Apple: Booming iPhone 17 Vs. Soaring Memory Costs (Archive)
Booming iPhone 17 cycle faces mounting margin pressure from surging memory prices.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Apple Inc.’s iPhone 17 launch is driving renewed iPhone revenue growth, led by strong Pro Max adoption and market share gains in China through record upgraders and new ecosystem entrants.
- Rising memory costs are set to pressure Apple’s product gross margins from Q2 FY26 onward, although premium Pro model mix may soften the impact.
- AAPL trades near fair value, with a 1-year forward P/E above its long-term average but at a smaller premium to peers than in recent years.
- AAPL’s relative performance versus the S&P 500 has been range-bound since 2022, with technicals showing no clear directional bias.
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Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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