The article examines whether Apple (AAPL) can earn more profit per customer if people keep their iPhones longer. Services revenue rose 12% to $30.7 billion in the fiscal third quarter of 2026, generating roughly $76 of gross profit per $100 of revenue versus $40 for products overall. Apple trades at 36x forward P/E, and analysts project fiscal 2027 adjusted EPS of $9.59, up about 9% from the $8.83 estimate for fiscal 2026. Quarterly EPS of $2.02 included $0.11 from tariff refunds, and the article argues the premium valuation requires service spending and retention to keep growing as upgrades slow. It contrasts this with Samsung, which trades at 5x forward P/E because its earnings depend heavily on memory semiconductors.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.0T |
| Close on 10/14/2026 | 342.96 |
| Change that session | +0.50% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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