Apple's Dip Below $310 Attracts Long-Term Investors

Apple's stock price has dropped to around $308 after a 7% decline since its Q3 earnings announcement. This dip is seen as an attractive opportunity for long-term investors, despite the broader market rising.

The Services segment of Apple's business generates over $30 billion in revenue each quarter at a gross margin of 76.7%. The iPhone 17 cycle and Services expansion are key drivers of growth, with Tim Cook describing the June quarter as the 'strongest ever'.

However, bears argue that Apple's valuation is high, trading at 36 times earnings for mid-teens revenue growth. Greater China remains a risk factor, as revenue there declined to $18.82 billion in Q3 from $25.53 billion in Q1 FY26.

The bull case sees Apple reaching $379, while the bear scenario barely reaches $314. The setup still argues against sitting out, with Apple trading near its 50-day moving average and above its 200-day average.