By now, investors are used to seeing Apple soaring to new heights with consistently strong revenue. But things have recently taken a turn. Apple (AAPL) stock dipped nearly 5% earlier this month. The drop didn’t come without warning. Some analysts have been predicting that Apple would take a hit in light of President Donald Trump and his administration’s planned tariffs, which affect China, where the majority of Apple products are manufactured.
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Despite the blow, Apple is still a robust company, and analysts are advising investors not to bail on its stock despite disappointing earnings. As of Feb. 4, AAPL is trading at $232.80 — up by over 2%. Will it go higher this year? How high could it go?
Apple has performed astronomically well for investors over the past few decades. Early investors who may not have had much money to begin with may be millionaires today solely because of their investments in the tech giant.
“If you invested $1,000 in Apple when it went public more than 40 years ago it would be worth more than $2.3 million today,” said Rick Munarriz, contributing analyst at The Motley Fool. “Zoom in a bit, and the shares have nearly tripled over the past five years. It’s never a straight line up, but Apple has beaten the market for patient investors over long stretches of time.”
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Apple has long been somewhat predictable for investors, who generally believe in the company because of its inimitable technology — chiefly iOS. Consistently, for years, Apple was seeing double-digit revenue growth thanks primarily to its steady improvements of its bestselling product, the iPhone. But now, it’s not looking like the iPhone is packing as big of a punch as it used to. The days of double digit growth are, at least at present, over.
“That streak ended in 2024 when it clocked in with its third consecutive year of single digit growth,” Munarriz said. “The AI features of the new iPhone didn’t resonate with consumers — at least not yet — and the $3,500 Apple Vision Pro extended reality headset didn’t sell well because it’s too expensive.”
Additionally, Apple recently scrapped developments of the augmented reality glasses it was long hyping up, making for another blow to its potential. The pressure is now back on the performance of the iPhone.
