Apple Surpasses $4 Trillion Market Cap, Reaches New Heights
Apple Inc. (AAPL) achieved a notable milestone on Tuesday, closing at an unprecedented all-time high and marking its ascendance to a $4 trillion market capitalization.
This distinguished achievement aligns Apple with industry giants such as Nvidia (NVDA) and Microsoft (MSFT), which both recently crossed this threshold.
The surge in stock value was bolstered by a favorable report from Counterpoint Research, indicating that the newly released iPhone 17 lineup has outperformed the iPhone 16 within its initial 10 days of availability in the United States and China.
Data revealed a 14% increase in year-over-year iPhone sales during this brief period, with consumers particularly favoring both the standard iPhone 17 and the Pro models. Additionally, the newly launched iPhone Air has begun to outperform the iPhone Plus it replaced.
However, in a research update dated October 19, Jefferies analyst Edison Lee cautioned that iPhone sales appear to be losing momentum week-over-week. He noted a decrease in lead times, which is the duration required to receive a phone post-order, indicating a potential softening in demand.
“Our surveillance across six pivotal markets indicates that delivery lead times continue to diminish in most regions and for various models,” Lee stated.
He elaborated that the iPhone 17 Pro currently has zero lead time in the U.S., with three out of the six tracked markets experiencing similar conditions. Moreover, lead times in China have also significantly decreased.
In terms of financial impact, the iPhone remains Apple’s cornerstone, generating $201.2 billion of the company’s total revenue of $391 billion for the fiscal year 2024. The secondary segment, Services, contributed $96.2 billion to the revenue pot.
An Apple logo is prominently displayed at an Apple store in Paris, France, on September 17, 2021. (Reuters/Gonzalo Fuentes)
Unlike Nvidia and Microsoft, which propelled their market caps past the $4 trillion mark largely due to advancements in artificial intelligence and the associated market enthusiasm, Apple appears to be at a relative disadvantage in this sphere.
The tech titan has yet to unveil its anticipated AI-enhanced version of Siri, while competitors such as Google and Samsung have already launched their own AI solutions, Gemini and Galaxy AI, respectively.
Nonetheless, Apple’s formidable user base, boasting over 1 billion iPhones alongside complementary devices such as the Apple Watch and services like Apple TV, ensures a steady flow of returning customers. Sign up for Yahoo Finance’s Week in Tech newsletter.
Source link: Sg.finance.yahoo.com.
