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AAPL · Thesis · ⌘2
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AAPLConsumer hardware + services · $3.2T mkt cap

Apple Inc., a Services-led re-rating in a hardware shell

Services-led re-rating; iPhone is mature, Services is the multiple expander; net-cash position absorbs cyclical risk.

Segment mix runs roughly iPhone 51% / Services 25% / Other 24%. The Services line carries ~70% gross margin against ~37% on iPhone — every percentage point of mix shift moves the consolidated EBITDA margin meaningfully. The DCF below holds iPhone units flat and lets Services compound at a measured pace.

DCF · BASE · 5Y
Metric2024A2025A2026E2027E2028E2029E
Revenue391,000.0410,000.0433,500.0459,000.0487,500.0520,000.0
growth4.9%5.7%5.9%6.2%6.7%
EBITDA margin30.0%30.5%31.0%31.4%31.8%32.0%
EBITDA117,300.0125,050.0134,385.0144,126.0155,025.0166,400.0
Capex(9,450.0)(10,000.0)(10,800.0)(11,500.0)(12,200.0)(13,000.0)
Δ NWC(1,200.0)(1,400.0)(1,600.0)(1,800.0)(2,000.0)(2,200.0)
Unlevered FCF106,650.0113,650.0121,985.0130,826.0140,825.0151,200.0
Bear
$32
−18%
Base
$47
+19%
Bull
$61
+55%
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