Apple is delivering impressive performance that stands out in the technology sector. While numerous tech giants grapple with meeting high expectations, the Cupertino-based corporation has shifted into a higher gear, presenting financial results that have surpassed even the most optimistic projections. The company’s order books are robust, with demand for the new iPhone 17 vastly outstripping supply. This raises a compelling question for investors: is the stock poised for another major rally toward unprecedented highs?
The Engine of Growth: iPhone 17 Demand
The primary catalyst for the current market enthusiasm is unequivocally the iPhone 17. Although only a single week of its sales fell within the concluded fourth fiscal quarter, that brief period was sufficient to shatter revenue records. CEO Tim Cook used unambiguous language, characterizing the customer response as “beyond any scale.”
The current challenge for Apple is not stimulating demand but rather managing it. Production is struggling to keep pace with orders for several models, creating a supply bottleneck. However, this is a high-class problem, strongly indicating the onset of a massive “supercycle” for the device. Looking ahead, management is already forecasting double-digit revenue growth specifically from the iPhone division for the ongoing Christmas quarter.
A Structural Shift Toward Higher Profitability
Beyond its hardware prowess, Apple has successfully cultivated another powerhouse. The Services segment—encompassing the App Store, iCloud, Apple Music, and other offerings—has emerged as a quiet but formidable star. This division posted record revenue of $28.75 billion, marking a substantial 15 percent increase.
For shareholders, the significance of this cannot be overstated. Service revenue is highly recurrent and carries exceptional profitability. The margin profile for this business is nearly double that of hardware sales. As Services now constitute approximately 30 percent of total revenue, the company’s overall profitability is undergoing a structural and positive shift.
Should investors sell immediately? Or is it worth buying Apple?
This foundational strength is further evidenced by several key areas:
* Mac Resurgence: Revenue from Mac computers climbed 13 percent, largely driven by strong MacBook Air performance.
* China Recovery: The critical Chinese market is returning to a growth trajectory, thanks in large part to the iPhone 17.
* Stable Wearables: Product categories like the Apple Watch and AirPods continue to generate stable, multi-billion dollar revenues.
Aggressive Forecast Captivates the Market
Perhaps the most electrifying element for market analysts is Apple’s forward-looking guidance. The company issued an exceptionally aggressive forecast for the December quarter, projecting overall growth between 10 and 12 percent. If achieved, this would represent the most successful quarter in the company’s entire history.
The market is already rewarding this outlook. Shares are currently trading around 235 euros, placing them within striking distance of the 52-week peak.
Positioning for the Next Technological Wave
As the cash registers ring from the iPhone 17 success, Apple is simultaneously preparing for the next major industry shift. The planned integration of advanced AI functionalities and significant Siri updates slated for 2026, combined with the strategic partnership with ChatGPT, holds the potential to energize future hardware upgrade cycles.
Trading at a price-to-earnings (P/E) ratio of 32, the stock is not considered a bargain. Nonetheless, many investors conclude that the powerful combination of record-breaking financials, high-margin service revenue, and compelling AI prospects justifies the current valuation premium.
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