According to preliminary data from Counterpoint Research, the global smartphone market expanded 3% year-over-year in the first quarter of 2025. Growth in China, powered by government subsidies and recovery in emerging markets across Latin America, Asia-Pacific, and the Middle East and Africa, offset declines in developed markets.

Notably, Apple secured the top position with the help of its iPhone 16e launch and strong performance in non-core markets, despite challenges in the U.S., Europe, and China. The iPhone maker saw double-digit growth in Japan, India, and Southeast Asia.

Chinese brands showed significant momentum, with Xiaomi gaining market share through expansion into new territories and domestic growth tied to its successful electric vehicle launch. Vivo claimed the fourth position, while OPPO rounded out the top five with strong performance in India, Latin America, and Europe.

While Apple led the smartphone market in Q1, is AAPL stock a good buy right now? 

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Can Apple Stock Deliver Outsized Gains in 2025?

Apple reported record revenue of $124.3 billion in the December quarter, up 4% year-over-year, with earnings per share touching an all-time high of $2.40. CEO Tim Cook highlighted that markets where Apple Intelligence was available showed stronger iPhone 16 sales compared to regions where the AI features hadn’t yet launched, providing early evidence that the company’s AI strategy is driving consumer interest.

“Apple Intelligence builds on years of innovations we’ve made across hardware and software to transform how users experience our products,” Cook told analysts, noting that features like writing tools, image generation, and photo cleanup were seeing strong adoption.

Services revenue hit an all-time high of $26.3 billion, growing 14% year-over-year, continuing to be a bright spot for the hardware heavyweight. Moreover, the installed base of Apple devices reached a record 2.35 billion active devices globally.

Mac and iPad sales both showed impressive growth, up 16% and 15%, respectively. Cook attributed Mac’s performance to the strong uptake of new M4-powered devices. “We believe we’ve got the best AI PC out there for running workloads,” Cook stated.

China remains a challenge, with revenue down 11% year-over-year, though executives noted that over half of that decline was due to channel inventory changes. Looking ahead, Apple expects low- to mid-single-digit revenue growth for the March quarter despite a 2.5% headwind from foreign exchange rates. 

Is AAPL Stock Undervalued?

AAPL stock, valued at a market cap of $2.9 trillion, is down nearly 25% from all-time highs. The tech stock recently entered bear market territory following trade war escalations. Despite the ongoing pullback, Apple trades at a forward price-earnings multiple of 28.15x, which is lofty, given its adjusted earnings are forecast to rise by 12.6% annually in the next five years. Comparatively, in the last five years, AAPL stock traded at an average forward earnings multiple of 27.8x while its earnings growth was higher at 17.8%. 

Wall Street expects Apple to report adjusted earnings of $12.22 per share for fiscal 2029 (ending in September). If AAPL stock is priced at 30x trailing earnings, it might trade around $365 per share in early 2030, up from its current price of $194. 

Out of the 36 analysts covering AAPL stock, 18 recommend “Strong Buy,” four recommend “Moderate Buy,” 12 recommend “Hold,” and two recommend “Strong Sell.” The average target price for Apple stock is $240.97.

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