Will the iPhone 15 be more expensive? - 9to5Mac

Leading up to the announcement of the iPhone 14 last fall, there were rumors that the iPhone 14 Pro models would be more expensive than their predecessors. In the end, Apple kept prices the same…but now the same rumors are circulating ahead of the iPhone 15 Pro launch later this year.

iPhone 15 price increase?

According to a sketchy and unverified report on Weibo, Apple is planning to increase the price of the iPhone 15 Pro series as a way to further widen the gap between these models and the iPhone 15 Plus. Meanwhile, industry analyst Jeff Pu has also predicted a price increase for the iPhone 15 Pro and iPhone 15 Pro Max, in a report sent to investors.

Most recently, Bloomberg reported that Apple is considering a price increase for the iPhone 15 Pro and iPhone 15 Pro Max.

On a quarterly earnings call earlier this year, Apple CEO Tim Cook suggested that customers are willing to splash out to get the best iPhone possible: “I think people are willing to really stretch to get the best they can afford in that category,” he said. This was perhaps an early indicator that more iPhone price rises were being discussed.

No further details on potential prices are provided in these reports. Ahead of the iPhone 14 Pro launch, sources such as Ming-Chi Kuo predicted price increases of about $100 across the board. This would have put the iPhone 14 Pro at a starting price of $1,099, and the iPhone 14 Pro Max at a starting price of around $1,199.

Something else to keep in mind is that Apple has already increased the price of the iPhone in many countries around the world. For example, the ‌iPhone 14 Pro‌ starts at £1,099 in the UK compared to £949 for the iPhone 13 Pro.

9to5Mac’s Take

One thing that I always think is important to remember is that Apple locks in prices and deals for many of its components more than a year ahead of time. It also buys at such high quantities, especially for iPhone components, that it is better able to weather price increases than other companies.

This is likely how Apple was able to maintain the same pricing for the iPhone 14 lineup, despite concerns around inflation and the broader macroeconomic environment. Avoiding price increases with the iPhone 14 gave Apple a leg-up on many of its competitors, who were forced to increase prices due to component prices.

But while we may have escaped price increases with the iPhone 14 lineup, I don’t expect us to do it again this year. I’m not at all surprised to hear rumors that the iPhone 15 Pro and iPhone 15 Pro Max (iPhone 15 Ultra?) will be more expensive than their predecessors.

Interestingly, recent rumors suggest that the iPhone 15 and iPhone 15 Plus will not see any price increases in the United States. This is despite reports that these devices will see notable upgrades in camera hardware alongside the addition of the Dynamic Island.

What are your guesses on iPhone 15 prices? Should Apple turn the dials or leave everything the same? Let us know in the comments.

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Chevy Blazer EV models get price increases as it rolls into dealerships - The Verge

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Chevrolet’s all-electric Blazer SUV could cost $10,000 more than previously announced, depending on which version you’re waiting for.

By Umar Shakir, a news writer fond of the electric vehicle lifestyle and things that plug in via USB-C. He spent over 15 years in IT support before joining The Verge.

Photo by Andrew Hawkins / The Verge

Chevy’s Blazer EV is now going to cost interested buyers quite a bit more. Customers who have ordered the all-wheel-drive RS trim of the electric SUV will see their prices jump to $60,215, up from its original announcement of $51,995.

After destination fees, customers can expect to pay about $10,000 more for the 2024 Blazer EV RS AWD, which dealers will start to receive in August. Chevy also plans to build the 2LT AWD versions this fall, which will now cost $56,715 compared to its previous price of $47,595 a year prior.

The move is in contrast to recent EV price cuts from automakers like Ford, which reduced prices on its Mustang Mach-E SUV, including the Premium AWD trim, which has dropped from $53,995 to $49,995, and the F-150 Lighting truck, which is now up to $10,000 cheaper — as the automaker’s seen an increase in inventory at dealerships.

Uncertainty amongst demand for electric vehicles has even led Tesla to reduce prices on its vehicles multiple times, including its top-selling Model Y SUV, which its Long Range trim is now $50,490 compared to $65,990 in January. Eligibility for new federal credits has also been a factor in fluctuating price tags.

Meanwhile, the base Chevy Blazer EV 1LT model, which was originally targeted for a Q1 2024 release and a cost of $44,995, now has an unspecified 2024 release date. Chevy will instead use the spring 2024 timeframe to build the highest-end SS-trim versions.

The above-base 2LT AWD model includes a 17.7-inch infotainment screen and an 11-inch digital instrument panel, along with heated steering, heated front seats, heated side mirrors, wireless phone charging, and 360-degree surround vision cameras, automatic power lift gate, and adaptive cruise control.

Chevy plans to reveal pricing on the GM-estimated 293-mile range FWD versions of the 2LT, plus a FWD variant of the RS closer to their 2024 launch date. The RS AWD model includes everything the 2LT has, including a now EPA-estimated 279-mile range on a full charge.

The RS also gets extra sporty trimmings like gloss black finishes, RS badge, a different grille, 21-inch wheels, a flat-bottom steering wheel, animated exterior lights, rear seat heaters, heated wipers, heads-up display, rear camera mirror, and self-seal tires. Chevy will also release a RWD version of the Blazer EV RS, which will be built alongside the 2LT, come with Bose audio, have a 320-mile range (GM’s estimate), and cost $61,790.

After GM seemingly ended its affordable EV dream with the Bolt’s death earlier this year (the company announced last week that it would return to the lineup), the Blazer EV was expected to take the role of the automaker’s attainable electric SUV. And now that the future Bolt will share the same Ultium EV platform as the Blazer (and GM’s other upcoming EVs), Chevy might not be as worried about asking a bit more for an EV it can actually deliver this year.

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Piper Sandler hikes Apple stock price target to $220 on long-term forecast - AppleInsider

While Apple may see earnings below Wall Street's expectations on the quarter, the iPhone 15 and strong China results have driven an Apple Stock price target increase by investment bank Piper Sandler.

Analysts are offering their opinions on Apple's financial status ahead of the August 3 Q3 2023 financial results release. In the view of Piper Sandler, the quarter after that is more interesting.

In a note to investors seen by AppleInsider, Harsh Kumar at Piper Sandler uses its "Apple Earnings Preview" to discuss Chinese demand for the most part, with the majority of attention being on the September quarter, rather than the June one about to be released by the company.

The June-specific comments has analysts expecting Apple to "slightly miss Street EPS expectations of $1.19 by between $0.02 to $0.04." Overall revenue is similarly going to miss the street's $81.7 billion estimate, by being "slightly lower."

"Overall, we feel that Apple will be able to execute in its key segments and markets for the June quarter," the report states.

Discussing China, Apple's iPhone is "gaining meaningful share" despite concerns about a potential slowdown. "We beg to differ and believe that the Chinese population is selectively choosing iPhones over Android devices," Piper Sandler asserts, with "positive momentum" over the last three quarters.

"We believe that the concerns about China's slow-down for iPhone might be at a minimum relatively, if not completely, overblown."

Apple should get about 10% of its sales from iPhones sold in China, the analysts reckon. On the assumption the Chinese market declines in the mid-single digits and Apple keeps up with the pace in what is proposed is the "worst case scenario," the impact will only amount to 0.5% of Apple's iPhone sales in the quarter.

Meanwhile, India is serving as a rapidly emerging market for Apple, with prospects to become a 4% contributor of iPhone sales in the June quarter.

"Overall, we feel that Apple is holding up a lot better in the Chinese end market, and might be able to offset meaningful declines if any," summaries the analysts.

Much of the report discusses September results, with the June quarter setting Apple up for the next period. Expecting Apple to not provide guidance for the quarter, Piper Sandler estimates "Apple will deliver September assumptions that will match or slightly exceed street expectations" based on China and India success.

For September, Piper Sandler reckons the Street will be "comfortable" with a $90.3 billion revenue forecast and a 1.36 EPS.

Piper Sandler rates Apple with a price target of $220, a raise from the $200 it set in January 2022.

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iPhone 15 May Get Thinner Bezels, Higher Price - CNET

The next iteration of the iPhone family is expected to get a slew of updates in the fall, including thinner bezels, Dynamic Island and USB-C, along with a higher price tag.

One of the biggest changes you can expect, according to Bloomberg’s Mark Gurman, is an upgrade for the standard iPhones that will swap out the display notch for Dynamic Island, a feature introduced last year on the iPhone 14. The feature enlarges and shrinks when you receive a call and to display the music you're playing, timers and other notifications.

The iPhone 15 and 15 Plus are also expected to get camera improvements, including updated lenses, Gurman wrote.  

The higher-end iPhones are expected to get a makeover that sports a thinner bezel, thanks to a new production technology, Gurman reported Monday. Using low-injection pressure over-molding, or LIPO, Apple plans to shrink the border size around the iPhone 15 Pro and Pro Max display from about 2.2 millimeters on current iPhones to 1.5 millimeters, he reports. The technique may be used on future iPads, as well.

Read more: iPhone 15 Pro Could See Longer Battery Life From New Chip Line

The phones will also get a power boost, thanks to an upgrade for the standard models to the A16 chip currently used on the iPhone 14 Pro. The iPhone 15 Pro will also see an upgrade with the 3-nanometer chip, which Apple manufacturing partner Taiwan Semiconductor Manufacturing Co. has said consumes 30% to 35% less power compared with its 5-nanometer chips.

Gurman also highlighted the move from the Lightning port to a USB-C charging port, a change that may be required by new EU rules that say all mobile phones sold in the EU will need to have a USB-C charging port by the end of 2024.

Gurman expects all of this to add up to at least a minor bump in price, but he didn’t offer an estimate.

Apple has not announced any information about the next iPhone, but the company will likely unveil details of its next smartphone at the next iPhone event -- probably in September.

Apple didn't respond to CNET's request for comment.

For more, check out why the iPhone 15 might need a different charger, the 15 features we really want to see on the iPhone 15 and hidden features in iOS 17 you should know about.

 

 

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Israel-Saudi normalization may be worth the price - editorial - The Jerusalem Post

Although the details are murky, it appears as though the United States is pushing for an agreement with Saudi Arabia that includes normalization of relations with Israel. And while some of the reported conditions of the deal would challenge Prime Minister Benjamin Netanyahu and his current cabinet, the deal itself would be an historic breakthrough in the Middle East and is well worth pursuing.

US President Joe Biden hinted at progress on the deal on Friday, as reported by Reuters. “There’s a rapprochement, maybe, underway,” Biden said tersely, declining to elaborate.

Biden addressed the issue during his visit to Israel and Saudi Arabia last year, and White House officials have reportedly been discussing a major upgrade in security ties with Riyadh, as well as significant Israeli concessions to the Palestinians aimed at keeping alive prospects for a two-state solution to the Israeli-Palestinian conflict.

Indeed, there are signs on the ground of earnest efforts to strike a deal. US National Security Advisor Jake Sullivan, accompanied by White House Middle East czar Brett McGurk and Amos Hochstein, Biden’s senior adviser for energy and infrastructure, traveled to Saudi Arabia last week to meet with Crown Prince Mohammed bin Salman and other top Saudi officials and “discuss bilateral and regional matters, including initiatives to advance a common vision for a more peaceful, secure, prosperous, and stable Middle East region interconnected with the world,” the White House said.

The US is considering the Israeli-Saudi normalization deal

The New York Times reported that Biden had not yet made up his mind on an Israeli-Saudi normalization deal, but he had dispatched Sullivan to discuss the terms. The paper reported that during a previous visit by Sullivan in May, the Saudi Crown Prince had expressed willingness to reach a deal on normalization with Israel, prompting Biden to launch what the paper termed a “full-bore effort.”

Saudi Crown Prince Mohammed bin Salman performs morning prayer as he arrives to wash the Holy Kabaa on behalf of Saudi King Salman bin Abdulaziz, in the Grand Mosque in the Holy City of Mecca, Saudi Arabia, August 16 2022. (credit: BANDAR ALGALOUD/REUTERS)

According to Times columnist Thomas Friedman, who is considered close to Biden, among the elements involved in a Saudi-Israeli deal are an official Israeli promise not to annex the West Bank; Israeli commitments not to establish any more settlements, expand the boundaries of existing ones, or legalize illegal outposts; and the transfer of some Palestinian-populated territory in Area C of the West Bank to Palestinian Authority control.

According to Friedman, Riyadh is seeking a NATO-like mutual security treaty that would obligate the US to come to its defense if the kingdom is attacked; a civilian nuclear program monitored and backed by the US; and the ability to purchase more advanced weaponry from Washington such as missile defense systems that could be used by the Saudis to counter Iran’s missile arsenal.

In exchange, the US wants the Saudis to offer a large aid package to Palestinian institutions in the West Bank, significantly roll back their growing relationship with China, and help bring an end to the civil war in Yemen, according to Friedman, who stressed that such a deal could take months to negotiate and is still “a long shot, at best.”

On the domestic Israeli front, Friedman speculated that Netanyahu could be forced to abandon the far-right members in his cabinet who would oppose these terms and instead align himself with centrist political forces in the opposition. 

Netanyahu, for his part, has come out strongly in favor of normalization with Saudi Arabia, calling it one of the top priorities of his government. In an interview with Sky News in early June, for example, Netanyahu called a Saudi-Israeli deal “a quantum leap forward” that would change history. 

Describing Saudi Arabia as the most influential country both in the Arab and Muslim worlds, Netanyahu said, “It would fashion, I think, the possibility of ending the Arab-Israeli conflict. And I think that would also help us solve the Palestinian-Israeli conflict.”

Pursuing a deal with Saudi Arabia would allow the prime minister to focus on his stated policy agenda and his pledge to expand the Abraham Accords, rather than being bogged down by the debate over his government’s contentious judicial reform. 

While Israel’s decision makers would need to seriously weigh the implications of any potential concessions, if normalization with Saudi Arabia means putting the controversial judicial reform on the back burner due to political and diplomatic constraints, that may be a price well worth paying.

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Gasoline prices are spiking. That’s a problem for Powell and the Fed - CNN

New York CNN Business  — 

Prices at the gas pump are suddenly surging, causing headaches for consumers and central bankers alike.

The two-day jump in gasoline prices — the biggest in a year — is combining with a rally in wheat and other agricultural commodities. A lasting spike in food and fuel prices would unravel progress on the inflation front, potentially forcing the Federal Reserve to continue raising interest rates.

The national average price for a gallon of regular gasoline climbed to a three-month high of $3.69 on Wednesday, according to AAA. That’s up by 5 cents from Tuesday, marking the biggest one-day increase since June 2022. And this comes just a day after a 4-cent increase, previously the biggest one-day increase in a year.

All told, gas prices have spiked 9 cents in 48 hours. Drivers haven’t encountered anything like that since last June.

“We’re seeing a sudden jolt,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Analysts blame a combination of mounting supply cuts by OPEC and Russia, extreme heat that has sidelined oil refineries and optimism about the health of the world economy.

Of course, pump prices are still well below where they were last summer. The national average was 64 cents higher a year ago and $1.33 higher at the peak in June 2022.

Commodity spike would ‘unnerve’ Fed officials

Still, higher food and energy prices could stop the inflation cooldown, or even reverse it. Lower gas prices have been central to progress on slowing price increases. And that progress has raised hopes that Fed Chair Jerome Powell and his colleagues could soon halt their war on inflation.

“Higher commodity prices could mean higher rates,” said Francisco Blanch, a commodities and derivatives strategist at Bank of America, in a note to clients on Wednesday. “A spike in commodity prices could reignite a run up in interest rates and restart the battle between oil and money.”

The Fed is widely expected to hike interest rates on Wednesday for the 11th time since March 2022, lifting key rates to the highest level in 22 years. But investors are betting this will likely be the final rate hike.

“If we’re going to have a one and done, we’re going to have to see inflation to cool. And that’s contingent on commodity prices,” said Joe Brusuelas, chief economist at RSM.

Brusuelas said rising food and fuel prices would be problematic.

“That could really unnerve policymakers,” he said.

War in Ukraine lifting grain prices

Just as oil prices have jumped to three-month highs, prices for agricultural commodities are on the rise after Russia terminated a crucial deal that allowed the export of Ukrainian grain and launched strikes on key port and agricultural facilities. Wheat futures have climbed to five-month highs this week.

The IMF warned on Tuesday that grain prices could rise by 10% to 15% because of the collapse of the grain deal.

“Ukraine is one of the breadbaskets of the planet,” said Robert Yawger, vice president of energy futures at Mizuho Securities.

Yawger noted that soybean futures have also climbed sharply amid concerns about high heat hurting crops in the United States.

Hurricanes and heat waves

The inflation situation is, to some extent, at the mercy of Mother Nature.

High heat has derailed operations at some major US refineries, according to analysts, limiting their production of gasoline, jet fuel and diesel at a time of high demand. That’s a concern because gasoline inventories are especially low for this time of the year.

ExxonMobil told CNN on Tuesday that one unit at its Baton Rouge refinery is undergoing maintenance.

“We’re working to complete the maintenance as quickly as possible and continue to meet customer contractual commitments,” an ExxonMobil spokesperson said.

De Haan said that even a 20-minute power outage at a refinery can delay supplies for days.

“Refineries are exposed to the elements. Just like humans, they don’t thrive in 115 degrees,” De Haan said.

Beyond high heat, hurricane season looms. De Haan warned that a major hurricane that strikes the US Gulf Coast could lift gas prices to $4 or even $4.25 a gallon.

“It’s a question of what Mother Nature will throw at us,” he said.

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White House watching rising gas prices ‘very carefully’ - CNN

CNN  — 

The White House is watching rising gas prices “very carefully,” as President Joe Biden’s top advisers are briefing him regularly on the situation, a senior administration official told CNN.

At present, top advisers to Biden believe the situation is steady, the official said, considering it’s the height of air conditioning and driving season and given the strength of the economy, which drives up demand for travel and energy usage.

“The irony is the strength of the economy brings higher prices,” the official told CNN. “The better the president (and his agenda) performs, the higher the price is going to go.”

The average price of retail gasoline nationally rose two cents per gallon Friday to $3.73, according to AAA, after seeing the biggest one-day spike since June 2022 earlier in the week. The national average price for a gallon of regular gasoline climbed to $3.69 on Wednesday, according to AAA, up by 5 cents from Tuesday. That jump came just a day after a 4-cent increase, previously the biggest one-day increase in a year. All told, gas prices have spiked 15 cents in a week.

Analysts blame a combination of mounting supply cuts by OPEC and Russia, extreme heat that has sidelined oil refineries and optimism about the health of the world economy.

Gas prices are still well below where they were last summer – the national average was 54 cents higher a year ago, according to AAA.

If prices rise to a level where the president deems a policy response necessary, the administration may choose to stop buying oil from the open market to refill the country’s emergency reserves or seek higher output from the largest global oil producers like Saudi Arabia and Russia.

It remains unclear what price level would trigger such a response.

Within the West Wing, the monthslong reprieve in gas prices has taken the issue off the front-burner for officials, but it’s now rising in priority.

During the run-up to peak gas prices around $5 per gallon in June 2022, chief of staff Ron Klain refreshed gas prices multiple times per day, and frequently relayed those prices to the public and the president, whose approval rating was seen as directly linked to the price per gallon.

Klain’s successor, Jeff Zients, has been holding regular meetings on the topic but has not obsessed over prices in the same way. Top policy aides like Amos Hochstein – who recently transitioned to the White House from the State Department to advise the president on energy, relations with the Middle East and global infrastructure – have also taken a lead role in crafting the administration’s policy response.

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Gasoline The Price Rally That Nobody Saw Coming - OilPrice.com

Charles Kennedy

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By Charles Kennedy - Jul 28, 2023, 7:00 PM CDT

• Gasoline prices have gained around 20% year-to-date.
• This week, gasoline topped $2.90 per gallon and may yet reach $3.
• In the United States, gasoline inventories are lower than the five-year average both because of the gap between demand and production rates but also because of unplanned refinery outages.

The direction of oil prices is top news material. Everyone follows oil prices. Many also follow the prices of the most traded oil derivatives, and some may have noticed something rather alarming in the trend of one of these derivatives.

Gasoline, one of the six most traded petroleum contracts on the global futures market, has gained over 20% in the year to date, according to a recent Bloomberg report. This is more than what crude oil has gained—a lot more.

At the start of this year, Brent crude was trading around $78 per barrel. This week, the international benchmark, which now also includes a U.S. crude grade, touched $83 per barrel.

Gasoline, meanwhile, started the year at less than $2.50 per gallon. This week, gasoline topped $2.90 per gallon and may yet reach $3.

This is a cause for worry for governments around the world because gasoline, along with diesel, plays a lead role when it comes to inflation. When the price of fuels rises, the prices of everything else rises, too, because everything else is being moved from one place to another—from producer to consumer—on vehicles using either diesel or gasoline.

Yet while diesel is a lot more common for goods transportation, gasoline is a lot more popular among regular drivers. Gasoline demand is a closely watched economic indicator that analysts use to gain insight into the state of the economy, among many others.

Right now, the data suggests that gasoline demand is quite healthy, which could be cause for optimism about the global economy were it not for the fact that supply is falling short of expectations. This is fueling concern about more inflation pain despite the efforts of central banks in Europe and North America to tame it with a series of rate hikes. Related: Pakistan Secures Aramco Partnership Deal for $10B Refinery

In the United States, the Federal Reserve announced yet another hike of 25 percentage points for the benchmark interest rate this week. In the same week, gasoline prices moved higher, with the national average adding 4% in a single day. According to the EIA, gasoline stocks are some 7% below the five-year average for this time of the year. And oil drillers are not drilling more. They are drilling less.

In Europe, governments had to step in last year and subsidize fuels amid the energy crunch and the following embargo on Russian crude and fuels. The move drew a lot of criticism from transition advocates who argued the EU is essentially selling out to the oil and gas industry by encouraging the use of its products.

Yet those governments that implemented the subsidies knew very well what they were doing: they were avoiding riots by millions of drivers whose living standard depends quite a lot on affordable fuels.

Meanwhile, the European Central Bank just hiked interest rates to the highest in more than two decades. And gasoline is not going down anytime soon. Because there is simply not enough supply, at least not everywhere.

In the United States, gasoline inventories are lower than the five-year average both because of the gap between demand and production rates but also because of unplanned refinery outages, Bloomberg noted in its report, such as the one at Exxon’s Baton Rouge facility from earlier this week.

Media reported that a gasoline production unit was down at the Baton Rouge refinery earlier this week. The reports noted that the unit, a catalytic converter, could be down for several weeks. Needless to say, gasoline prices jumped lively at the news.

In Europe, refining and gasoline production has been disrupted by protests in France and then, last month, Shell’s Pernis refinery in the Netherlands shut down a unit due to a leak.

That and the shutdown of refineries in the past few years on both sides of the Atlantic have combined to create a tight supply picture even as governments consider bans for gasoline-powered cars.

While they consider these bans and even vote on them, consumption is on the increase. Bloomberg reports that gasoline consumption in France, Germany, Spain, and Italy is on the rise. At the same time, because of the embargo on Russian fuels, feedstocks needed to produce gasoline are in short supply on the continent.

Meanwhile, Chinese refiners are producing millions of barrels of gasoline and diesel. They are, in fact, producing so much that there were recently pressuring refining margins for the whole region. But most of the gasoline and diesel that Chinese refiners produce gets consumed locally. Because although it’s the world’s biggest EV market, China is also a giant non-EV market. And fuel demand is on the rise.

The picture that gasoline supply and demand trends paint is one of prolonged tight supply and high prices. This, in turn, will likely keep inflation untamed despite the best efforts of central banks—efforts, which also unfortunately make life more expensive. The silver lining: inflation leads to lower consumption of everything. The risk is slipping into a recession.

By Charles Kennedy for Oilprice.com

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Verizon Stock: More Price Hikes Coming - EBITDA Margins Remain Fat - Seeking Alpha

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The Telecom Investment Thesis Remains Robust - Thanks To VZ's Price Hikes

We previously covered Verizon Communications Inc. (NYSE:VZ) in early July 2023, discussing the impact of the Amazon (AMZN) rumors and Wall Street Journal's lead-lined cable expose, triggering the drastic plunge of its stock prices to 2010 lows.

With market analysts expecting the rectification work to total nearly $60B, the telecom faced great uncertainties, especially worsened by its immense debts.

Then again, we believed that the steep correction presented great opportunities then, allowing income investors to DCA and take advantage of VZ's expanded forward yields.

Recently, VZ reported underwhelming FQ2'23 revenues of $32.6B (-1% QoQ/ -3.4% YoY), well balanced by the expanding gross margins of 60.8% (+1.8 points QoQ/ +3.5 YoY). This is compared to its FY2019 levels of 58.5% and FY2022 levels of 56.8%, thanks to the higher premium mix.

The improvement is a similar cadence we have observed with its telecom peers, such as AT&T (T) at 59.1% (+2.4 QoQ/ +2 YoY) and T-Mobile (TMUS) at 62.1% (+3.2 points QoQ/ +3.4 YoY) in FQ1'23. In addition, VZ is looking to further raise the monthly wireless home internet prices by $10 for new customers and grandfathered mobile plans by up to $5 in H2'23.

Interestingly, despite the hiked prices since 2022, VZ's consolidated postpaid phone churn in the Mobility segment has been moderate at 0.83% (-0.07 point QoQ/ +0.02 YoY) in the latest quarter, against the FY2019 averages of 1.09%. Its total net adds are still decent at +8K in FQ2'23 as well, compared to -127K in FQ1'23 and +12K in FQ2'22.

The star of the show is naturally the telecom's Broadband segment, with net additions remaining stellar at 418K (-4.3% QoQ/ +55.9% YoY), contributing to its expanded consumer wireless postpaid ARPA of $131.83 (+1.3% QoQ/ +6.1% YoY), thanks to the raised prices.

With the Consumer segment commanding the bulk of VZ's adj EBITDA at an annualized sum of $42.4B (+2.9% QoQ/ +1.9% YoY) or the equivalent of 88.3% (+1.8 points QoQ/ +1 YoY) of its FQ2'23 profitability, we think it makes sense that the management has opted for hiking prices to help boost its margins to 43.1% (+1.6 points QoQ/ +2.6 YoY).

Then again, this development is negated by the telecom's accelerating operating expenses of $12.61B (+6.7% QoQ/ +8.7% YoY), thanks to the increased marketing costs (by +10.1% QoQ/+13.3% YoY) related to myPlan. This naturally impacts its margins to 22.1% (-1 points QoQ/ -0.9 YoY) in the latest quarter.

Perhaps this is why the VZ management has guided FY2023 adj EBITDA of $47.75B (inline YoY), implying margins of 35.3% (inline YoY), despite the wireless service revenue growth of 3.5% YoY at the midpoint.

Combined with the elevated interest rate environment, triggering the expansion in its annualized interest expenses to $5.12B (+6.6% QoQ/ +63.6% YoY), it is unsurprising that the management's FY2023 adj EPS guidance is underwhelming at $4.7 at the midpoint (-9.2% YoY).

Then again, there is a silver lining for now, since VZ reports expanding H1'23 Free Cash Flow generation of $8B (+11.1% YoY), thanks to the moderating capital expenditure of $10.1B (-3.7% YoY).

Assuming a similar cadence in H2'23, we may see the telecom record improved FY2023 FCF of $16B (+13.8% YoY), partly attributed to its moderating capital spending of $18.75B (-18.7% YoY) at the midpoint.

While the number is not as impressive as VZ's previous outlook of $21B (+49.4% YoY) in the Analyst Day, we are encouraged by these decent developments, since it suggests the safety of its dividend, with cash flow at approximately $10.96B for the fiscal year.

In addition, the Fed is bound to pivot sooner than later in our view, with the US CPI sustainably moderating to 3% by June 2023, compared to 9% a year ago. Market analysts already priced in a terminal target rate of 5.5%, implying one last rate hike in 2023.

Assuming so, we may see VZ's headwinds moderate from henceforth, since 27% of its debt portfolio is exposed to the variable interest rates. This cadence may allow its effective interest rate to peak at FQ1'23 levels of 4.6% (+0.9 points QoQ/ +1.2 YoY), while also normalizing its full year adj EPS by up to +$0.30 in FY2024.

In addition, things may accelerate by H2'23, with the management guiding for expanded ARPA from the newly launched myPlan in May 2023, potentially boosting its long-term margins as the macro headwinds abate.

So, Is VZ Stock A Buy, Sell, or Hold?

VZ 5Y EV/Revenue and EV/ EBITDA Valuations

S&P Capital IQ

For now, VZ continues to trade attractively at NTM EV/ EBITDA of 6.61x as well, moderated from its 1Y mean of 7.10x and 3Y mean of 7.07x. This is despite market analysts' projecting a stable EBITDA margin through FY2025.

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Largely due to the stock's oversold status, VZ has also risen moderately, reversing part of its steep losses thus far. For now, it appears that market sentiments have somewhat recovered, especially aided by its promising FQ2'23 performance and iterated FY2023 profitability.

As a result, we believe existing investors may be rest assured about the VZ investment thesis, since their incomes remain safe despite the stock's underwhelming performance against the SPY.

This led us to iterate our Buy rating on the VZ stock after earnings.

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DA Pamela Price and Oakland city leaders blasted by NAACP - New York Post

The Oakland, California, NAACP civil rights organization blasted woke city leaders for their soft-on-crime policies which they say have led to skyrocketing numbers of shootouts and violent armed robberies, forcing residents to leave the area for good.

The group issued the statement Thursday as dozens of Oakland residents packed a public safety meeting and demanded progressive Alameda County DA Pamela Price to address the alarming uptick of violent crime in the city.

In the letter, the local NAACP chapter said residents are “sick and tired” of the shootings, car-break-ins and highway shootouts and implored city leaders to declare a state of emergency.

“There is nothing compassionate or progressive about allowing criminal behavior to fester and rob Oakland residents of their basic rights to public safety,” the group wrote.

“It is not racist or unkind to want to be safe from crime. No one should live in fear in our city.”

Oakland police investigate the scene after shooting an armed carjacking suspect on International Boulevard and 105th Avenue in East Oakland, Calif., on Feb. 17, 2023.

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The group, along with Bishop Bob Jackson of the Acts Full Gospel Church, said Price’s unwillingness to charge and prosecute serious criminals, as reported by The Post, has created “the proliferation of anti-police rhetoric and created a heyday for Oakland criminals.”

The city’s 911 system also is failing its residents, while criminals know police response is usually slow since the city is suffering from a shortage of 500 officers, Oakland NAACP officials said in the letter.

As of July 16, robberies in Oakland have increased by 22% with 1,880 reports, according to the San Francisco Chronicle. Crime overall was up 15% citywide and up 42% in total since the first half of 2021.

Oakland police investigate a double shooting near the Fruitvale BART station in Oakland, Calif., on April 2, 2023.

MediaNews Group via Getty Images

Oakland NAACP President Cynthia Adams

Cynthia Adams/Facebook

Bishop Bob Jackson, of Acts Full Gospel Church, leads a prayer during an International Day of Prayer and Awareness Against Human Trafficking vigil at St. Anthony’s Catholic Church in Oakland, Calif., on Feb.7, 2023. Jackson, along with Oakland NAACP, penned the letter asking city leaders to declare a state of emergency.

MediaNews Group via Getty Images

Jackson and the NAACP said no one is safe when it comes to becoming targets of criminals who have taken over Oaklands’ streets because of the lack of leadership and prosecution.

“African Americans are disproportionately hit the hardest by crime in East Oakland and other parts of the city,” the group said. “But residents from all parts of the city report that they do not feel safe. Women are targeted by young mobs and viciously beaten and robbed in downtown and uptown neighborhoods.

“Asians are assaulted in Chinatown. Street vendors are robbed in Fruitvale. News crews have their cameras stolen while they report on crime. PG&E workers are robbed and now require private security when they are out working. Everyone is in danger.”

Vehicles head back and forth across the Bay Bridge during the afternoon commute in Oakland, Calif., on June 26, 2023.

MediaNews Group via Getty Images

Oakland Police investigate a shooting on Brookdale Avenue and Foothill Boulevard in Oakland, Calif., on April 27, 2023.

MediaNews Group via Getty Images

Price has received criticism for her progressive policies and declining to seek harsher punishment against violent offenders. In March, the prosecutor declined to add gun and gang enhancements against three gangbangers charged with shooting a 5-year old girl.

Price announced in June she would not be prosecuting nine teens arrested for a string of robberies in the East Bay.

Price cited “lack of evidence” for not moving forward with charges against the teens, and added, “Many of the details of these incidents being spread by some individuals have been hyperbolic.”

Facebook photos of Alameda County DA Pamela Price

Pamela Price / Facebook

Hundreds of frustrated Oakland residents packed a public safety meeting Thursday and voiced their concerns to Price and Oakland Police Capt. Clay Burch, according to local station KTVU.

“While I’m driving, I’m pulled out of my car at gunpoint,” one woman said. “What are we doing to address this? How do we solve this? Nobody feels safe.”

At the Thursday public meeting, Price doubled down on her decision not to prosecute the nine teens for the robberies. She said a veteran deputy in her office determined there was lack of evidence because the victims were unable to identify their attackers.

Oakland resident Barbara Hoffer, who also was at the meeting, said she was assaulted during an attempted robbery along with her friend.

“Pamela Price needs to understand that there must be consequences when there are assaults on people in their city,” Hoffer said.

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