Worried About Apple Slowing Down? 1 Must-See Metric That Might Change Your Mind.

Core Viewpoint - The market sentiment towards Apple has been negative, with the stock down 21% year to date, but there are metrics indicating potential long-term growth opportunities [1][10]. Group 1: Market Performance - Apple's stock has underperformed compared to the S&P 500, which is starting to recover [1]. - iPhone sales have shown only a 2% increase year over year in the fiscal 2025 second quarter, indicating a slowdown in growth [4]. Group 2: Ecosystem and User Engagement - Apple has a robust ecosystem that fosters long-term loyalty, with over 2.3 million iPhones in circulation and high upgrade rates among users [3]. - Service revenue increased by 12% year over year in the second quarter, contributing to a stronger bottom line [5]. - The ecosystem creates a "stickiness" that keeps customers engaged with various Apple services, enhancing user satisfaction [7]. Group 3: Youth Engagement and Future Prospects - A survey indicated that 88% of teens own an iPhone, with 25% planning to upgrade to the iPhone 17 next year, up from 22% the previous year, showcasing strong future demand [8]. - Engaging younger customers is crucial for Apple's long-term revenue stream, as they are likely to become loyal fans [9]. - Despite current challenges, the satisfaction among young users with Apple products is a positive indicator for future growth [10].