Apple (AAPL, Financial) has unveiled its latest suite of Apple Intelligence features, designed to enhance the user experience on various devices, including iPhone, iPad, Mac, Apple Watch, and Apple Vision Pro. These features introduce capabilities like Live Translation and updates to visual intelligence, along with improvements in Image Playground and Genmoji. Moreover, Shortcuts now integrate directly with Apple Intelligence, while developers gain access to an on-device large language model that prioritizes privacy and operates offline.
The company indicated these new functionalities are available for testing immediately and will be rolled out this fall on compatible devices with supported languages. Feedback suggests Apple’s recent Worldwide Developers Conference (WWDC) focused heavily on design and platform upgrades, offering only minor advancements in AI features. Analysts from Morgan Stanley maintain an Overweight rating with a $235 price target, suggesting Apple's AI potential remains significant despite limited short-term breakthroughs.
Wedbush continues to rate Apple as Outperform with a $270 price target. While acknowledging that Apple is cautiously advancing its AI strategy after past challenges, they anticipate significant developments in the coming years. The firm highlights that Apple is beginning to establish its AI roadmap leading up to 2026 and beyond, with expectations for further acquisitions to strengthen its position in the AI market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 41 analysts, the average target price for Apple Inc (AAPL, Financial) is $231.02 with a high estimate of $300.00 and a low estimate of $141.00. The average target implies an upside of 14.52% from the current price of $201.72. More detailed estimate data can be found on the Apple Inc (AAPL) Forecast page.
Based on the consensus recommendation from 51 brokerage firms, Apple Inc's (AAPL, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Apple Inc (AAPL, Financial) in one year is $209.54, suggesting a upside of 3.88% from the current price of $201.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Apple Inc (AAPL) Summary page.
AAPL Key Business Developments
Release Date: May 01, 2025
- Revenue: $95.4 billion, up 5% year over year.
- Diluted EPS: $1.65, up 8% year over year.
- iPhone Revenue: $46.8 billion, up 2% year over year.
- Mac Revenue: $7.9 billion, up 7% year over year.
- iPad Revenue: $6.4 billion, up 15% year over year.
- Wearables, Home, and Accessories Revenue: $7.5 billion, down 5% year over year.
- Services Revenue: $26.6 billion, up 12% year over year.
- Gross Margin: 47.1%.
- Operating Expenses: $15.3 billion, up 6% year over year.
- Net Income: $24.8 billion.
- Operating Cash Flow: $24 billion.
- Shareholder Returns: $29 billion returned, including $3.8 billion in dividends and $25 billion in share repurchases.
- Cash and Marketable Securities: $133 billion.
- Net Cash: $35 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Apple Inc (AAPL, Financial) reported $95.4 billion in revenue, up 5% year over year, with a March quarter record for diluted EPS at $1.65.
- Services achieved an all-time revenue record of $26.6 billion, growing 12% compared to the prior year.
- iPhone revenue increased by 2% year over year, driven by the iPhone 16 family, with a strong active installed base.
- Mac revenue grew by 7% year over year, with every geographic segment showing growth and high customer satisfaction.
- Apple Inc (AAPL) announced plans to invest $500 billion in the US over the next four years, expanding facilities and sourcing more components domestically.
Negative Points
- Wearables, Home, and Accessories revenue declined by 5% year over year, facing a difficult comparison against previous product launches.
- The company faces a potential $900 million cost impact from tariffs in the June quarter, with uncertainty about future tariff changes.
- China revenue decreased by 2% year over year, although it was roughly flat when adjusted for foreign exchange headwinds.
- Product gross margins decreased by 340 basis points sequentially, driven by mix, foreign exchange, and seasonal loss of leverage.
- There are ongoing legal challenges, including the Epic case and Google antitrust trial, which could impact Apple Inc (AAPL)'s Services business.
