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Is the Oracle of Omaha onto something, or are his recent Apple stock transactions misguided?
Heres what you shouldconsider before deciding if you should sell Apple or hold onto your shares.
The main issue is that Apple makes roughly half of its revenue from the iPhone.
iPhone revenue grew by 5.5% year-over-year.
It would come at a good time, and investors are starting to see that come to fruition.
AI features have boosted demand for the new iPhone.
Full-year iPhone sales are up by less than 1% year-over-year.
Results from quarter three of 2024 represent ameaningful growth accelerationfrom the full fiscal year.
Artificial intelligence isnt only going to help the iPhone.
Apple Services is the companys fastest-growing segment, and it stands to benefit nicely from AI features.
Apple Has Immense Brand Loyalty
Apple isnt just a company that sells hardware.
Its developed a loyal fanbase of consumers who regularly buy Apple products.
Apple products have become status symbols, similar to Louis Vuitton handbags.
Customers have also been conditioned to view Apple as an innovative company that offerstop-tier products and services.
This key in of loyalty gives Apple more leeway when it makes mistakes.
The company can also generate more excitement when it releases innovative products and features.
Apple Services gives the company an opportunity to tap into brand loyalty and increase the average value per customer.
Investors with higher risk tolerances who want to outperform the stock market should consider other growth stocks.
However, recent revenue growth rates suggest that there are better days ahead.
Apple isnt dead money at this stage, and it can still deliver annualized double-digit returns for investors.
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