Apple hits $4trn amid market rally and hot iPhone 17 sales

Core Insights - Apple's valuation surpassed $4 trillion, driven by a stock market rally and investor optimism ahead of its earnings report, which is expected to show strong sales of the new iPhone model [1][2] - The company has joined Nvidia in the $4 trillion club, with shares increasing over 9% this year due to expectations of a robust iPhone cycle and growth in its services division [2] iPhone Demand - Early demand for the iPhone 17 has significantly boosted the stock, with sales in the U.S. and China approximately 14% higher than last year's iPhone 16, and the base model nearly doubling in China [3] - Apple maintained steady pricing and introduced a new ultra-thin "iPhone Air," which launched in China after a brief delay [3] Services Revenue - In the June quarter, Apple reported $94 billion in revenue, a 10% year-over-year increase, with the services division contributing a record $27.4 billion [4] - The combination of hardware dominance and services revenue helps the company remain resilient amid fluctuating iPhone cycles [4] Capital Returns - Apple's board authorized an additional $100 billion in share repurchases, which, while less than the previous year's record, still supports earnings per share by tightening the float [5] AI Features - The rollout of Apple Intelligence, an on-device AI suite, across iPhone, iPad, and Mac emphasizes a privacy-first approach, potentially enhancing the upgrade cycle without incurring high cloud costs [6] Challenges - Potential challenges include tariff costs, regulatory concerns, and a cautious AI rollout in China, but the strong demand for iPhones, the services mix, and disciplined capital returns remain key driving forces [7]