From Nasdaq: 2025-02-20 11:32:00

Apple introduced the iPhone 16e, a more affordable version of the iPhone 16 family, featuring the latest A18 chip and Apple Intelligence support. Priced at $599, it offers a 48MP Fusion camera and Apple’s first cellular modem, the C1. This move aims to increase Apple’s market share in price-sensitive regions like China and India.

Despite a slight decline in iPhone sales, Apple saw success in emerging markets like India, where the iPhone was the top-selling model. The company experienced double-digit growth in the installed base in emerging markets. In 2024, Apple maintained its lead over Samsung in the Asia-Pacific region with a 23% market share.

The launch of Apple Intelligence and the growth of its Services business are expected to drive iPhone adoption and revenue growth. Apple now has over 1 billion paid subscribers across its Services portfolio, contributing to its overall success. The company expects low double-digit revenue growth in the second quarter of fiscal 2025.

Apple’s stock is currently trading at a premium valuation, with a forward P/E ratio of 30.45X compared to the sector’s 26.88X. While the company’s focus on Apple Intelligence and Services is promising, it may take time for these initiatives to generate significant returns. Investors may consider waiting for a more favorable entry point into AAPL.

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Read more at Nasdaq: Can the Latest iPhone 16e Push the Apple Stock Higher in 2025?