signs of improvement at SoftBank’s huge investment arm, after it swung to a surprise loss in the company’s fiscal third quarter.

SoftBank’s investment division can be inconsistent, as it is driven by changes in public and private financial markets.

SoftBank’s stock is down about 17% this year as volatility in financial markets and concerns about the macroeconomic environment continues to weigh on the company.

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SoftBank founder Masayoshi Son has sought to position company as a key player in artificial intelligence through various investments and acquisitions. The firm owns the majority of semiconductor designer Arm and announced plans this year to acquire server chip designer Ampere Computing for $6.5 billion. Ampere’s semiconductors are designed to run AI applications.

One of SoftBank’s biggest AI bets has been on OpenAI, the creator of ChatGPT. SoftBank invested $30 billion in OpenAI as part of a broader $40 billion financing round in March that valued the startup at $300 billion.

Softbank is also involved in Stargate, a joint venture that was unveiled by U.S. President Donald Trump in January, calling for hundreds of billions of dollars of investment into AI infrastructure.

There are still questions about how SoftBank plans to finance these ventures and whether it will need to sell down some of its holdings in companies like Arm.

Citing people familiar with the matter, Bloomberg had on Monday reported that dozens of financial players are reassessing investment in data centers due to growing economic volatility, and SoftBank has yet to come up with a financing template for Stargate.

Yoshimitsu Goto, chief finance officer at SoftBank, said during a Tuesday press conference that media reports of banks hesitating to fund SoftBank’s efforts are not true.

“We are very much making progress,” Goto said.

He added there are around 100 proposals being made for sites to build data centers as part of Stargate, with the first facilities likely to be in Texas.

SoftBank swings to profit

SoftBank posted its first annual profit in four years at 1.15 trillion yen.

While the Vision Fund was an overall drag on profit, it was a big gain in SoftBank’s older investments in Alibaba, T-Mobile and Deutsche Telekom, that helped drive its overall profit.

Arm and SoftBank’s telecommunications business also contributed positively to the group’s overall profitability.

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Fintechs that raked in profits from high interest rates now face a key test

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Fintechs that raked in profits from high interest rates now face a key test

The app icons for Revolut and Monzo displayed on a smartphone.

Betty Laura Zapata | Bloomberg via Getty Images

Financial technology firms were initially the biggest losers of interest rate hikes by global central banks in 2022, which led to tumbling valuations.

With time though, this change in the interest rate environment steadily boosted profits for fintechs. This is because higher rates boost what’s called net interest income — or the difference between the rates charged for loans and the interest paid out to savers.

In 2024, several fintechs — including Robinhood, Revolut and Monzo — saw a boost to their bottom lines as a result. Robinhood reported $1.4 billion in annual profit, boosted by a 19% jump in net interest income year-over-year, to $1.1 billion.

Revolut also saw a 58% jump in net interest income last year, which helped lift profits to £1.1 billion ($1.45 billion). Monzo, meanwhile, reported its first annual profit in the year ending March 31, 2024, buoyed by a 167% increase in net interest income.

Robinhood's earnings by the numbers: Here's what you need to know

Now, fintechs — and especially digital banks — face a key test as a broad decline in interest rates raises doubts about the sustainability of relying on this heightened income over the long term.

“An environment of falling interest rates may pose challenges for some fintech players with business models anchored to net interest income,” Lindsey Naylor, partner and head of U.K. financial services at Bain & Company, told CNBC via email.

Falling benchmark interest rates could be “a test of the resilience of fintech firms’ business models,” Naylor added.

“Lower rates may expose vulnerabilities in some fintechs — but they may also highlight the adaptability and durability of others with broader income strategies.”

It’s unclear how significant an impact falling interest rates will have on the sector overall. In the first quarter of 2025, Robinhood reported $290 million of net interest revenues, up 14% year-over-year.

However, in the U.K., results from payments infrastructure startup ClearBank hinted at the impact of lower rates. ClearBank swung to a pre-tax loss of £4.4 million last year on the back of a shift from interest income toward fee-based income, as well as expenditure related to its expansion in the European Union.

“Our interest income will always be an important part of our income, but our strategic focus is on growing the fee income line,” Mark Fairless, CEO of ClearBank, told CNBC in an interview last month. “We factor in the declining rates in our planning and so we’re expecting those rates to come down.”

Income diversification

It comes as some fintechs take steps to try to diversify their revenue streams and reduce their reliance on income from card fees and interest.

For example, Revolut offers crypto and share trading on top of its payment and foreign exchange services, and recently announced plans to add mobile plans to its app in the U.K. and Germany.

Naylor said that “those with a more diversified mix of revenue streams or strong monetization of their customer base through non-interest services” are “better positioned to weather changes in the economy, including a lower rates environment.”

Dutch neobank Bunq, which targets mainly “digital nomads” who prefer not to work from one location, isn’t fazed by the prospect of interest rates coming down. Bunq saw a 65% jump in annual profit in 2024.

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“We’ve always had a healthy, diverse income,” Ali Niknam, Bunq’s CEO, told CNBC last month. Bunq makes money from subscriptions as well as card-based fees and interest.

He added that things are “different in continental Europe to the U.K.” given the region “had negative interest rates for long” — so, in effect, the firm had to pay for deposits.

“Neobanks with a well-developed and diversified top line are structurally better positioned to manage the transition to a lower-rate environment,” Barun Singh, fintech research analyst at U.K. investment bank Peel Hunt, told CNBC.

“Those that remain heavily reliant on interest earned from customer deposits — without sufficient traction in alternative revenue streams — will face a more meaningful reset in income expectations.”

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