Hi YXI friends,

Time for an iPhone upgrade now Apple Intelligence has finally come out? I am personally planning to.

Google Pixel (and many Android phones) already has Gemini integrated, so Apple is technically very slow on the AI front. But Apple users are typically too locked in by the whole ecosystem to look elsewhere (and I am certainly guilty of this).

Apple’s share price sold off after earnings, as the management provided a conservative outlook for Q1 FY2025, while China’s growth is not getting resurrected. Moreover, Warren Buffett sold 25% of his Apple shares in the past quarter, making investors nervous too.

However, the price technicals suggest that the stock is down but not out - actually far from it.

Let’s dive into Apple’s curious case of slow fundamentals, rich valuations, but bullish price technicals to piece this puzzle together.

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Apple is half iPhone, quarter Services, and quarter Mac, iPad, and Wearables

Just under 50% of Apple’s revenue is from iPhone. Mac and iPad share 15% of the revenue together. 10% revenue comes from wearables and accessories. The remaining quarter comes from Services.

45% of Apple’s sales comes from Americas, while Europe accounts of 25%.

China, where iPhones have been struggling due to both government pushback and affordability in a recessionary environment, is a significant 17% of total sales.

2. Quarterly Revenue Grew Second Quarter In A Row.

Subscribe to YX Premium to read the rest.