Apple Stock Plunged on Tariff News, But It's Proving to Be Unstoppable in Another Lucrative Area

Core Viewpoint - Apple is currently facing challenges due to a 145% tariff on goods from China, which could impact its production and profitability, as 80% of its manufacturing is based in China [1][2] Group 1: Financial Performance - In fiscal 2024, Apple generated $391 billion in revenue, with 75% from product sales and 25% from services, which grew by 13% in the latest fiscal year [3] - The services division is becoming a significant revenue driver for Apple, highlighting diversification in its business model [2][3] Group 2: Financial Services Expansion - Apple has made significant strides in financial services, launching Apple Pay in 2014, which is accepted by over 90% of U.S. retailers and has more than 600 million global users [4] - The Apple Card, launched in 2019, has 12 million customers and $20 billion in balances, offering up to 3% cash back with no fees [5] Group 3: Partnerships and Market Position - Major financial institutions like Visa and American Express are vying for partnerships with Apple, indicating the company's strong revenue potential and affluent customer base [6][7] - The competition among issuers to take over the Apple Card program reflects the value that Apple brings to financial services [6][8] Group 4: Stock Valuation and Market Outlook - Apple shares are currently 26% below their peak, with a price-to-earnings ratio of 30.2, which is an improvement from December [9] - Despite the strong business fundamentals, there are concerns about Apple's growth prospects and the impact of tariffs on future performance [10][11]