Apple’s revenue from its largest product line, the iPhone, fell to $46 billion from $51.3 billion in the year-ago period. If Apple is indeed investing significantly in generative AI, it wouldn’t be surprising to see the company equip its next-generation iPhones with AI-focused features. In 2025 and each successive year beyond that, Apple’s biggest challenge is not staying in business or producing massive revenue. However, being great doesn’t always impress Wall Street, especially when your stock is so richly valued. So what Apple will need to do going forward is to justify its valuation to investors.

Apple earnings recap: Tim Cook says he sees demand for iPhone 16 as stock falls on China weakness

“Safe” and “stock market investing” are two things that simply do not overlap. That is evidenced by the fact that this leading company’s stock has suffered numerous 50% drawdowns in its history, including an 81% peak-to-trough decline. The last big test for the broad stock market was in 2022, when the S&P 500 index fell 18%. That said, its strong financial condition is an above-average support mechanism for very long-term investors in the stock. The company’s core product line has shifted away from computers over the years and towards iPhones and devices but computing is still fundamental to the business.

EPS Growth

Earnings are expected to grow to $7.40 a share, which is certainly strong, but also not enough to make the stock inexpensive. The stock decline came amid a broader sell-off in mega-cap tech stocks following earnings reports from Microsoft and Meta Platforms, with shares of both tech firms down about 5%. Looking to the holiday quarter, Apple said it expected sales growth in the low to single united world capital limited digits. The company is planning to launch new Apple Intelligence features in December. Cook said he’s been using early versions of the software and it’s “changing my daily life.” Analysts are expecting Apple to sustain double-digit earnings growth of 11% for the next five years.

The newly minted shares were issued to shareholders after the market closes on Friday, August 28th 2020. An investor that had 100 shares of stock prior to the split would have 400 shares after the split. Finally, Apple provides AppleCare support services, cloud store services, and a host of other service offerings intended to simplify life. Among them are Apple News (subscription news), Apple TV+ (subscription TV with original content), Apple Card (consumer credit card), and Apple Pay (mobile cashless pay feature).

Financial Forecast

1. Please bear with us as we address this and restore your personalized lists.
2. Cook and Maestri tell analysts that the rollout of Apple Intelligence will take longer than with past software updates that Apple typically launches globally, as the company said at WWDC.
3. The company designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
4. Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
5. In 2025 and each successive year beyond that, Apple’s biggest challenge is not staying in business or producing massive revenue.

He argues that the iPhone is on the verge of a supercycle as consumers upgrade their devices to get access to Apple Intelligence features, and Apple will become the first $4 trillion company in 2025. Cook also said Apple Intelligence — a key set of AI features that the company is heavily marketing the iPhone 16 on — was a compelling reason for consumers to upgrade. User adoption of iOS 18.1, which launched in the US on Monday and included the first Apple Intelligence features, was twice the rate of iOS 17.1 a year ago. Overall iPhone demand continued to be strong, with revenue growing 6% year over year to $46.2 billion, beating analyst estimates, though the company continued to face headwinds in China. The company has faced heavy competition from Chinese companies such as Huawei, Oppo, and Xiaomi. Founders Jobs and Wozniak, both college dropouts, founded the company with the idea of changing the way people looked at computers.

Please bear with us as we address this and restore your personalized lists. Like many analysts on Wall Street, asian stock markets us futures sink after fed’s rate cut Chatterjee is looking for evidence that AI features will drive a bump in iPhone sales. Wedbush analyst Dan Ives isn’t budging from him bullish view on Apple heading into the company’s financial results. Like other analysts, Ng is focused on the impact of AI and all of the software features Apple is set to release in the next few months.

Goldman Sachs said it sees “upside to consensus revenue and EPS driven by outperformance in iPhone and Services” in a note last week. Cook thanks Maestri for “shaping Apple as we know it today.” Maestri will continue evidence-based technical analysis reporting to Cook in a new role as head of Apple’s information systems and technology and real-estate development. Apple doesn’t issue complete guidance for the following quarter, but Apple’s CFO does provide some color about what the company is expecting for the holiday quarter.