Apple Launches iPhone 17e to Sustain Growth Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy AAPL?
Source: Fool
- Record Sales Performance: Apple's iPhone revenue surged 23% year-over-year in fiscal Q1 2025 to $85.3 billion, accounting for 59% of total revenue, reflecting strong market demand and brand influence.
- New Pricing Strategy: The iPhone 17e starts at $599 with 256GB storage, effectively doubling the entry storage of the iPhone 16e at the same price, aimed at attracting a broader consumer base and driving sales growth.
- Ecosystem Advantage: The iPhone serves not only as a revenue generator but also as a gateway into Apple's high-margin service ecosystem, with an active device base exceeding 2.5 billion, contributing to a 14% year-over-year increase in services revenue to $30 billion in Q1.
- Future Growth Outlook: Apple anticipates that its revenue growth guidance for Q2 2025 will be constrained by iPhone supply rather than demand, and the launch of the iPhone 17e will further solidify its market position, attracting both new and upgrading users to enhance overall business growth potential.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Ecosystem Expansion: With 2.5 billion active iOS devices, Apple's seamless integration of hardware and software enhances user experience and promotes high-margin cross-selling, ensuring a long-term customer base and revenue growth.
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- Ecosystem Expansion: With 2.5 billion active iOS devices, Apple's seamless integration of hardware and software enhances user experience and promotes high-margin cross-selling, ensuring a long-term customer base and revenue growth.
- Strong Financial Performance: Apple generated over $123 billion in free cash flow over the past four quarters, achieving a 68% return on invested capital, demonstrating its efficient supply chain management and profitability, which further supports stock buybacks and dividend growth.
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- Impact of Stock Splits: Apple's five stock splits have reduced the effective IPO price from $22 per share to just $0.10, significantly increasing the number of shares held by investors and reflecting the company's robust market performance.
- Market Position Consolidation: Following the launch of the iPhone in 2007, Apple successfully led the smartphone industry, becoming a cornerstone of modern technology and driving its market capitalization to $3.8 trillion, showcasing its dominance in the global market.
- Investor Mindset Shift: While Apple's success has attracted many investors, historical examples like Groupon and MySpace remind us of the importance of diversification to mitigate risks and increase the chances of holding quality stocks.
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- Investor Mindset: Despite Apple's stellar performance, investors should remain rational and diversify their portfolios to mitigate risks, as there are other companies that have failed, underscoring the importance of diversified investing.
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- Wealth of Early Investors: A $2,000 investment in Apple at its IPO would be worth over $5.18 million today, highlighting the immense potential of long-term holding and Apple's dominance in the tech industry.
- Market Leadership: Since the launch of the first iPhone in 2007, Apple has not only led the smartphone industry but also accelerated the rapid development of mobile technology, becoming one of the world's most valuable companies with a market cap of $3.8 trillion.
- Investment Strategy Reflection: Despite Apple's outstanding performance, analysts advise investors to diversify their stock holdings to mitigate risks associated with single investments, emphasizing the importance of holding a variety of stocks in the market.
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- Technological Advantage: The AGI CPU from Arm is seen as a highly efficient chip tailored for specific inference tasks, which may attract more companies to adopt it, further solidifying its position in the AI chip market.
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- Market Reaction Uncertainty: Investors attempting to predict the Fed's interest rate direction often fail, as market reactions are unpredictable; ongoing economic uncertainties can lead investors to make detrimental decisions.
- High-Quality Companies' Resilience: High-quality firms like Apple (AAPL), which had $54 billion in net cash at the end of 2025 and reported a net income of $42.1 billion in Q1 2026, demonstrate strong financial health, making them less susceptible to Fed decisions.
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