Apple stock has had a rocky start to 2025. But after its introduction of a lower-cost iPhone, investors might be wondering: Is Apple stock a buy right now?
The consumer electronics giant on Wednesday announced the iPhone 16e, its new budget smartphone. It replaces the third-generation iPhone SE and features a revamped design and improved technical specs. The iPhone 16e also is capable of running artificial intelligence applications, branded Apple Intelligence.
The iPhone 16e runs on a version of Apple's A18 processor. It sports improved cameras and adds satellite communications features for when users are outside of cellular and Wi-Fi coverage.
Apple is hoping the new lower-cost iPhone will boost its sluggish handset sales. The device starts at $599, vs. the cheapest iPhone 16 handset at $799.
Wall Street analysts say the new iPhone should help Apple better compete in more price-sensitive markets, such as China. But some expressed concern that it could cannibalize sales of higher-priced iPhone 16 handsets.
"Whether or not the iPhone 16e will cannibalize sales from the iPhone 16 or incentivize upgrades is something investors will be watching closely," BofA Securities analyst Wamsi Mohan said in a report Wednesday.
Mohan predicts that Apple will sell 10 million units of the iPhone 16e in fiscal 2025 vs. 65 million units of the regular and Pro models of the iPhone 16. He rates Apple stock as buy with a price target of 265.
Recent Apple Stock News
Apple stock rose slightly after the iPhone 16e announcement, which was widely expected. In a positive sign, it climbed above its 50-day moving average late last week.
On Jan. 30, Apple beat Wall Street's earnings target for its fiscal first quarter while matching views on sales.
Apple earned $2.40 a share, up 10% year over year, on sales of $124.3 billion, up 4%, in the quarter ended Dec. 28. Earnings per share topped the consensus estimate of $2.35 while sales were in line with views.
Apple's iPhone sales declined 0.8% to $69.14 billion in the December quarter. However, Apple said its iPhone sales rose in those markets where it had rolled out Apple Intelligence features.
Apple Intelligence is now available in the U.S., U.K., Australia, Canada, New Zealand and South Africa. The company plans to expand its availability to new markets and languages beyond English starting in April.
On Feb. 11, Apple stock rose on news that Apple had chosen to partner with e-commerce firm Alibaba to bring AI services to its devices in China. Apple Intelligence in China will rely on Alibaba's Qwen model.
Is Apple Stock A Buy Right Now?
No, Apple stock is not a buy right now. But it soon could be. Apple stock has formed a cup base with a buy point of 260.10, according to IBD MarketSurge charts. That buy point is also the stock's all-time high, reached on Dec. 26.
However, IBD analysis indicates that Apple stock could offer an early entry above its Jan. 31 high of 247.19.
Apple stock ended regular-session trading Thursday at 245.83.
AAPL stock has an IBD Composite Rating of 90 out of 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Apple stock has an IBD Relative Strength Rating of 82 out of 99. The Relative Strength Rating shows how a stock's price performance stacks up against all other stocks over the last 52 weeks.
Keep an eye on the overall stock market. If the market turns south, don't try to fight the general stock market direction.
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