Apple: The actual surge in profits will come in 2025.

Last Updated: 20. Februar 2024By

I have to admit: I am not objective when it comes to Apple. I have been using Mac devices exclusively in the media industry for 30 years, and I have no plans to switch. This also applies to my iPhone. The American technology company, which ushered in the era of smartphones, has now released the Vision Pro. How much potential does the stock still offer?

Apple profit increases by 16% In the first quarter, Apple reported a profit of $2.18 per share, an increase of over 16% from the previous year. Analysts had expected $2.11 per share. Revenue was $119.58 billion, compared to $117.15 billion in the previous year. Analysts had expected $118.26 billion.

iPhone still the flagship of the company Revenue from the iPhone increased from $65.78 billion in the fourth quarter of 2022 to $69.7 billion. Mac revenue also increased from $7.74 billion to $7.78 billion, while iPad revenue decreased by 25% to $7 billion.

Vision Pro: An alternative to traditional screens The new headset, which seamlessly integrates digital content into the real world, could revolutionize the use of televisions and computers at home and in the workplace. With custom computer chips and advanced displays that are lacking in competitors, analysts believe that the Vision Pro could be a serious alternative to traditional two-dimensional screens.

Analysts overwhelmingly positive Conclusion: As you can see from the chart, Apple’s stock has not moved much this year despite the good quarterly results. Analysts, on the other hand, are much more positive. 26 out of 43 analysts recommend buying, 13 recommend holding, and 5 analysts want to sell. The average analyst target price is just under $200, with the highest at $250. With a P/E ratio of 27, Apple is not cheap anymore. But their products never were. However, a real surge in profits is expected in 2025, which would bring the P/E ratio down to 25.