Apple (AAPL) Stock Forecast & Price Target

Apple is projected to experience revenue growth of 4% year-over-year in FY25, primarily fueled by strong double-digit growth in its Services segment alongside low-single-digit growth in Product sales. The company's ability to sell approximately 225 to 230 million iPhones in FY25 and anticipate an increase to 245 to 250 million units in FY26 underscores robust consumer demand, particularly attributed to heightened interest in the iPhone 16 and a favorable shift towards higher-end models. Coupled with positive surprises in gross margins and the re-acceleration of services revenue despite challenging comparisons, Apple is positioned to achieve earnings of $8.20 in CY26 and possibly over $9 by FY27, indicating a healthy financial outlook reinforced by ongoing product and technology enhancements.

Apple's financial outlook remains negative primarily due to a projected slowdown in revenue growth, with the company expected to experience only low single-digit year-over-year revenue increases in FY25, driven by weakened consumer spending and broader economic pressures. The disappointing iPhone 16 cycle, exacerbated by intense competition and a delayed rollout of advanced features, has led to revised shipment expectations for upcoming years, potentially reducing iPhone shipments by 1-5% in CY25 and CY26. Additionally, the deceleration in service growth, along with growing bearish sentiment fueled by concerns surrounding AI enhancements and geopolitical pressures like China tariffs, adds to the uncertainty surrounding the company's performance.