Apple has reported a record $144bn quarter, driven by strong iPhone sales. The company’s revenue was up approximately 8% year-over-year, with iPhone revenue accounting for around 50% of the total. Despite the strong results, the stock price experienced a 10% intraday drop due to the earnings surprise and profit-margin scrutiny. However, long-term growth prospects remain strong, driven by sustained iPhone demand, services expansion, and modest cap-ex investments. The company’s services ecosystem, which includes a 70%+ margin, is expected to add high-margin, recurring cash flow, supporting a $2-3bn uplift to market cap. Apple’s valuation multiples are expected to compress to 25-27×, translating to a 15-20% price appreciation over the next 2-3 years.

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