Apple is launching new iPhone 16 line with AI technology, Services business growth, but overvalued stock.

From Nasdaq: 2024-09-02 11:34:00

Apple is gearing up to launch the Apple Intelligence-powered iPhone 16 line-up at an event on Sep. 9, alongside details of the Apple Watch 10. Since unveiling Apple Intelligence at WWDC in June, Apple shares have surged 18.6%, signaling strong investor interest in the company’s advancements in AI technology.

The new iPhone 16 and iPhone 16 plus will be powered by the A18 chip with 8GB for Apple Intelligence support. Additionally, the iPhone 16 Pro and iPhone 16 Pro Max phones are expected to be equipped with the A18 Pro chip. This significant upgrade in hardware is expected to enhance user experience and boost Apple’s competitive position in the market.

Apple’s Services business continues to drive growth for the company, with revenues growing 14.1% year over year in the fiscal third quarter. Expanded offerings such as Apple TV+, Apple Pay, and Apple Fitness+ are attracting more users, contributing to the Services segment accounting for 28.2% of total sales.

While Apple’s AI push and Services business present opportunities for growth, concerns remain about the company’s overvalued stock, with a forward 12-month P/E of 30.59X. Additionally, challenges in the Chinese market, where sales have declined, pose a threat to Apple’s growth prospects. Investors are advised to approach AAPL stock cautiously.



Read more at Nasdaq: To Buy or Not to Buy Apple Stock Pre Sept. 9 iPhone 16 Event?