Key Takeaways:

• iPhone Dominates but Faces Pressure: Apple’s iPhone remains its revenue cornerstone, but declining sales raises concerns due to competition and lack of major design updates.

• Smart Home and AI: New ventures like smart home devices and Apple Intelligence offer growth opportunities, but high pricing and delayed adoption limit near-term impact.

• Stock Valuation and Risks: Apple’s current stock price reflects market optimism, but risks in China and AI development may limit its fair value to a range of $167–$264.

Apple's success depends on creating new and innovative products, with updates to both hardware and software helping the company grow—hardware being the most important part. However, Apple hasn’t made major design changes in years, which could make consumers lose interest. At the same time, its high prices are facing resistance in competitive markets. Even though the iPhone makes up 50% of Apple’s total revenue, the company is expanding into smart home devices and artificial intelligence (AI) to keep growing despite these challenges....