iPhone 17 demand lifts Apple near $4 trillion valuation

WEB DESK: Apple became the third tech giant in history to briefly cross the $4 trillion market value mark on Tuesday, powered by stronger-than-expected demand for its latest iPhone line-up. The milestone shows renewed investor confidence in the tech giant after months of doubts over its slower pace in artificial intelligence development.

Apple’s stock rose to an intraday high of $269.89, valuing the company at just over $4.005 trillion before easing back to close at $3.992 trillion, up 0.1 per cent for the day. Despite the slight pullback, the feat marked a symbolic comeback for the iPhone maker, whose shares have rallied nearly 13 per cent since the launch of the iPhone 17 series on September 9.

Strong iPhone sales drive momentum

Analysts said the latest models, including the iPhone 17 and the slimmer iPhone Air, have reignited global consumer interest, especially in key markets such as China and the US. Data from research firm Counterpoint showed that early sales of the iPhone 17 were 14 per cent higher than its predecessor.

“The iPhone accounts for over half of Apple’s profit and revenue. The more devices they get into people’s hands, the deeper customers move into their ecosystem,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

Apple’s rebound comes after a difficult start to the year marked by concerns over weakening demand in China, rising competition from local brands, and uncertainty around higher US tariffs on imports from Asian manufacturing hubs such as China and India. Despite those hurdles, the company appears to have absorbed the cost pressure while maintaining its pricing strategy.

Brokerage firm Evercore ISI expects the strong iPhone demand to help Apple exceed market expectations for the quarter ending in September and deliver an upbeat outlook for the holiday season.

Lagging in the AI race

Apple’s success in hardware contrasts with the cautious pace of its artificial intelligence plans, an area where rivals Microsoft, Nvidia, and Meta have surged ahead. Reports suggest Apple has lost several senior AI executives to Meta in recent months.

The company has yet to fully roll out its Apple Intelligence suite, including a ChatGPT-powered Siri upgrade that has now been delayed until next year. It is reportedly exploring partnerships with leading AI firms such as Google’s Gemini, Anthropic, and OpenAI to strengthen its AI capabilities.

“The lack of a clear artificial intelligence roadmap remains an overhang for Apple’s stock,” Zaccarelli said. “If they manage to integrate AI in a way that excites consumers and investors, it could completely change the company’s trajectory.”

Market rivals

Apple joins Nvidia and Microsoft in the $4 trillion club, though Nvidia continues to lead with a market value close to $5 trillion. Despite Apple’s massive size, its shares have gained only 7 per cent so far this year, trailing behind the Nasdaq 100’s 23 per cent rise.

The company reported one of its strongest quarters in years between April and June, posting double-digit growth across major business segments. It is set to announce its fourth-quarter results on October 30, a key moment that could determine whether its momentum continues into the year-end rally.