Five years later, with Apple stock price at an ever-higher $88.99, Apple issued a third two-for-one stock split. Apple could also see its services revenue grow 13% year-over-year, thanks to continued momentum across subscription services like iCloud+ and AppleCare+, analysts added. The research firm said it believed that the company’s sales in China would pick up over the near term. Profit margins could also improve on demand for Apple’s new lineup of iPhones, analysts said, adding that they believed Apple was “getting its groove back.”

Apple CFO says AI investments drive operating expenses

Still, “key areas of debate” among investors include the sustainability of iPhone demand due to trade policy uncertainty, as well as risks to the company’s App Store revenue, the bank said. The bank estimated that iPhone product revenue could see a 10% year-over-year increase to $50.8 billion, compared to the consensus estimate of $49.8 billion in revenue for the quarter. The bank also said it expects Apple to post solid revenue growth in the first quarter of its 2026 fiscal year.

Cook says Apple is continuing its US investment with its Apple Manufacturing Academy in Detroit and the $600 billion investment it promised over the next four years. The areas of growth in the US include advanced manufacturing, silicon engineering, and artificial intelligence, the CEO says. Apple reported roughly $1.1 billion in tariff-related costs in its fiscal Q4, in line with its previous forecast.

The miss comes after Apple released the iPhone 17 lineup and the iPhone Air experienced delays in the region — though only about a week of iPhone 17 sales are reflected in Apple’s fiscal fourth quarter. Apple CEO Tim Cook kicks off the call with opening remarks on the growth areas and the record highs the company hit in revenues in several categories. Looking ahead to the December holiday quarter, Cook says he expects it to be the “best” yet. Apple doesn’t split its own internal advertising and licensing within its ad business. Apple’s service category also includes payments from Apple’s $20 billion search deal with Apple.

To make up for what it lacks in battery life, Apple released an external battery pack alongside the iPhone Air, which costs $99. But Apple’s battery-rich Pro models, with top-of-the-line cameras, are typically the company’s most popular, and reports have begun to emerge that Apple is cutting back on Air production. In fiscal Q3, the company reported a record high of $27.4 billion in services revenue. For this most recent quarter, Wall Street estimates that Apple will surpass that figure with $28.18 billion in revenue. “As we continue to expand our investment in AI, we’re bringing intelligence to more of what people already love about our products and services, making every experience more personal, capable, and effortless,” Cook says. In a call with analysts, Apple said it planned to increase its capex spending in the holiday quarter, driven by expanding AI investments — a theme in Big Tech earnings this quarter.

Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

Top Analyst

• Apple’s newest iPhone lineup is outperforming last year’s models in both the US and China, two of its most important markets, according to data from Counterpoint Research.
• On December 12, 1980, Apple stock began trading on the Nasdaq at  $22 per share.
• Apple’s services business, which includes revenue from iCloud, Apple TV+, and its $20 billion search engine deal with Google, among others, has long been a highlight of Tim Cook’s tenure at the helm.
• We’ll soon see if it managed to mitigate those costs down below that estimate — or whether the impact was worse than anticipated.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers and resellers. The company was formerly known as Apple Computer, Inc. and changed its name to Apple Inc. in January 2007. Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories.

That’s a wrap! Apple’s analyst call ends as the stock trades up 3% after hours.

This price reflects trading activity during the overnight session on the Blue Ocean ATS, available 8 PM to 4 AM ET, Sunday through Thursday, when regular markets are closed. JPMorgan said it expected Apple earnings to “track modestly better” from September through the end of the year, thanks to strong demand for the iPhone 17. Asked about capex growth on Apple’s last earnings call, CFO Kevan Parekh said that “a significant portion of the driver of growth that you’re seeing now is really driven by some of our AI-related investments.” Demand for the iPhone 17 lineup appears strong, according to third-party data, with the entry-level 17 and high-end Pro models the early standouts. We’ll soon see if it managed to mitigate those costs down below that estimate — or whether the impact was worse than anticipated.

Analyst Recommendations

• The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers and resellers.
• The iPhone 17, which had only had about a week of sales recorded in the quarterly numbers released, is “resonating around the world,” Cook said.
• Looking to the holiday quarter, Apple’s CFO said the company expects total revenue to increase 10-12% year over year — higher than Wall Street analysts expected — and iPhone sales to grow double digits.
• Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.
• “We are increasing our investments in AI while also continuing to invest in our product road map,” CFO Kevan Parekh said.

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Apple Analyst Data

On June 21, with Apple’s stock  price at $101.25, Apple issued two shares to investors Hedging forex at $55.62. Market Domination host Josh Lipton examines some of Wednesday’s trending tickers. Apple (AAPL) is reportedly nearing a deal with Alphabet (GOOG, GOOGL) to overhaul Siri, according to Bloomberg. Teva (TEVA) stock rose after the company reported earnings, while Axon (AXON) stock fell after the company’s quarterly results missed estimates. To watch more expert insights and analysis on the latest market action, check out more Market Domination. Analysts also said they saw “strength” in new iPhone demand, and estimated that total iPhone unit sales could reach 57 million for the current quarter, compared to consensus estimates of 54 million.

Analysts pointed to revenues potentially increasing due to AI and its possible impact on coming product offerings. Then there are reports of new home devices and AR glasses — all of which will need good AI. Don’t expect Tim Cook to break character and start gossiping about future products, but this would be a good time for a bit of extra candor. US shoppers discovered earlier this month that the M5 Vision Pro, a refreshed model, is labeled as being a product of Vietnam.

Looking to the holiday quarter, Apple’s CFO said the company expects total revenue to increase 10-12% year over year — higher than Wall Street analysts expected — and iPhone sales to grow double digits. If those growth projections hold, Apple’s CFO said it would be “our best quarter ever.” Thanks to the astronomical rise over the years, Apple split the stock again in June 2014, this time seven-for-one. Three years later, in 2017, with Tim Cook at the helm and a services business providing a bulk of revenue, Apple’s stock price is still steadily climbing. Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com.

This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders. After Apple’s first two-for-one stock split in June 1987, shareholders received two shares at a stock price of $41.50 each for their stock which had closed the previous day at stock price of $78.50. On December 12, 1980, Apple stock began trading on the Nasdaq at  $22 per share.

CFRA Research eyeing More clarity on tariffs.

Apple II sold at a minimum $1,298 price point, setting the stage for much bigger cash flow into a growing Apple. Zino pointed to how investors now have more clarity relating to Apple’s regulatory issues and the potential impact of tariffs. “While the market remains fixated on AI adoption and monetization, Apple proves that the old recipe still works,” Thomas Monteiro, senior analyst at Investing.com, said.

Apple reported over $28.7 billion in services revenue this quarter, up from just under $25 billion in the same quarter last year. Apple CEO Tim Cook said in the earnings press release that this was an “all-time revenue record for Services.” Recent reports highlight Apple’s potential in humanoid robotics, estimating $133 billion in revenue by 2040, and showcase its record quarter with $416 billion in revenue.

Steve Jobs, the largest shareholder, made $217 million on the first day of trading. By the end of trading on that Friday afternoon, Apple’s stock price had risen by almost 32%, closing near a stock price of $29 and resulting in a market value of $1.778 billion for Apple. Apple’s services business, which includes revenue from iCloud, Apple TV+, and its $20 billion search engine deal with Google, among others, has long been a highlight of Tim Cook’s tenure at the helm. Cook has grown areas like Apple TV+ into household names, and the services segment’s consistent revenue growth has helped insulate Apple amid turbulence in the US smartphone market.