Apple(US:AAPL) Sou Hu Cai Jing·2025-10-22 12:49Core Insights - Apple's stock price reached a historic high of $262.24, marking the first such milestone since 2025, resulting in a market capitalization of $3.9 trillion and surpassing Microsoft as the second-largest company in the U.S. by market value [1][3] - The surge in stock price is attributed to strong sales of the iPhone 17 series, which saw a 14% increase in sales compared to the previous iPhone 16 within the first ten days of launch in both China and the U.S. [1][3] Sales Performance - The iPhone 17 series has shown robust performance, with the basic model in China selling nearly twice as much as the iPhone 16, and total sales in both markets increasing by 31% [3][4] - The sales growth in China is driven by a value-for-money strategy, with the iPhone 17 offering enhanced features at the same price as the iPhone 16 [4][3] Market Dynamics - In the U.S., the demand for high-end models, particularly the iPhone 17 Pro Max, has been strong, supported by a 10% increase in purchase subsidies from major retailers, reaching up to $100 [5][4] - Wall Street's sentiment has shifted positively, with Loop Capital upgrading Apple's rating from "hold" to "buy" and setting a target price of $315, indicating a potential upside of about 20% from the recent closing price [6][7] Investment Implications - Berkshire Hathaway's significant reduction of Apple shares from 906 million to 280 million has resulted in a missed opportunity of nearly $50 billion in potential gains, as the average selling price was around $185 per share [8][9] - Despite the strong sales of the iPhone 17, Apple faces challenges, particularly in AI applications, where it lags behind competitors like Samsung and Google [10][11] Valuation Concerns - Apple's current price-to-earnings ratio exceeds 32, significantly higher than its 10-year average of 22 and above the Nasdaq 100 average, making it one of the most expensive stocks among the "Big Seven" tech companies [11]