Apple's Bold 2025 Vision: Can 20 New Products and AI Innovations Reignite Growth?
2min read As of last week, Apple (AAPL) shares fell by 0.20%, marking a five-day losing streak and a 6.05% decline over the past five days. The stock dropped 4.79% over the past week and 2.82% year-to-date, with a market capitalization of $3.6785 trillion.
Recently, Apple has been making headlines with plans to release up to 20 products by 2025, including a new MacBook Air expected as early as this month, while continuing to rely on service revenue for growth. Although the latest iPhone could once again be a bestseller for the tech giant, Apple is set to launch an array of new hardware products throughout the year.
Analyst Jonathan Weber notes that the iPhone 17 will be the most important product release by 2025, but the company is also likely to introduce new iterations of the Apple Watch, laptops, and possibly the next-generation Vision Pro. Meanwhile, enhanced services revenue will likely continue to be a significant growth driver, as it has been over recent years.
Reports indicate that new MacBook Air models equipped with M4 chips might be launched this month, preceding the release of new iPad models expected in March. More exciting developments are anticipated, including a smart home display product codenamed "Command Center" and AirTag 2, projected for mid-2025 release, featuring advanced wireless chips and enhanced speakers.
Later in the year, possibly in September, consumers may look forward to the release of the iPhone 17 Pro and Pro Max, AirPods Pro 3, and subsequent generations of the Apple Watch. Prospective MacBook Pro and iPad Pro releases equipped with M5 chips could bolster AI capabilities in Apple's devices.
Despite innovations like the AirTag and Vision Pro likely not being financial game-changers, these products may strengthen Apple's brand, indirectly supporting service revenue growth, according to Julian Lin of Best of Breed growth Stocks investment group.
Meanwhile, Apple ended 2024 near historic highs, despite criticism over product anticipation. Over recent years, Apple failed to meet meaningful growth expectations, with Stone Fox Capital remaining skeptical regarding Apple's growth drive. Surveys find high expectations for AI features among users, yet satisfaction remains low, warranting tighter AI integration.
Apple has since integrated new GAI features like Genmoji in iOS 18.2, but these developments have not significantly enhanced consumer purchasing incentives. The incorporation of OpenAI's ChatGPT into iOS shows potential, yet users demand direct access and convenience which Apple aims to achieve by 2025.
Despite setbacks, Wedbush Securities suggests retailers should set higher price targets, with goals nearing $325—entailing nearly $5 trillion in market valuation. Apple’s sustained high valuations are linked to AI optimism, necessitating innovative offerings beyond AI to maintain investor enthusiasm.
The Apple Vision Pro continues to underwhelm, capturing just 5% of the VR/MR market. Apple's legal conflict with Google over the integration of search engines could impact its revenue; in 2024, it gained $200 billion from Google as a default browser preference in Safari.
Amid these challenges, Apple's P/E ratio remains robust at 34 times FY25 estimates, placing it above competitors like Microsoft. Yet, Apple's growth projections pale compared to peers, necessitating strategic innovations.
In another update, Apple unveiled enhancements to its Fitness+ streaming service, featuring workout modules in partnership with Strava, available on compatible devices starting January 6. This diversification signifies Apple’s commitment to supporting personalized and motivational fitness journeys for users worldwide.
