Apple has officially surpassed a $4 trillion market value, becoming the third Big Tech company in history to achieve this milestone, after Nvidia and Microsoft. The milestone comes amid robust demand for its iPhone 17 lineup and the iPhone Air, which have helped lift shares about 13% since their launch on September 9, marking Apple’s first positive performance for the year.
The iPhone remains a critical revenue driver, accounting for more than half of Apple’s profit. Analysts say the iPhone Air’s slim design positions Apple to compete effectively against rivals like Samsung Electronics, while early sales of the iPhone 17 have outperformed its predecessor by 14% in key markets such as the U.S. and China, according to research firm Counterpoint. Brokerage Evercore ISI expects the strong demand to exceed market expectations for the quarter ending September, with upbeat forecasts anticipated for the December quarter.
Apple shares had faced headwinds earlier in the year due to stiff competition in China and uncertainties related to high U.S. tariffs affecting its major manufacturing hubs in Asia. While Apple has taken a cautious approach to artificial intelligence, including delayed upgrades to Siri and a slower rollout of the Apple Intelligence suite, reports indicate ongoing collaborations with Alphabet’s Gemini AI, Anthropic, and OpenAI.
Chris Zaccarelli, chief investment officer of Northlight Asset Management, noted, “The lack of a well-understood AI strategy is one of the overhangs for the stock. If Apple can incorporate AI in a way that excites consumers, it would transform the company.”
Apple reported its strongest quarterly results in years during April-June, achieving double-digit growth across key segments and surpassing analyst expectations. Its shares currently trade at 33.2 times projected earnings for the next 12 months, compared to 27.42 for the Nasdaq 100, reflecting the company’s strong valuation. Apple is expected to announce its Q4 results on October 30, which could further impact investor sentiment.
Despite underperforming the Nasdaq 100 this year, Apple’s milestone highlights the enduring appeal of its ecosystem, driven largely by iPhone sales and global brand loyalty.
