Apple(US:AAPL) 智通财经网·2025-08-18 08:33Core Viewpoint - Bank of America reaffirms a "buy" rating for Apple (AAPL.US) with a target price of $250, highlighting stable cash flow, resilient profitability, and a strong capital return plan [1] Group 1: Revenue Contribution - Apple's service business is expected to contribute more to gross profit than the iPhone business, with gross margins projected to rise to around 50% over time [1][7] - By fiscal year 2025, the service business is estimated to account for 42% of annual gross profit, surpassing the iPhone's contribution of 41%, with the gap expected to widen by fiscal year 2027 to 44% for services and 39% for iPhone [1] Group 2: Growth Projections - The service business is anticipated to grow at a low double-digit percentage rate, with a projected year-over-year growth rate of 12% for the next few years [4] - Despite the cyclical nature of iPhone sales, the service revenue is viewed as sustainable and long-term [4] Group 3: Valuation Insights - The current stock price is valued at 29.5 times Wall Street's earnings forecast for fiscal year 2026, with a long-term valuation range between 10 to 33.5 times, and a median of 21 times [4] - A higher proportion of gross profit from stable and sustainable revenue sources (service business) is expected to justify a higher price-to-earnings ratio [4] Group 4: Margin Dynamics - Gross margins are expected to continue rising despite concerns over tariffs and potential negative impacts from antitrust rulings against Google, with foundational business factors driving margin increases [7] - Positive influences on gross margins are anticipated from product mix, vertical integration, pricing strategies, and favorable foreign exchange effects by the end of the quarter [7]