Why the Next Quarter Could Be the ‘Best Ever’ for Apple Stock

Core Insights - Apple's guidance for the December quarter suggests it could be the company's strongest period ever, with revenue expected to grow between 10% and 12% year-over-year, forecasting sales to reach $138 billion in Q1 of 2026, surpassing consensus estimates of $132.3 billion [1] Group 1: iPhone Performance - The current iPhone refresh cycle is noted as record-breaking, with a simultaneous increase in the rate of upgrades and the number of upgrading customers, alongside new customers entering the Apple ecosystem [2] - Consumer enthusiasm is driven by features like the advanced camera system and ultra-thin iPhone Air design, with CEO Tim Cook citing "off-the-chart" demand for iPhone 17 devices and increased global store traffic [3] - Several iPhone 17 models are supply-constrained, indicating that demand is outpacing manufacturing capabilities [3] Group 2: Financial Performance - In the quarter ended September, Apple reported revenue of $102.47 billion, marking an increase of almost 9% year-over-year, with services sales rising by 15% to $29 billion and Mac sales increasing by 13% [4] - Citi raised the price target for AAPL stock from $245 to $315, indicating a potential upside of 16% from current levels [4] Group 3: Services Growth - The installed base of active devices has reached all-time highs across all product categories and geographic segments, providing a strong foundation for future services revenue growth and hardware upgrades [5] - Services sales reached an all-time record of $29 billion, showcasing double-digit growth across most categories and markets, with payment services achieving record revenue driven by growth in Apple Pay active users [6] - For the full fiscal year, services generated over $100 billion in annual revenue, representing a 14% year-over-year increase [6]