Apple’s Stock (AAPL) Eyeing Breakout as Markets Take Breather for Thanksgiving

Apple Inc. (AAPL) stock is nearing new highs as markets pause for the Thanksgiving holiday, fueled by projections that the tech giant will surpass Samsung in smartphone shipments in 2025. The stock's recent performance suggests a bullish sentiment, with markets eyeing a potential breakout.

Apple shares finished after-hours trading at $277.90, extending their five-day advance to 3.35%. This price action reflects the market's anticipation of Apple's future performance, spurred by recent positive reports and strategic initiatives.

Counterpoint Research indicates that Apple is on track to ship approximately 243 million iPhone units in 2025, exceeding Samsung's projected 235 million shipments. This would give Apple a 19.4% share of the global smartphone market, compared to Samsung's 18.7%.

The projected shift marks a significant milestone, potentially ending Samsung's long-held dominance in smartphone shipments. The driving force behind this anticipated surge is the iPhone 17 series, which has enjoyed robust sales since its launch. Sales of the iPhone 17 series in the U.S. and China during the initial weeks post-launch outpaced those of its predecessor, the iPhone 16 series, showcasing strong consumer demand.

This increased demand is attributed to a confluence of factors, including the replacement cycle reaching its inflection point. Consumers who purchased smartphones during the COVID-19 pandemic-related boom are now entering the phase where they typically upgrade their devices. Apple's strategic investments, including a $500 billion commitment to the U.S. economy over four years, further bolster confidence in the company's long-term growth prospects.

These investments focus on manufacturing facilities, research and development in silicon engineering and AI, and job creation. The introduction of the “Liquid Glass” design language and expansion of the “Apple Intelligence” AI system across its platforms underscore Apple's commitment to innovation and technological advancement.

However, not all news has been positive. Apple recently implemented job cuts within its sales teams, affecting roles in enterprise, government, and academic sectors. Though the company framed these changes as a means to enhance customer engagement, with affected employees encouraged to apply for other positions within Apple, the move has introduced a degree of caution among the markets.

Looking ahead, Apple's focus on AI and domestic manufacturing is viewed positively by analysts, who anticipate continued growth. Samsung, on the other hand, could face challenges in the low-to-mid tier of the smartphone market from Chinese players, potentially hindering its ability to reclaim the top spot.