Apple Inc. (NASDAQ: AAPL) stock rallied 4% yesterday on the back of research that showed brisk sales of the iPhone 17. The stock has risen 22% in the past three months, compared to 7% for the S&P 500. After prolonged anxiety about how well the iPhone would sell without a major AI-based operating system upgrade, Loop Capital and Evercore recommended the stock.
Research firm Counterpoint said the new iPhone sales in China, the world’s largest smartphone market, were strong. The data was based on the first 10 days of sales after the iPhone 17’s release. “The base model iPhone 17 is very compelling to consumers, offering great value for money,” Counterpoint senior analyst Mengmeng Zhang wrote in his report. He mentioned a better battery and better camera as the primary reasons. He also pointed to an improvement in U.S. sales.
Many investors would take profits after such a strong run-up. Famous stock picker Jim Cramer said that would be a bad idea. Instead, he recommended that it is not the time to sell Apple. The iPhone 17 demand is too strong, and Apple’s brand remains powerful among buyers of consumer products. He also noted that retailers were offering subsidies and attractive trade-ins. The carriers take the hit on these, so Apple’s margins don’t get dented. “As long as Apple makes the best products, people will buy them,” Cramer added.
Cramer also said people are too focused on criticisms about Apple’s future. This includes worries about its artificial intelligence strategy and the fact that some of its most senior AI executives have departed to companies like Meta. Alphabet and other large tech companies are still willing to spend billions of dollars for Apple partnerships.
Finally, Cramer pointed to the 1.5 billion iPhone installed base. This base drives Apple’s Services revenue. In the most recently reported quarter, out of total revenue of $94 billion, iPhone sales were $44.6 billion and Services revenue was $27.4 billion.
Until yesterday, Apple’s stock had languished for the year. A wave of good news led to Cramer’s positive comments and to the new rally.
Apple Stock Price Prediction and Forecast 2025-2030
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