Apple Inc.

Overview

An investment analysis of Apple Inc. (AAPL) through the lens of William J. O’Neil’s CAN SLIM framework, using the latest structured financials and corroborating sources to assess quality, growth, technicals, risks, and a practical rating for investors.

Financial and Business Overview

Apple is a scale consumer technology and services platform driven by iPhone, Mac, iPad, Wearables and a high‑margin Services engine. FY2025 results (10‑K): total net sales $416.2B (+6% y/y), with iPhone $209.6B (+4%), Services $109.2B (+14%), Mac $33.7B (+12%), iPad $28.0B (+5%), and Wearables/Accessories $35.7B (−4%). Company gross margin rose to 46.9% (Products 36.8%, Services 75.4%). Operating discipline persisted despite tariff headwinds. Apple generated significant cash, ended FY2025 with $132.4B in cash and marketable securities, and has notes outstanding of $91.3B plus $8.0B in commercial paper (ample liquidity versus obligations). Capital return remained aggressive: $89.3B buybacks in FY2025 and an annualized dividend of ~$1.04/share (quarterly $0.26), with an intention to raise annually. As of the latest quote set (Dec 2025), shares trade at $283.1, market cap ~$4.20T, trailing P/E ~37.9x and forward P/E ~34.1x, P/B ~56.7x, dividend yield ~0.37%. The Services mix expansion and record gross margins (47.2% in September quarter) underline improving quality of earnings and durability.

Market Position & Competitive Advantages

Apple’s economic moat is underpinned by a powerful integrated ecosystem (hardware + OS + Services), brand strength, custom silicon, and switching costs. Morningstar rates the moat as Wide with a fair value of $240, noting valuation is challenging at current levels. Strategically, Apple Intelligence (privacy‑centric AI), the iPhone 17 family, and sustained Services momentum support multi‑year engagement and monetization. Competitive intensity remains high: Samsung, Huawei/Xiaomi (smartphones), Microsoft/PC OEMs (PCs), Google (ecosystem/services/AI), and Spotify/Netflix et al. (services). China is a two‑sided factor: important market with recent softness (Greater China −4% y/y in Sep quarter) but also a key manufacturing node under tariff and geopolitical pressure. Apple is diversifying supply chains (India, Vietnam) and investing in U.S. capacity. Advantages: brand loyalty, 2B+ device installed base, Services mix with 75%+ gross margins, strong balance sheet and buybacks. Key risks to the edge: regulatory (EU DMA, U.S. DOJ app store cases) potentially altering Services economics; tariff cost absorption; perceived AI speed vs. rivals; and iPhone revenue concentration.

Stock Performance

Technically and tactically strong. Price: $283.1, within 0.1% of 52‑week high ($283.42) and +67% above the 52‑week low ($169.21). The stock is above its 50‑day ($263.39; +7.5%) and 200‑day ($227.4; +24.5%) moving averages—hallmarks of leadership in O’Neil’s method. 3‑month average daily volume ~51.5M shares (10‑day ~44.9M). Over the last 12 months, AAPL returned ~18.3%, outpacing the S&P 500’s ~12.3% (Finimize). Near‑term fundamentals matched strong technicals: the September quarter beat EPS ($1.85 vs $1.77) and revenue ($102.47B vs $102.24B) with guidance for December quarter revenue up 10–12% y/y and iPhone revenue double‑digit, while Services hit an all‑time high.

CAN SLIM Analysis

Conclusion

From a CAN SLIM perspective, Apple checks N, S, L, I, M convincingly and shows improving C with firm guidance; A is modest versus classic growth leaders. Technically, shares are near new highs and above key MAs—buyable for pure O’Neil momentum traders on valid breakouts with tight risk controls. For broader investors, valuation (forward P/E ~34x) is rich relative to mid‑single‑digit EPS growth and a $240 FVE anchor, arguing for a HOLD and adds on constructive pullbacks (toward the 50‑day) or on a fresh, high‑volume breakout if December/March results confirm double‑digit growth with 47–48% GM and sustained Services momentum.