On Monday, the stock price soared and investors broke free from the fiercer competition from peers. $Apple (AAPL.US)$ Closing up 0.95%, the stock price rose to $239.59, hitting a new all-time high, with a total market cap surpassing $3.62 trillion, reclaiming the top spot in global market cap, approximately $200 billion higher than the second-place NVIDIA. Apple has accumulated a 25.06% increase in value so far this year.

It is worth noting that since April this year, Apple's stock price has been on a continuous rise, up over 45% from the closing low point on April 19th this year. The strong performance of Apple's stock not only reflects the company's growth momentum but also shows investors' confidence in its future development. What are the driving factors behind this upward trend?

Outstanding financial report performance. In the fourth quarter when the new generation iPhone just launched, Apple's core product, the iPhone, saw a recovery in revenue growth, exceeding Wall Street's expectations, driving the company's total revenue to reach a new high for the same period in history. The stable financial condition undoubtedly provides confidence to investors.

Technological innovation and AI strategic layout. While the core products are being updated, Apple is also continuously launching new products, from the Apple Watch to smart home products, to meet diverse consumer needs. In addition, Apple is constantly expanding in emerging technology areas such as artificial intelligence, laying a foundation for its future growth with the gradual release of Apple's AI capabilities.

Global market expansion. In the fourth quarter, Apple's sales revenue accelerated in Europe, Japan, and other Asia-Pacific regions outside China and Japan, such as India, Southeast Asia, and Africa, where the penetration rate of smartphones is low and the market potential is huge. Meanwhile, Apple is also pushing for the relocation of its industry chain, especially to emerging markets like India, to further reduce costs, expand capacity, and explore new market growth points.

Is Apple's new super product cycle coming?

As 2024 comes to an end, Apple will continue to expand its product line in 2025. Apple will launch a lineup of heavy-duty products next year, including iPhone SE, iPad, MacBook Air, and a new smart home central hub.

It is reported that the Apple iPhone SE4 will go on sale in March 2025. As Apple's entry-level model, the iPhone SE series has always been popular with users for its high cost-performance ratio and excellent performance. According to Mark Gurman, the iPhone SE 4 will be unveiled at the spring event in 2025. This new device will completely change its appearance, no longer featuring a physical Home button and Touch ID fingerprint recognition, but instead, Face ID and a notch design. The iPhone SE 4 may introduce Apple's AI feature 'Apple Intelligence' for the first time, which is expected to attract more user attention.

According to Bloomberg, Apple plans to launch its first smart home device featuring Apple Intelligence technology as early as March next year - a wall-mounted display. This device will become the 'command center' of the home, combining Apple apps, Apple Intelligence, and HomeKit integration to provide users with a more intelligent home control experience. At the same time, Apple is also exploring the development of its own smart home accessory series, including indoor security cameras that can be used as baby monitors. These new products will further enrich Apple's smart home product line, providing users with a more comprehensive and convenient smart living experience.

In addition, AirTag 2 will also be released in mid-2025. This device will be equipped with an upgraded ultra-wideband chip, offering better location tracking capabilities and potentially more tamper resistance. At the same time, the new AirTag will also have a certain level of integration with the Apple Vision Pro headgear, providing users with a richer user experience.

In the tablet product segment, iPad Air and iPad 11 will also see updates. The new iPad Air is expected to be equipped with a more powerful chip and an updated Magic Keyboard, while the iPad 11 will support Apple Intelligence. The new MacBook Air will also be released in the spring of 2025, featuring the M4 chip.

There is also news that Apple is developing a foldable iPhone, but the foldable screen market is experiencing a slowdown in growth due to reduced consumer appeal. Once the foldable iPhone is launched, it may reignite consumer interest in the foldable screen category, revitalizing the foldable screen market. Some analysts believe that Apple may launch a foldable iPhone in the first half of 2026, which could be in a compact folding form, relying on a flip to switch systems. The first foldable iPhone's screen size may range from 7.9 to 8.3 inches, folding to a smaller and more portable size.

Citi analysts maintain their buy rating and a target price of $255 for Apple. The new Apple smart features may determine the speed of iPhone replacement cycles. The firm predicts that the update cycle for the iPhone 17 will boost sales at the end of 2025 and in 2026, with sales expected to increase to 0.253 billion units from 0.227 billion units in 2024 and 0.246 billion units in 2025.

Renowned technology journalist Mark Gurman believes that he is skeptical about the rumored ultra-thin iPhone 17 Air, as he thinks this phone may face the same fate as the iPhone mini and Plus series. Apple has been seeking to introduce new models outside of the iPhone base and Pro versions to enrich its flagship phone product line. Gurman believes that the only alternative iPhone model that will sell well in the future will be a foldable model. He predicts that Apple may introduce a foldable iPhone in 2026 or 2027, which will be a major innovation for Apple in the smartphone market.

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Editor/rice