Apple Stock: Is iPhone 17 the Turning Point for the Magnificent 7 Laggard?

Core Insights - The article discusses the performance and market dynamics of the "Magnificent 7" tech companies, highlighting Apple's challenges and opportunities in 2025 [1][4][15]. Group 1: Market Capitalization and Influence - The "Magnificent 7" includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, collectively holding a market capitalization of approximately US$22 trillion, significantly impacting the S&P 500 [2][3]. - In 2025, Broadcom surpassed Tesla in market capitalization, indicating shifts in market leadership among these tech giants [1][2]. Group 2: Apple's Financial Performance - Apple's net sales for FY2024 reached US$391.04 billion, a modest 2% increase year-on-year, while net income declined to US$93.74 billion, marking a second consecutive year of decline [5][6]. - The company's sales in Greater China have decreased from US$74.2 billion in FY2022 to US$66.95 billion in FY2024, emphasizing the need to maintain its premium positioning [10]. Group 3: Product Launch and Consumer Loyalty - The launch of the iPhone 17 on September 19, 2025, is seen as a potential turning point for Apple, with the Pro models exceeding expectations and prompting increased production [7][8]. - Despite competition from Xiaomi, Apple's flagship products continue to demonstrate significant consumer loyalty, with the iPhone sales remaining stable around US$200 billion [12][14]. Group 4: Services Segment Growth - Apple's Services segment is becoming a crucial growth driver, nearing US$100 billion in FY2024, supported by recurring income from subscriptions like Apple Music and iCloud [13]. - The performance of the Services segment is increasingly important as hardware sales face challenges, particularly in the Mac and iPad categories [11][13]. Group 5: Competitive Landscape and Future Outlook - The competitive landscape is intensifying, particularly in the premium smartphone market, with Xiaomi's recent launch posing a direct challenge to Apple [9][14]. - Looking ahead, the anticipated "flip" iPhone in 2026 is viewed as a significant opportunity for Apple to reignite consumer excitement and drive growth [8][14].