Apple Inc. (AAPL) shares have surged by 41.5% over the past six months, surpassing the Zacks Computer and Technology sector’s 28.4% return. This growth is attributed to a strong Services sector, successful iPhone 17 adoption, and an updated Mac product line, despite challenges such as competition in China and uncertainties regarding tariffs. As of September 27, 2025, Apple holds $132.42 billion in cash and marketable securities against $90.68 billion in term debt, solidifying its strong financial position.
Looking ahead, Apple anticipates double-digit growth in iPhone sales in the upcoming December quarter (Q1 of fiscal 2026), buoyed by sales of the iPhone 16 and iPhone 17. The Zacks Consensus Estimate for Q1 fiscal 2026 earnings is $2.65 per share, reflecting a 10.42% increase year-over-year, with projected revenues of $137.46 billion, indicating a growth of 10.59% compared to the prior year.
However, Apple faces intense competition from AI-focused companies like Alphabet and Microsoft, as well as in the smartphone market from brands such as Samsung and various Chinese manufacturers. Analysts suggest that AAPL shares may be overvalued, presently trading at a forward price/sales ratio of 8.97x compared to the sector’s 6.82x. Given this competitive landscape and valuation concerns, the price outlook remains cautious.
