Apple’s Market Cap Creeps Toward $4 Trillion as iPhone 17 Flexes (Without Flipping)

It’s Apple season, and not just in upstate New York. Apple shares climbed Monday after Counterpoint data found the iPhone 17 lineup outsold the iPhone 16 by 14% in the US and China in its first 10 days. The new iPhone went on sale last month, and CEO Tim Cook visited China last week to promote its debut (and get a custom Labubu, of course).

Apple’s shares closed yesterday at their first record high of the year. The iPhone-maker’s market cap climbed above $3.9 billion, making it the world’s second-most valuable company (only AI giant Nvidia ranks higher) and putting it on a path to become the third company to pass the $4 trillion mark.

Time for an Upgrade

It’s sweet news for a company that’s had a rotten year, with rising concerns over AI-related delays and tariffs, especially in China and India, where it makes most of its products. Investor appetite started to grow in August, when Apple promised to invest $100 billion in US manufacturing. Now, hype’s building on hopes that Apple’s new iPhone will be on everyone’s holiday wish list, both in the US and China:

• Sales of Apple’s smartphones, which make up more than half of the tech giant’s annual revenue, dipped 2% in the 2023 fiscal year and stayed flat last year. While some analysts say sales are picking up now because consumers like the iPhone 17’s new features, others say it’s simply time for an upgrade since many users bought their last iPhone during the pandemic.
• While Apple’s blue bubbles dominate chats in the US, its smartphone shipments are second to Vivo in China, according to IDC data for the third quarter released last week. It’s a tight race between the top four, too, unlike in the US, where Apple holds the majority of market share.

Harvest Time: Apple is expected to release its earnings through the end of September on October 30, which means its next report will include the first few weeks of iPhone 17 sales. Though Apple no longer discloses the number of products it sells, investors will be eyeing its revenue for signs the iPhone is flying off shelves. This could be just the beginning of Apple’s hot streak, with Visible Alpha data predicting iPhone sales will grow 4% this fiscal year and nearly 5% in 2026. Or not: Jefferies recently downgraded Apple shares, citing “excessive expectations” for the iPhone 17.