BUSINESS

Five weeks ago, Paramount Skydance (PSKY) was willing to sell CNN to end this fight.

Chief Legal Officer Makan Delrahim said in August that a sale of the network was on the table as the company tried to clear the state antitrust suit blocking its takeover of Warner Bros. Discovery (WBD).

The terms under discussion are now much cheaper. Reuters reported Friday that independent content monitoring of CNN and a commitment on the number of theatrical releases are among the items being negotiated, citing people familiar with the matter. Nobody is selling anything.

Related: Paramount threatens key market exit over $110 billion mega deal

The price of peace just got cheaper

That shift is the actual story, and most coverage buried it under the stock pop.

California Attorney General Rob Bonta has said repeatedly that structural remedies, meaning divestitures, protect competition better than promises to behave. Monitoring and release quotas are promises to behave.

The Wall Street Journal reported Friday that the sides also discussed operating the studios separately for a period rather than merging them immediately. That is a delay, not a divestiture. On these terms, Paramount keeps the company whole.

A Paramount spokesperson declined to comment. The California Department of Justice said the talks are confidential, Reuters reported.

How a September close became a March trial date

The calendar explains why Paramount’s posture softened the state’s position, rather than the other way around.

Paramount agreed on Feb. 27 to buy WBD for $31.00 a share in cash, valuing it at $81 billion in equity and $110 billion including debt, according to Paramount. The Justice Department cleared it in June. Twelve states sued in July, and a court stipulation pushed the outside closing date to June 2027.

Then the meter started. The merger agreement adds “ticking consideration” for every day past Sept. 30:

Paramount owes Warner Bros. shareholders $7 million a day until the deal closes, according to CNBC. That is roughly $650 million a quarter.

The fee accrues at $0.00277778 per share daily, capped at $0.25 per 90-day period, per WBD’s proxy filing.

A March 2027 trial of the states’ lawsuit would mean possibly $1.3 billion in fees before a verdict, in addition to financing and legal costs.

Paramount has asked the states to post a $1.88 billion bond, with a hearing set for Sept. 24, Variety reported.

What the stocks said after the bell

Paramount Skydance closed Friday at $10.21, down about 3.9% on the session, then rose 7.6% after hours on the settlement reports, according to Seeking Alpha. Warner Bros. Discovery gained 8.3%.

WBD is no longer a media stock in any useful sense. It is a merger-arbitrage position: the share price tracks the odds of a $31 cash payout, not HBO Max subscriber growth. It closed Friday roughly 10% below that price, and Friday night’s move erased most of the gap.

The more revealing move was Paramount’s. Acquirers usually fall when a contested deal firms up, because certainty means paying.

Paramount rose because the delay now costs more than the concession does.

Paramount owes Warner Bros. shareholders $7 million a day, or roughly $650 million a quarter, for every day the deal stays unclosed past Sept. 30.SOPA Images / Getty Images

Analysts still refuse to price a clean close

While after-hours traders rushed to price in a resolution, Wall Street has not caught up to the market. Nineteen analysts polled by S&P Global rate WBD a consensus Hold with an average 12-month target of $29.82, according to StockAnalysis.

That number is the tell. In an all-cash deal, a target below the contracted $31 is not a valuation call. It is a discount for the chance that the deal dies.

The spread between desks shows how wide the disagreement runs. UBS carries a $31 target while Bank of America sits at $24, according to Yahoo Finance. Barclays reinstated coverage at Equal Weight on Sept. 16, and Bernstein reaffirmed its Hold a day earlier.

For investors, the practical read is blunt. Upside is capped near $31 plus accrued fees, while the downside if talks collapse is the unaffected price the deal replaced.

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State attorneys general are the new last hurdle

Paramount cleared the DOJ, the FCC and regulators in more than 65 countries. One state coalition still froze a $110 billion transaction for two months and extracted concessions from it.

A settlement could come as soon as this weekend, according to CNBC. That would end the state case, but not every obstacle.

The Writers Guild of America is suing separately over pay and working conditions, and a union spokesperson did not say whether it is part of the current talks, according to CNBC.

The precedent is what lasts. Federal clearance used to be the finish line for a megadeal. The next contested merger in media or tech will now budget for a second fight in state court, and for the ticking fee that makes losing it expensive.

Related: Paramount just offered up its crown jewel

Amazon employs hundreds of thousands of people in warehouses and delivery operations across the United States. On September 16, it told them their pay is going up.

The company announced a $1-per-hour raise for eligible U.S. core operations employees, bringing the minimum starting wage for full-time roles to $20 an hour, according to Amazon’s press release. Average hourly pay for core operations workers rises to nearly $24. With benefits factored in, average total compensation exceeds $32 an hour. Amazon said the minimum starting wage has now risen more than 17% over the past three years.

What the $1.5 billion investment actually covers

Amazon said the pay increases will cost more than $1.5 billion. The investment covers workers involved in fulfilling and delivering customer orders, including fulfillment-center workers and delivery drivers. Amazon did not describe it as a companywide raise for every employee.

Udit Madan, Amazon’s senior vice president of Worldwide Operations, said the company evaluates pay and benefits annually. “I often hear that they appreciate a good paycheck, but also really value the full range of benefits that we offer, which together help them support their families and grow in the long run,” he wrote in a blog post announcing the changes.

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For a full-time employee working 40 hours a week year-round, the $1-per-hour increase works out to about $2,080 more annually before taxes. The $1.5 billion figure is a significant outlay in absolute terms and comes to roughly 0.06% of Amazon’s current market capitalization of about $2.68 trillion.

The federal minimum wage is $7.25 and Congress has not raised it since 2009. Amazon’s new $20 floor is nearly triple that. Many states have passed their own higher minimums, some above $15, so Amazon’s starting wage lands above most state floors too. The company says it sets pay by looking at what it takes to fill and keep positions in its busiest markets.

What new benefits Amazon is adding

The pay increase comes alongside a new banking benefit and grocery discounts, both effective October 1, 2026.

Amazon is giving employees access to Day 1 Financial, a lifetime membership in First Tech Federal Credit Union. Qualified employees and their families keep the membership for life. Access begins rolling out in late 2026 and is expected to be broadly available in 2027. The credit union is federally insured by the National Credit Union Administration.

On groceries, Amazon employees will get 10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market online, and 20% off in-store at Whole Foods Market, according to Amazon. The discount is uncapped and can be stacked with existing Prime member discounts.

Amazon already offers full-time employees free Prime membership, prepaid education up to $5,250 annually through its Career Choice program, health-care coverage from day one, a 401(k) with company match and paid parental leave.

Amazon employs hundreds of thousands of people in warehouses and delivery operations across the United States.Bloomberg / Getty Images

How workers are reacting to the news

The reaction among some Amazon workers has been mixed. On a Reddit forum for Amazon employees, several comments questioned whether the Whole Foods grocery discount would amount to meaningful savings in practice, given the chain’s reputation for higher prices than typical grocery stores. One commenter said the 20% discount might bring Whole Foods prices roughly in line with a regular supermarket.

The wage increase shows up in every paycheck. The Whole Foods discount only helps workers who actually shop there. Many Amazon fulfillment-center employees are in suburban and rural areas where Whole Foods locations are sparse. A 20% discount on a grocery chain that runs 30% to 40% above average market prices still leaves workers paying more than they would at a standard supermarket.

Yahoo Finance reported the Reddit comments were highlighted by Amazon itself in materials it shared with media, framing the employee skepticism as good-natured.

The banking benefit drew a more positive response. Access to a federally insured credit union with lifetime membership is a tangible financial tool, particularly for workers who are unbanked or underbanked. About 4.2% of U.S. households have no bank account, according to the FDIC, and a larger share use high-fee check-cashing or payday lending services. A credit union membership with low fees and competitive rates addresses a real gap for that group.

What this means for Amazon and its workforce

Hourly workers have more options than they did five years ago. Walmart’s average U.S. frontline associate wage now tops $18 an hour, according to Walmart. Target, Costco and other large retailers have done the same. Amazon warehouse jobs have a reputation for fast pace and physical demand, so the pay premium has to justify that to workers who could go elsewhere.

The company has also faced years of criticism over warehouse working conditions, injury rates and worker organizing efforts. Higher pay addresses one dimension of employee concerns but does not resolve questions about workload, pace of work or scheduling flexibility that have driven some of the tension between Amazon and its workers.

For investors, the $1.5 billion figure is worth context. Amazon generated more than $100 billion in operating cash flow in its most recent fiscal year, according to Yahoo Finance. The wage investment is meaningful for the workers receiving it, but manageable at the company’s scale.

Labor costs are one of the largest line items in Amazon’s operations. The company has been investing heavily in robotics and automation across its fulfillment network, partly to offset rising labor expenses over time. Higher wages make the automation investment look more attractive from a cost standpoint, since it raises the threshold at which machines become cheaper than people. Amazon will report how labor costs are trending when it releases its next quarterly earnings results.

Related: Kroger has a problem Walmart and Amazon will never have

The Center for Retirement Research at Boston College reported that roughly one in four retirees still claim Social Security at 62. 

Many typically leave traditional Individual Retirement Accounts (IRAs) untouched until age 73 (75 for those born in 1960 or later) –– the age at which the IRS mandates annual withdrawals, called required minimum distributions (RMDs) –– reflecting a cautious default sequence.

That’s where the blind spot lies. Waiting can create a tax burden that follows the household throughout retirement.

Once required withdrawals begin, several sources of taxable income can pile up in the same years, increasing the amount of retirement income that gets taxed.

The years between the last paycheck and the first required withdrawal can therefore be especially valuable. Yet many retirees miss the opportunity to use those years to manage their taxes, and that window gets smaller with each passing year.

How an untouched IRA pushes Social Security into taxable territory

Tax-deferred growth inside a traditional IRA compounds for a decade or longer after retirement, producing a balance at 73 larger than most households anticipate. 

Every dollar the IRS forces out as a required minimum distribution counts as ordinary income, directly raising adjusted gross income (AGI). 

That higher AGI changes how much of a retiree’s Social Security becomes taxable, Mercer Advisors senior wealth adviser Jack McCloskey explained.

Ed Slott, certified public accountant, founder of Ed Slott and Company, and Professor of Practice at the American College of Financial Services, told Morningstar that voluntary distributions during low-income years lower the lifetime tax bill.

I always say the way to always pay the lowest tax over your lifetime is my ‘always’ rule. Always pay taxes at the lowest rates, even if it means paying taxes when they’re not required, like taking more than the RMD

Up to 85% of Social Security benefits become taxable for joint filers whose combined income crosses $44,000, the IRS stated.

The same inflated AGI also pushes households into higher marginal brackets, adding a second cost layer to each oversized IRA distribution.

The One Big Beautiful Bill Act’s $6,000 senior bonus deduction lowers tax owed on benefits through 2028 but leaves the underlying provisional-income thresholds untouched, according to the IRS.

Why the compounding trap also raises Medicare premiums

Medicare’s income-related monthly adjustment amount (IRMAA) adds a cliff-style surcharge tied to modified adjusted gross income (MAGI) from two years earlier. 

Joint filers who cross $218,000 in MAGI see their Part B premium rise from $202.90 to $284.10 per person monthly, the Centers for Medicare and Medicaid Services (CMS) confirmed in its November 14, 2025, fact sheet on 2026 Medicare Parts A and B premiums.

Higher tiers push that monthly figure to $689.90, and Part D surcharges climb from $14.50 to $91.00 on top of the base cost.

One dollar above a threshold triggers the full penalty for a calendar year because IRMAA operates on hard cliffs. A large distribution taken in 2024 only appears as higher Medicare bills in 2026, long after the retiree can adjust the underlying income.

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RMD percentages increase with age under IRS distribution tables, so the surcharge pressure builds, the IRS showed. 

Each annual cost-of-living adjustment to Social Security pushes more income past the surcharge cliffs, creating a cycle that accelerates deeper into retirement.

First-tier IRMAA surcharges on Part B and Part D combined add roughly $2,300 per year for a couple where both spouses are on Medicare, based on the CMS 2026 fact sheet.

IRMAA surcharges can compound retirement costs as income crosses Medicare thresholds, increasing premiums and creating larger bills later in retirement.Xavier Lorenzo / Getty Images

Reversing the sequence fills the 12% bracket and locks in a larger benefit

The 2026 standard deduction for married joint filers is $32,200, and the 12% bracket runs to $100,800 of taxable income, the IRS noted. Spending from the IRA during the bridge years fills that bracket at the lowest available rate, shrinking the balance before RMDs begin.

McCloskey also said that Roth conversions during the same period achieve a similar result by moving pretax dollars into a tax-free account at the current lower rate. 

Either approach reduces the IRA balance the IRS uses to calculate required distributions at 73.

Delaying Social Security while spending down the IRA captures a gain, because benefits grow 8% for each year past full retirement age, according to the SSA. 

Every future cost-of-living adjustment (COLA) is applied to that larger base, so even a modest annual increase delivers more dollars in absolute terms.

The higher earner’s claiming age also sets the survivor benefit, protecting whichever spouse lives longer and faces narrower brackets alone. 

Economist Sita Slavov of George Mason University and the TIAA Institute found that widows faced a smaller financial shock when husbands delayed claiming.

That finding matters because surviving spouses file as single, where the 22% bracket begins at just $50,400, the IRS stated.

How retirees approaching the bridge years can measure the gap

Retirees nearing the period between their final paycheck and their first mandatory distribution can create a timeline showing when Social Security, IRA withdrawals, pensions, and other income sources begin.

This can reveal low-income years suitable for Roth conversions or early IRA withdrawals, McCloskey wrote in the Mercer Advisors article.

The gap between projected income and the bracket ceiling indicates how much room there is for IRA withdrawals or Roth conversions each year, Slott told Morningstar, and unused low-bracket space resets at the end of the calendar year.

Slott noted that once required distributions begin, the window for controlling the tax rate on those dollars has closed, since RMDs cannot be reduced by voluntary planning after the fact.

Related: Schwab warns of a retirement risk easy to overlook

Consumers in the United States often view convenience stores as essential, fast-service stops for drinks, snacks and fuel. Moreover, the latest industry data shows that these stores are becoming direct competition to fast-food chains, offering fresh meals and premium coffee. 

However, at the same time their skepticism around fresh food safety at these stores is growing. In fact, 79% of Americans worry about food contamination at convenience stores, according to 2025 research from Logile, a workforce management solutions provider. 

Despite the skepticism, food service and merchandise sales for the U.S. convenience retail industry reached $341.2 billion in 2025, a 1.7% increase over 2024, according to data from the National Association of Convenience Stores (NACS). This was the 23rd straight year that inside sales have increased. 

Nonetheless, maintaining individual stores is becoming tougher as foot traffic drops across physical locations. In 2025, the average convenience store had 45,160 transactions per month, a 2.7% decrease from 2024. 

As store visits soften, smaller operators face a choice between making costly store renovations to build fresh-food kitchens or selling their footprint to larger national competitors.

Tooley Oil quits convenience retail business, sells all locations 

Sacramento-based Tooley Oil Company is officially exiting the convenience store and car wash business after nearly 50 years of operations. 

The family-owned operator sold its 12 convenience stores, primarily operating under the proprietary Mixx Market banner, and seven CleanMixx car washes to an undisclosed buyer, as reported by NACS Daily.

Matrix Capital Markets Group, an advisory-focused investment bank, has advised Tooley Oil Company on the sale of its petroleum marketing and convenience retail business to a confidential buyer.  

Founded in 1978 by Michael “Mick” C. Tooley, the company grew into a regional staple before partnering with Shell for fuel distribution and eventually launching its own Mixx Market store concept in 2024. 

Over the years, the company made significant investments to upgrade several of its car washes and unified its car wash program under a proprietary “CleanMixx” brand.  

Tooley Oil will continue to run its wholesale operations 

Despite selling its retail division, Tooley Oil is retaining its wholesale motor fuels distribution business and plans to use the proceeds from the deal to drive further growth in wholesale operations. 

“After nearly 50 years of our family being in the retail business, this is certainly a bittersweet moment for us… While this closes an important chapter for our family, we’re excited about what’s ahead for Tooley Oil and the continued growth of our wholesale operations,” company president Mick Tooley stated. 

Matrix Capital Markets, which advised on the deal, said the Tooley family built ‘a very successful business’ in the Sacramento market.

“We’ve known Mike and David for many years and are honored to have been able to advise them on the successful sale of their convenience retail business. We look forward to seeing them continue to grow their wholesale business,” said Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group. 

Tooley Oil quits convenience retail business, sells all locations.Julia Gomina / Getty Images

Small operators are battling rising wages and credit and debit card fees 

While the company didn’t provide an official reason for the sale and exit from retail, recent industry data point to a few possibilities. As food becomes a major part of sales, smaller operators need to rise to the challenge. 

Meanwhile, expenses to run those kinds of operations are rising. 

“Direct store operating expenses (DSOE)—which include wages and benefits, card fees, utilities, maintenance and merchandise shrink—increased 4.2%, the slowest rate of increase since the COVID pandemic. However, credit and debit card fees continued to climb, hitting a record $21.3 billion,” reveals the NACS April report. 

Retail expert and RTM Nexus CEO Dominick Miserandino agrees that Tooley Oil selling out comes down to simple scale. 

“Running a few gas stations and car washes in California is a nightmare on overhead. Every year, minimum wage goes up, maintenance costs climb, and local permits eat up whatever cash you have left. If you only own a dozen locations, you don’t have the size to negotiate cheaper gas prices or cut deal terms on inventory,” Miserandino told TheStreet. 

“The big chains are swallowing up guys like Tooley because they have the cash to eat those local headaches. They slap in hot food counters, boost the register tickets, and spread overhead across thousands of stores. For a small operator, taking a big check right now beats fighting a losing battle on margins every single month,” the retail expert added. 

Related: Ikea closes another key store after barely a year 

Recent convenience store closures and strategic reorganizations 

Tooley Oil is not alone. A number of convenience stores closed their doors or sold their businesses or made other strategic downsizing efforts in recent years. Some of those include: 

Alimentation Couche-Tard (Circle K): The convenience store giant closed 80 stores in a 12-week span ending in July 2026 (following a prior sale of 36 U.S. Circle K locations) as part of an ongoing portfolio optimization strategy in response to elevated consumer living costs, according to a reporting by TheStreet.

Cumberland Farms / EG America: Parent company EG America is phasing out and rebranding several iconic regional convenience banners, including Tom Thumb, Turkey Hill, Loaf ‘N Jug, and Coen Markets, to consolidate 600 to 700 locations into the unified Cumberland Farms flagship banner over five years, as detailed by TheStreet.

Casey’s General Stores (CEFCO): Following its acquisition of Fikes Wholesale, 7-Eleven rival Casey’s is sunsetting the 73-year-old CEFCO brand name and committing $150 million to convert and rebrand nearly 200 locations to the Casey’s banner, while also divesting 10 locations to exit the Mississippi market, as reported by TheStreet. 

7-Eleven: The global operator is executing a massive fleet restructuring by closing hundreds of underperforming North American locations to reallocate capital toward larger, foodservice-heavy prototypes, as previously covered by TheStreet. 

Wawa: The East Coast favorite shuttered its experimental, digital-only campus store at Drexel University in Philadelphia following a costly tech test, as reported by TheStreet.

Pak-A-Sak: The 48-year-old Texas Panhandle operator opted to exit the retail space entirely by selling its entire 24-store portfolio to Casey’s, according to TheStreet. 

Related: Target rolls out another generous deal to win back customers 

T-Mobile and Verizon have been gaining momentum in attracting new internet customers; however, competition has just intensified with a new rival in the broadband market.  

In recent months, both companies have benefited from a growing trend of consumers switching from traditional internet services offered by cable operators to lower-priced fixed wireless and fiber internet offerings from wireless carriers.

Amid this trend, T-Mobile reportedly added roughly 520,000 broadband customers in the second quarter of 2026, according to data from research and consulting firm Recon Analytics. Verizon gained about 348,000 internet customers during the quarter, its latest earnings report revealed. 

In a May report from RCR Wireless News, Jeff Moore, telecom analyst and principal of Wave7 Research, said the “U.S. broadband duopoly of cable and telcos is fading” as “increased competition from carriers and alternative providers is giving consumers more choices, wider availability, easier setup, and lower prices.” 

Cricket Wireless introduces 5G home internet service

As T-Mobile and Verizon benefit from shifting consumer behavior, Cricket Wireless, which is owned by AT&T, has entered the broadband market by launching 5G home internet service (a fixed wireless internet service). 

Cricket 5G Home Internet officially launched on Sept. 16, according to a new press release. The carrier states that the offering “simplifies connectivity with predictable pricing, no annual contracts, and plan taxes included” in the monthly price. It also runs on AT&T’s network.

The plan is $65 per month, and if new customers bundle it with Cricket Wireless, it is $75 per month. However, existing Cricket Wireless customers can add Cricket 5G Home Internet for $45 per month (with the $5 autopay discount activated). 

Related: T-Mobile adds monthly fee to a new iPhone feature for customers

The plan offers “unlimited data for streaming, gaming, browsing and everyday household connectivity.” It has a typical download speed of 90-300 Mbps, an upload speed of 8-30 Mbps, and a latency of 30-65 milliseconds. 

Also, Cricket Wireless states that no installation appointments are needed, as customers can set up the service themselves in minutes using the myCricket Internet App.

“Customers are looking for fast, reliable internet that’s simple to buy, easy to understand, and backed by a brand they trust,” said Angela Rittgers, president of Cricket Wireless, in the press release. “With Cricket 5G Home Internet, we’re delivering the internet you need at the value you deserve while removing the complexity; it’s just the smarter way to stay connected.”

AT&T’s Cricket Wireless has launched 5G home internet service. RiverNorthPhotography / Getty Images

Cricket Wireless joins a growing push for affordable internet

The move announced by Cricket Wireless comes at a time when the big three carriers, T-Mobile, AT&T and Verizon, have been revamping their internet offerings this year. 

For example, in March, AT&T launched its OneConnect plan, which costs $90 per month and offers customers combined wireless and 1-gig fiber home internet service (with speeds up to 1,000 Mbps).

In May, T-Mobile refreshed its fiber internet offerings with a new Fiber 300 Mbps plan that starts at $45 per month. It also lowered the price of its Fiber 1 Gig plan from $65 per month to $60 per month, and while its Fiber 2Gbps plan remained at $70 per month, a promotion is no longer required to secure that price. 

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Verizon took a similar step as AT&T when it launched its Verizon One plan in June, which offers customers combined mobile and home internet service for $70 per month.

Recently, internet providers have increasingly focused on offering greater value and affordability as consumers become more sensitive to price increases. 

A survey from PCMag in August found that 47% of U.S. consumers saw their monthly internet bills increase over the last 12 months. 

The average estimated price hike was $16.58 per month, reflecting an almost $200 year-over-year increase. In extreme cases, approximately 11% saw price increases exceeding $30 per month.

Amid this trend, 36% said they are unhappy with their internet service and are contemplating switching providers. 

“So few of us have a true choice when it comes to picking an ISP (internet service provider),” said Eric Griffith, a senior editor covering broadband at PCMag, in the survey release. 

“Providers coast on their regional monopolies or duopolies,” he added. “That lack of competition means you’re over a barrel, paying high prices for service that seldom improves in any noticeable way.”

Related: Verizon scales back a perk that keeps prices low for customers

While artificial intelligence (AI) has infiltrated our search results, impacted customer service with mixed results, and touched our lives in lots of minor ways, its impact hasn’t changed most people’s everyday lives.

And while many people fear an AI-driven Terminator-style apocalyptic future, that hasn’t happened quite yet either. In reality, much of the impact of AI remains theoretical, and Apple’s new CEO John Ternus has a clear vision for what that looks like.

“As we look ahead, we see a future filled with enormous discovery and transformation. AI makes entirely new kinds of experiences possible. And AI can become even more useful when it brings together your life with the apps, services, and products you use every day,” he said during Apple’s Sept. 9 event.

Apple, he believes, can be the leader in developing that space because it already has a key product, the iPhone, that’s in you pocket, your hand, and at the center of your everyday life.

“This means the product at the center of your experiences becomes even more essential, what I like to think of as an intelligent personal hub. It’s the intersection of broad new capability and a deep understanding of your personal context that makes this idea so powerful,” Ternus added.

Apple has a massive advantage

Most companies developing AI technology need a way to deliver it to consumers. Apple already controls a massive piece of the device market.

“The headline is blunt: “Apple ended 2025 with 55.9% of the US installed base, up 5.9 points in a single year. Samsung fell 4.9 points to 27.8%,” according to an April Recon Analytics report.

“Apple beats smartphone competitors in terms of brand loyalty, with more than 90% of iPhone users in the U.S. saying that they’ll likely stick with Apple when it’s time to upgrade,” a Statista report showed.

That’s based on a number of factors.

“First, there’s the undisputed quality of Apple devices. Even though they usually carry a premium price, the build quality reflects that premium. Secondly, there’s the brand factor. Apple is one of the most popular and most recognizable brands in the world, and to many users, it would feel like a downgrade to move to a Samsung or Google device,” Statista’s Felix Richter wrote.

It’s a product edge that gives Apple a shortcut to controlling the future of AI.

Apple’s CEO shares a future that’s already here

In describing the “ideal version of this hub,” Ternus basically described the iPhone.

“Now if you were designing the ideal version of this hub from scratch, how would you do it? Well, first, you would want something that is always with you, deeply personal and able to bring intelligence to the moments when it matters most,” he said.

That’s clearly the iPhone, but the CEO got even more specific with the other requirements he lays out.

You require a powerful processor that can run incredibly capable on-device models to quickly answer questions in the moment, and pervasive networking to access knowledge and even more capable models in the cloud.

You need a large, beautiful display to show rich content.

You’d add high-quality cameras and microphones, so we could see and hear and reason over the sights, sounds, and the world around you.

Of course, you’d give it all-day battery life.

You’d want it to be super easy to use without a big learning curve.

Aside from all-day battery life, those are things the iPhone already delivers. Ternus also shared the final reasons why the iPhone already sits at the center of the AI world.

“And finally, you’d want it to work seamlessly with your other devices, apps, and services. So it feels like one integrated experience. In other words, you would arrive at something remarkably familiar because there’s no product in the world better designed to be your intelligent personal hub than iPhone,” he added.

Apple is all about device sales

RTM Nexus CEO Dominick Miserandino thinks that Apple has actually been sticking to the same script it has used for decades.

“Apple doesn’t give a damn about winning a chatbot contest. I’ve been using the Siri beta, and it’s an interesting game changer. It embeds quite nicely right into what you’re already doing on the phone. While Google and OpenAI burn billions on servers trying to build a destination, Apple is doing what it always does: selling hardware,” he told TheStreet.

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He thinks that, no matter what Ternus says, everything the company does is about making sure you stay in the iPhone family.

“They don’t care about selling you a $20 monthly subscription — they’re using AI to give you a reason to ditch your three-year-old iPhone and drop $1,200 on a new one. The math is simple. Apple owns two billion screens, and they’re using this integration to drive the next upgrade cycle,” he added.

Around half of Americans already use an iPhone.Shutterstock

Apple knows everything about you

Ternus explained why a phone is the perfect device to be an AI hub.

“As your personal hub, your iPhone can do so much more for you because it understands your context. This includes your calendar, your relationships, your routines, the most private details of your daily life,” he said.

Other companies and devices, he noted, will have trouble copying that relationship.

“Now others see that data as something to collect and store. They move it to their servers and ask you to trust them. But honestly, trust only goes so far when your data is no longer yours to control,” he added.

Apple’s argument is that the company already has an established trust relationship with consumers. That’s a trust he takes seriously.

“Private Cloud Compute extends that same level of privacy protection, ensuring that nobody, not even Apple, can access what’s yours. It’s personal intelligence that’s actually personal,” he shared.

Apple’s privacy claims around Private Cloud Compute aren’t based solely on a statement from its CEO. The company has made the system available for security research and commissioned independent audits of its PCC provisioning controls.

A 2026 SOC 3 examination found reasonable assurance that those controls operated effectively under the applicable security, processing-integrity and confidentiality criteria, although the audit did not evaluate Apple Intelligence itself, according to Apple’s product support page.

iPhone isn’t the only piece of the puzzle that will help Apple build the future of AI.

“iPhone sits at the center of an amazing ecosystem of intelligent features and experiences that work seamlessly across the products you use every day, from Siri becoming more capable and more personal across your Apple products to meaningful health insights with Apple Watch to powerful new AirPods features like Live Translation and so much more,” Ternus shared.

Consumers are worried about AI

While Apple has built a trust-based relationship with its customer base, consumers do have an overall fear of AI.

“A majority of Americans (57%) rate the risks of AI for society as high. Far fewer (25%) see high benefits, while 15% rate both the risks and the benefits as significant,” according to a Sept. 2025 Pew Research Center report.

Consumers are wary about the impact AI will have not just on their lives, but on humanity.

“Our survey asked respondents to explain, in their own words, the main reason they see AI as having high or low benefits or risks for society. Those who rate AI negatively most commonly say AI erodes human abilities and connections. Those who see high benefits most often cite gains in efficiency,” the data showed.

Despite those fears, Americans have welcomed AI into their lives.

“About half of U.S. adults now report using AI chatbots, up substantially from the summer of 2024. This includes roughly one-in-four who use these tools on a daily basis,” according to a June 2026 Pew report.

Ternus thinks that, despite any worries people may have about AI, they’re already using iPhone, and that overrides those fears.

“Simply put, iPhone brings powerful AI capabilities together with your personal context on the device you have with you all the time,” he added.

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