Core Viewpoint - The analysis indicates that Apple may benefit from a 15% increase in prices due to rising memory costs, although this could lead to a slight decline in unit growth as consumers may delay purchases or opt for lower-spec models [1][2]. Group 1: Price Impact and Consumer Behavior - A 15% price increase translates to approximately $150 more per device, which is significant and may deter some consumers from purchasing [1]. - Initial estimates for unit growth in fiscal year 2027 were around 5-6%, but these have been adjusted to flat growth due to price pressures on consumers [1][2]. Group 2: iPhone Sales and Future Projections - The strong sales of the iPhone 17 are attributed to many consumers upgrading from older devices that are four to five years old, which may also positively influence the iPhone 18 cycle [1]. - Despite the anticipated price pressures, there is a belief that the iPhone 18 cycle will still see some benefits from the current upgrade trend [1]. Group 3: Apple Intelligence and Market Position - The development of Apple Intelligence, particularly the anticipated Siri 2.0, is viewed as a critical factor for Apple's stock performance this year, especially given the company's two-year delay in this area [3][4]. - A partnership with Google for the Google Gemini project is expected to yield meaningful advancements in Apple Intelligence, potentially driving unit growth and service monetization [4][5]. - Overall, Apple Intelligence is considered a more significant driver for stock performance than price changes, leading to an increase in target price for the stock [5].

Investment Rating - Investment rating is maintained at "Buy" [3] Core Views - The company reported FY25Q3 revenue of $94 billion, a year-over-year increase of 9.6%, slightly above Bloomberg consensus expectations by 5.30% [6] - Operating profit reached $28.2 billion, up 11.2% year-over-year, exceeding Bloomberg consensus by 9.26% [6] - GAAP net profit was $23.4 billion, reflecting a 9.3% year-over-year increase, also above Bloomberg consensus by 9.31% [6] - Service revenue was $27.4 billion, up 13.3% year-over-year, surpassing Bloomberg expectations by 2.14% [6] - Product revenue was $66.6 billion, a year-over-year increase of 8.2%, exceeding Bloomberg expectations by 6.83% [6] - iPhone revenue was $44.6 billion, up 13.5% year-over-year, higher than Bloomberg expectations by 11.29% [6] - The Greater China region saw a revenue increase of 4.35% year-over-year, marking the first positive growth in two years, driven by national subsidy policies and promotional activities [6][7] - The company anticipates revenue growth of $416.5 billion, $438.1 billion, and $464.3 billion for FY2025, FY2026, and FY2027 respectively, with year-over-year growth rates of 6.5%, 5.2%, and 6.0% [9] Summary by Sections Financial Performance - FY25Q3 revenue was $94 billion, operating profit was $28.2 billion, and GAAP net profit was $23.4 billion, all exceeding expectations [6] - Service revenue reached $27.4 billion, while product revenue was $66.6 billion, with notable performance in iPhone and Mac sales [6][7] Regional Performance - The Greater China region achieved a revenue of $15.4 billion, marking a 4.35% increase year-over-year, attributed to national subsidies and promotional sales [6][7] - Other regions, including the US, Europe, Japan, and Asia-Pacific, also showed positive growth trends [6] Product Insights - Mac revenue increased by 15% year-over-year, driven by new M4 chip products [7] - iPad revenue declined by 8.1% year-over-year due to high base effects from the previous year [7] - Service business revenue reached a record high, with significant growth in Apple TV+ viewership and Apple Store revenue [7] Future Outlook - The company plans to launch the iPhone 17 series in September, with a focus on new product features [8] - Attention is drawn to the progress of Apple intelligence and the Google antitrust case, which may impact service revenue and overall profits [8][9]