With Strong Holiday Outlook for iPhones, Can Apple ETFs Gain Ahead?

Core Viewpoint - Apple shares have shown mixed performance recently, with a notable increase following positive earnings results, indicating strong demand for the iPhone 17 despite previous concerns about its launch [1][2]. Financial Performance - Apple reported record revenues and iPhone sales in its fourth-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates [3]. - Services revenue reached a record of $28.8 billion [3]. - The Americas' sales were $49.03 billion, up 6.1% year over year, accounting for 47.8% of total revenues [8]. Product Demand - The iPhone 17 series sold 14% more units than the iPhone 16 in the first 10 days post-launch in the U.S. and China, with the base iPhone 17 and iPhone 17 Pro Max experiencing the highest demand [5]. - CEO Tim Cook anticipates the December quarter's revenues to be the best ever for both the company and the iPhone, suggesting strong sales momentum [4]. Competitive Landscape - Apple faces stiff competition in China, with local players like Xiaomi launching flagship models to challenge its market position [9]. - Despite holding 62% of the global premium smartphone market in the first half of 2025, Apple has lost market share in China to competitors like Huawei and Xiaomi [10]. Valuation Concerns - Apple's stock is considered moderately costly, trading at a forward P/E of 33.84X, which is higher than several competitors, including Meta and Microsoft [12]. AI Initiatives - Apple is perceived as lagging in AI advancements compared to peers, but CEO Cook sees AI as a new opportunity for the App Store, with expectations for improved AI features in the future [6][7].