Apple Nears $4 Trillion Valuation as iPhone 17 Demand Soars
Apple’s stock surged to record highs on October 20, bringing the tech giant within striking distance of a historic $4 trillion market valuation. Strong early sales data for the new iPhone 17 series has fueled investor optimism about the company’s growth prospects.
Key Takeaways
- Apple shares jumped 4.2% to $262.90, reaching $3.9 trillion market cap
- iPhone 17 sales outperformed iPhone 16 by 14% in early US and China markets
- Stock added to Evercore ISI’s Tactical Outperform List
Strong iPhone 17 Performance
Research firm Counterpoint reported the iPhone 17 series significantly outperformed its predecessor during the first 10 days of availability in both China and the United States. The newer models outsold the iPhone 16 series by 14%, indicating robust consumer demand despite global economic uncertainties.
Evercore ISI analysts noted in their research: “The recent launch of online orders in China may be a positive tailwind for the Dec-qtr, as initial delivery time data reflects stronger initial demand relative to other regions at launch.”
Market Position and Analyst Confidence
With the recent surge, Apple now ranks as the world’s second most valuable company, trailing only AI-chip giant Nvidia. The weekend before the rally, Evercore ISI added Apple to its Tactical Outperform List, anticipating the company will exceed market expectations for the current quarter and provide strong guidance for the December period.
Art Hogan, chief market strategist at B Riley Wealth, commented: “They rolled out the latest version of their iPhone and it’s doing much better than anticipated … the demand trends for the company’s iPhones are now on the front foot.”
Overcoming Earlier Challenges
Apple shares had faced pressure earlier this year due to intense competition in China and concerns about how the company would navigate high US tariffs affecting its major manufacturing hubs in China and India.
However, the stock began recovering in early August after Apple committed to $100 billion in additional US investment, a strategic move that could help mitigate potential tariff impacts.
The stock is poised for its largest single-day gain in four weeks if current levels hold, putting Apple on track for more than 5% year-to-date growth. Investors await the company’s quarterly earnings report scheduled for October 30.
