Apple he passed for the first time the 4.000 billions of dollars of market value, third Big Tech company to reach this milestone, thanks to robust demand for its latest models of iPhone which has dissipated fears of slow growth in the race for artificial intelligenceApple shares gained about 13 % since the launch of the new models on September 9, in a remarkable turnaround that has pushed the stock into positive territory for the first time this year.
Apple: The iPhone's (good) weight, according to analysts
"The iPhone accounts for more than half of Apple's earnings and revenue, and the more phones it can get into people's hands, the more it can attract people into its ecosystem," said Chris Zaccarelli, chief investment officer at Northlight Asset Management, ahead of this milestone. Apple shares had suffered earlier this year due to concerns for strong competition in China and uncertainties about how the company would handle high U.S. tariffs on Asian economies like China and India, its main production centers. The latest smartphones, including the range iPhone 17 andiPhone Air, have regained customers from Beijing to Moscow in the first few weeks after launch, as the company absorbed the high costs of tariffs.
Analysts said that the slim design of the iPhone Air could help fend off rivals including Samsung Electronics, while initial sales of the iPhone 17 outsold its predecessor by 14% in the US and China, according to data from research firm Counterpoint.
Brokerage firm Evercore Isi predicts that the strong demand for the latest iPhones from Apple will help exceed market expectations for the quarter ending in September and to publish optimistic forecasts for the quarter ending in December.
Apple is the third to surpass $4 trillion after Nvidia and Microsoft
Apple is therefore the third company to reach the $4 trillion mark after Nvidia e ecosystem. Nvidia is currently at the top of the standings with a market value of over $4,5 trillion. Apple's cautious approach to artificial intelligence has fueled fears of losing what could be the industry's biggest growth catalyst in decades. Recent reports also indicate that the company is losing several senior AI executives to Meta. The company has been slow to launch its Apple Intelligence suite, including the integration of ChatGpt, while an artificial intelligence update for its voice assistant Siri has been postponed until next year.
Apple: Why AI is weighing on the stock
According to some reports, Apple has been evaluating several collaborations with Alphabet's Gemini AI, Anthropic e OpenAI"The lack of a well-defined AI strategy is clearly one of the issues weighing on the stock. If they could figure out how to integrate AI in a way that excites consumers and the market, we'd see a completely different company," Zaccarelli said.
Apple: how much has the stock gained compared to the Nasdaq?
Apple posted some of its strongest quarterly results in recent years in the April-June period, with a double-digit growth in all key segments and forecasts better than analysts' expectations. The company is expected to announce fourth-quarter results on October 30. According to data collected by LSEG, The iPhone maker's shares are trading at 33,2 times expected 12-month earnings., up from $27,42 on the Nasdaq 100. Apple shares have gained more than 7% this year, largely underperforming the Nasdaq which gained about 22%.
