Apple Closes in on $5 Trillion Valuation with iPhone Duo Driving Earnings Momentum

Apple shares have been on an upward trajectory lately, reaching an all-time intraday high of $345.34 on Tuesday before closing at $339.75.

This milestone has pushed Apple's market capitalization to approximately $4.96 trillion, bringing it close to the $5 trillion threshold once again.

Nvidia remains the only company to have closed a trading session above this mark, but Apple's shares are up 25% this year, outperforming the Roundhill Magnificent Seven ETF and the S&P 500.

The recent rally has accelerated since Apple's September product launch, with the company's shares gaining 7.2% since the beginning of the month.

Investors are now looking beyond the immediate reaction to the new products and assessing whether the iPhone 18 cycle can sustain Apple's earnings momentum.

The introduction of the iPhone Duo, a foldable smartphone, is seen as a significant development in Apple's product lineup, potentially creating a new premium category for the company.

Analysts are optimistic about the Duo's prospects, with Bank of America's Wamsi Mohan and JPMorgan's Samik Chatterjee expecting Apple to maintain a positive volume cycle despite higher prices.

Citi has described the Duo as 'Apple's biggest new hardware category since the watch and AirPods', while Evercore ISI's Amit Daryanani believes early sales will be constrained by production rather than consumer appetite.

Deepwater Asset Management's Gene Munster estimates that if the iPhone 18 cycle generates $9.5 billion in additional revenue, it could translate to around 7 million units sold next year.