With Apple Starting to See iPhone Sales Momentum, Is Now the Time to Buy the Stock?

Core Insights - Apple reported strong fiscal Q3 results, with significant growth in iPhone and Mac sales, despite overall stock struggles due to broader market conditions [1][8] - The company is facing tariff-related costs, which it plans to mitigate through increased U.S.-based production and a $500 billion investment in the U.S. [5][10] iPhone Sales Performance - iPhone sales grew by 13% year over year to $44.6 billion, surpassing analyst expectations of $40.2 billion, marking the largest quarterly growth since 2021 [2][3] - The strong performance is attributed to the popularity of the iPhone 16 and upgrades from existing users [3][10] Other Product Segments - Mac sales increased by 15% year over year to $8.1 billion, exceeding expectations of $7.3 billion, driven by the new M4 MacBook Air and growth in emerging markets [3] - iPad sales declined by 8% to $6.6 billion, and wearable sales dropped nearly 9% to $7.4 billion [4] Overall Financial Performance - Total product segment sales rose by 8% to $66.6 billion, while overall revenue climbed by 10% to $94 billion, with earnings per share (EPS) increasing by 12% to $1.57, surpassing analyst estimates [5][8] - The services segment, including the App Store and iCloud, saw a 13% revenue increase to $27.4 billion, outperforming the $26.8 billion consensus [7] Market Outlook - Apple anticipates mid- to high-single-digit revenue growth for the quarter ending in September, with services revenue expected to grow similarly [8] - The company reported a 4% revenue increase in China, with the iPhone installed base reaching an all-time high [6] Valuation Considerations - The stock trades at a forward price-to-earnings (P/E) ratio of around 26 based on fiscal 2026 estimates, which may be considered high given uncertainties around AI and regulatory risks [12][13]