The Magnificent 7 cohort has been dominating market headlines with their stellar performance over the past year, fueled by impressive earnings. These mega-cap giants are under intense scrutiny due to their exponential growth.
Today marked Apple’s AAPL turn to shine as they hosted their much-anticipated Apple Event, unveiling new products and features tailored for consumers. With the rollout of the latest iPhone model set to commence, it’s bound to be a bustling period for the tech giant.
Innovative iPhone 16 Pro Emerges
The spotlight was undeniably on the iPhone 16 Pro at the event, where Apple introduced a plethora of new features for the model. Noteworthy enhancements include improved battery life, upcoming AI capabilities, and the largest display screen ever seen on an iPhone.
The iPhone 16 Pro is ingeniously crafted for Apple Intelligence, the personalized intelligence system that assists users in communication, productivity, and task management with ease. Moreover, the smartphone’s glass is purportedly twice as robust as any other in the market, ensuring durability.
The performance of Apple’s iPhone range has been a mix of hits and misses in recent times, presenting a nuanced picture.
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The new Apple Watch 10 was also unveiled, boasting its most extensive and advanced display to date. Featuring Apple’s first broad-angle OLED Display, the watch facilitates quick and easy screen reading at a glance. Similar to the iPhone, Apple’s Wearables segment has seen a varied performance, surpassing and falling short of expectations within the last year.
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Should Investors Consider Apple Shares?
Apple’s earnings trajectory has notably turned bullish in recent months, especially for the current and upcoming fiscal years. Forecasts project a 9% increase in EPS and a 2% uptick in sales for FY24.
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Although Apple’s growth has shown signs of deceleration, the latest lineup of products could potentially reverse this trend. The company is still in the early stages of its foray into AI, a crucial aspect to consider when evaluating its long-term prospects.
Despite the growth slowdown, Apple continues to be a cash-generating powerhouse, reporting a staggering $34.1 billion in free cash flow in its most recent quarter.
Final Thoughts
Apple AAPL, the behemoth of the tech industry, has introduced an array of new products and models in its recent event, heralding an eventful September. The highlight for investors was undoubtedly the unveiling of AI features within the iPhone 16 Pro, even though they may not be available immediately.
A sleeker Apple Watch and updated AirPods will further bolster the Wearables division, which has exhibited remarkable growth in recent years.
All things considered, Apple might be considered a dark horse in the AI race, maintaining a relatively low profile compared to competitors boasting similar offerings. Despite rich valuation multiples concerning projected growth, the stock remains an exceptional long-term choice for investor portfolios due to its substantial earnings prowess and robust cash position.
