Apple Stock Performance: Strong Earnings and High Stakes September Event Signal Potential Growth

Market Performance and Recent Developments

Apple’s 2025 has been challenging overall, with the stock down 4% year-to-date, despite showing a modest bounce in August. However, the company’s financial position demonstrates remarkable vitality, having reported record revenue of $94 billion in Q3 2025, driven by impressive growth across multiple segments – iPhone (13.5%), Mac shipment (14.8%), and services (13.3%).

Strong Financial Performance

The company’s recent performance has exceeded Wall Street expectations, with key metrics including:
– Earnings per share: $1.57 vs. $1.43 expected
– Revenue: $94.04 billion vs. $89.53 billion expected
– iPhone revenue: $44.58 billion vs. $40.22 billion expected

Global Market Position

Apple has seen significant growth in emerging markets outside China, particularly in India, South Asia, Middle East, and Brazil, which are increasingly becoming important growth drivers and supporting the company’s diversification strategy. In the U.S., demand has remained resilient, with sell-through jumping 10% year-over-year in Q2 2025, supported by aggressive carrier promotions and a value-friendly base model. The company’s premium offerings have maintained their position, helping preserve margins.

Upcoming ‘Awe-Dropping’ Event

Apple is building anticipation for its special event, ‘Awe-Dropping,’ scheduled for September 9. While specific details are limited, expectations are high for the reveal of the new iPhone 17 series and a new Apple Watch. Unlike previous incremental iPhone updates, the 17 series is expected to deliver significant improvements. Additionally, the Apple Watch 11 is set to expand its health-related capabilities, potentially strengthening Apple’s position in the wearables market.

Future Outlook

Looking ahead, analysts project Q4 2025 revenue to reach $100.8 billion, representing a 6.2% year-over-year growth, with an expected EPS of $1.74 (6.1% year-over-year increase). However, the company faces some challenges, including supply chain pressures and tariffs expected to impact operating margins by $1.1 billion in fiscal Q4. Despite these challenges, Apple anticipates maintaining strong gross margins between 46% and 47%, demonstrating its operational discipline and ability to manage increased costs.