Core Insights - Apple has introduced a redesigned Blood Oxygen feature for Apple Watch Series 9, Series 10, and Apple Watch Ultra 2 through software updates, which is expected to enhance user engagement and adoption of these devices [1][9]. Product Features and Sales Performance - The Apple Watch models now include various health and wellness features such as irregular rhythm notifications, ECG app, sleep apnea notifications, fall detection, and more, which are anticipated to drive sales in the Wearables, Home, and Accessories segment [2]. - Sales in the Wearables, Home, and Accessories category decreased by 8.6% year over year to $7.4 billion, representing 7.9% of net sales in Q3 fiscal 2025, although this figure exceeded consensus estimates by 0.85% [3][9]. - The Zacks Consensus Estimate for sales in this category for fiscal 2025 is projected at $8.32 billion, indicating an 8% decline compared to the previous year [3]. Competitive Landscape - Apple faces significant competition in the wearables market from companies like Alphabet and Garmin, which are enhancing their health features to attract consumers [4][9]. - Garmin's Venu and vivoactive smartwatch series are gaining popularity due to new health features, with expectations of over 25% growth in fitness revenues for 2025 [5]. - Alphabet's Gemini AI assistant is now available on Wear OS watches, and Google has received FDA clearance for health features on its Pixel Watch, further intensifying competition [6]. Stock Performance and Valuation - Apple shares have declined by 7.8% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 13.9% [7]. - The stock is currently trading at a forward 12-month Price/Earnings ratio of 29.75X, compared to the sector's 28.19X, indicating a premium valuation [11]. - The Zacks Consensus Estimate for fiscal 2025 earnings is $7.33 per share, reflecting a 3.2% increase over the past 30 days and suggesting an 8.6% year-over-year growth [13].