From Morningstar: 2024-04-25 06:12:00

Apple is set to release its first-quarter earnings report on May 2, with a focus on weak iPhone sales due to competition in China and longer replacement cycles globally. Profitability is expected to remain strong alongside services growth. Analysts suggest Apple may announce new AI developments soon.

Morningstar’s key metrics for Apple stock indicate a fair value estimate of $160 with a 3-star rating. Bulls praise Apple’s ecosystem and in-house chip development, while bears raise concerns about cyclicality, supply chain vulnerability, and regulatory pressures. The stock is considered fairly valued compared to long-term estimates.

Services are projected to be Apple’s next-biggest revenue source, driven by Google revenue and App Store sales. Continued growth is expected in various service segments, with gross margins forecasted to rise to 48% by fiscal 2028. Margin expansion is anticipated from higher-margin hardware and cost-saving R&D efforts.



Read more at Morningstar: Ahead of Earnings, is Apple Stock a Buy or Sell?