Apple (AAPL) is a technology company best known for its cutting-edge innovation, creating category-defining products like the iPhone, Apple Watch, and AirPods. The company also provides subscription-based streaming services such as Apple Music, Apple Arcade, Apple TV, Apple Fitness+, Apple Pay, and more.

Apple stock experienced a significant decline in early April as global markets reacted to President Donald Trump’s “reciprocal” tariffs, but it has since rebounded. Over the past five days, Apple shares have gained 11.6%, showcasing a strong recovery. 

Despite this, the stock remains 22% below its 52-week high. 

Impact of Tariffs on Apple

Apple’s stock faced a major shakedown along with the broader market as investors reacted to Trump’s tariffs. Most of Apple’s iPhones are produced in China, leading to Apple facing significant tariff exposure. Analysts were calling for the consumer electronics giant to face massive supply chain disruption, as Trump raised taxes on Chinese imports to a staggering 145%. 

Wedbush analyst Dan Ives, a longtime Apple bull, has called the tariffs a “complete disaster” for compaies like Apple and Tesla (TSLA) while slashing his price target for the iPhone company from $325 to $250, reflecting upside potential of just 25% from market levels. To maintain margins under such a tariff regime, the company might be forced to increase its iPhone prices. This could alienate customers. The idea of Apple manufacturing iPhones in the U.S. does not seem feasible due to higher costs.

On April 12, Apple did get some reprieve. Trump announced that he would temporarily exempt certain consumer electronics, like smartphones, from the tariffs on China. Instead of facing 145% import duties, these products will temporarily face a 20% burden. This has caused the recent recovery in AAPL shares. 

Apple Outperforms Expectations in Q1

Apple announced its first-quarter 2025 results on Jan. 30, reporting a profit of $36.33 billion, which translates to $2.40 per share. This exceeded Wall Street's expectations for earnings of $2.36 per share. The company’s revenue for the quarter amounted to $124.3 billion, marking 4% year-over-year growth and narrowly surpassing analysts’ estimate of $124 billion.

While Apple’s product revenue totaled $97.96 billion — falling short of Wall Street’s $98.13 billion projection — its services revenue exceeded forecasts, reaching $26.34 billion compared to analysts’ estimate of $26.06 billion. The services segment recorded impressive growth of 13.93% compared to Q1 2024.

Apple’s operating profit stood at $42.83 billion for the quarter, slightly above analysts’ estimate of $42.57 billion, while its operating margin remained steady at 34.5%, unchanged from the prior year.

Analysts forecast 4% revenue growth for this fiscal year, followed by 7.2% growth next year, driven by the adoption of Apple Intelligence. This optimism is bolstered by the 1.6% year-over-year growth in product sales in Q1 2025, which contrasts with a 1.9% annualized decline over the previous two years. The increased frequency of device upgrades by customers signals potential growth, with Apple’s iOS 18 and Apple Intelligence poised to act as catalysts for further success. 

Analyst Ratings on AAPL Stock 

Analysts remain bullish on the tech giant. Apple has a consensus “Moderate Buy” rating from analysts with a mean price target of $244.11, indicating upside potential of roughly 21% from current market levels. 

With 36 analysts covering the stock, 18 give it “Strong Buy” ratings, four “Moderate Buy” ratings, 11 “Hold” ratings, and three “Strong Sell” ratings.