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Based in Cupertino, California, Apple Inc. (AAPL) continues to be a dominant player in the global tech industry. The company is renowned for designing, manufacturing, and selling a range of products, including smartphones, personal computers, tablets, wearables, and accessories. Valued at a market capitalization of $3.6 trillion, Apple also provides payment, digital content, cloud, and advertising services, catering to consumers, small and mid-sized businesses, education, enterprise, and government sectors across the globe.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Apple definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the consumer electronics industry. Apple stands out due to its exceptional brand loyalty, innovative product ecosystem, and commitment to premium design and quality. The seamless integration of hardware, software, and services delivers a distinctive customer experience, ensuring strong user retention.
Apple touched its 52-week high of $237.23 in the last trading session. Over the past three months, AAPL stock gained 3.3%, underperforming the Technology Select Sector SPDR Fund’s (XLK)7.5% during the same time frame.
In the longer term, shares of Apple rose 23.3% in 2024, outperforming XLK’s YTD gains of 21.4%. However, over the past year, AAPL has climbed 25.3%, lagging behind XLK’s 26.4% returns over the last year.
To confirm the bullish trend, Apple has traded over its 200-day moving averages since late July, with slight fluctuations. However, the stock has traded below its 50-day moving average since early August.
Apple has underperformed recently due to weak demand in China, where competition from local companies has intensified, and government restrictions on iPhone use have impacted sales. Additionally, a slowdown in global smartphone sales, driven by longer replacement cycles, and Apple's relatively low involvement in the AI sector have further hindered its growth.
Apple's shares dropped 3.3% on Oct. 23, after TF International Securities analyst Ming-Chi Kuo revealed a reduction of about 10 million units in iPhone 16 orders for late 2024 and early 2025, suggesting weaker-than-expected demand.
In the competitive arena of consumer electronics, Dell Technologies Inc. (DELL) has taken the lead over Apple, showing resilience with a 66.8% uptick on a YTD basis and a solid 70% gain over the past 52 weeks.
Wall Street analysts are moderately bullish on Apple’s prospects. The stock has a consensus “Moderate Buy” rating from the 33 analysts covering it, and the mean price target of $240.79 suggests a potential upside of 1.5% from current price levels.
