Apple, with a market capitalization of approximately $4,000 billion, is among the group of largest publicly traded companies in the world. As such, the company remains a heavyweight within the global technology sector and an important position in many investment portfolios. Following the recent quarterly results and further increased revenue expectations, it is time to reassess the share price development. The combination of strong operational performance, a growing services model and strategic investments in AI raises the question of whether Apple is preparing for a next upward phase, or must first undergo a correction.

In our previous article on Apple, we indicated that the company seemed to be losing ground in the AI race at the time. Meanwhile, against our previous expectations, Apple has clearly managed to recover and strengthen its position.

You can read our previous article back here: Apple chasing Nokia? Quick action required!

What are the developments at Apple?

Apple released the results for the first quarter of its fiscal year 2026 on 29 January 2026. The figures were strong. Revenue came in at $143.8 billion, an increase of 16 percent compared to last year. Margins remained solid, partly due to continued growth in the services division, which includes Apple Music, iCloud, the App Store and Apple Pay.

The services division now represents more than a quarter of total revenue and contributes relatively even more strongly to profitability. This confirms Apple’s shift toward a model with more recurring revenue and less dependence on hardware sales.

iPhone revenue remained stable, while Mac and iPad sales were slightly volatile. Investors are primarily focused on demand developments in China and the further integration of AI functionalities into new product generations.

At the same time, a broader dynamic is unfolding within the technology sector. Many large technology companies are under pressure due to substantial investments in artificial intelligence. Companies such as Amazon, Google and Microsoft are in a phase in which these investments must now translate into profitable growth. Apple, by contrast, has taken a relatively cautious stance in the AI race. As a result, the share initially lagged somewhat during the AI hype. Now that the market is increasingly critical regarding returns on investment, this more moderate strategy appears to be working in Apple’s favor. This sentiment is visible in the share price performance of recent weeks.

What is the view of analysts on Apple’s share price?

Analysts remain mostly positive about the outlook for Apple Inc., despite the recent volatility in the technology sector. The average price target for the coming twelve months is around $290 to $300, implying that most analysts still see upside potential from the current price level. In optimistic scenarios, price targets of up to approximately $350 are mentioned, primarily based on further growth in the services division and successful integration of AI within the product offering.

What is Yelza's view on Apple's share price?

Based on the technical picture, Apple is currently trading near its previous record high. We expect that there is still room in the short term for a further rise towards $305, after which a healthy correction is likely. This corrective phase may extend in the following months towards the zone around $235. This level serves as important technical support and is expected to mark the end of the correction.

From that support area, we expect Apple to resume its upward trend. After completion of the corrective phase in the zone around $235, we foresee room for a new rise towards our long term price target of $355. During the decline towards $235, it may be considered to build a position gradually with a view to this longer term scenario.

Below you will find Apple’s price chart from the beginning of 2022. The arrows indicate the most likely scenario.

Conclusion

Apple shows a fundamentally solid picture, with strong revenue growth, robust margins and an increasingly important services division providing stable, recurring revenue. Analysts remain predominantly positive about the long term potential. We partly share this view, but expect a healthy correction first before room arises for a new sustainable rise.

We currently expect that there is still room for a further rise towards $305. After reaching that level, we foresee a corrective phase, in which the zone around $235 may be considered as an opportunity to include the share in the portfolio. From that support area, room then arises for a new upward movement towards our long term price target of $355.

Apple’s next quarterly results will be published on 28 April.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.