Apple Achieves $4T Market Value Milestone as Hardware Sales Overshadow Lagging AI Ambitions

Silicon Valley’s smartphone king just reclaimed its throne in the valuation race. AppleAAPL

crossed the $4T market cap mark this week, becoming the third publicly traded company to reach that milestone after NvidiaNVDA

and MicrosoftMSFT

beat it there earlier in 2025. The resurgence marks a sharp turnaround from April’s slump, when tariff pressures and domestic manufacturing demands weighed heavily on the stock.

• The company’s services unit is set to top $108B in annual revenue, doubling its size in five years and representing roughly a quarter of total sales but potentially half of profits.
• Wedbush’s Dan Ives said Apple has “finally found success with iPhone 17 and now the Street awaits for the grand strategic AI roadmap to be unveiled.”

Legal hurdles ahead: While hardware continues to drive Apple’s valuation, its high-margin services arm faces growing regulatory heat. A UK tribunal found Apple abused its “near absolute market power” in iOS app distribution, while the US Justice Department pursues an antitrust case over its App Store fees and payment restrictions. Despite these headwinds, analysts still expect services to soar to $175B and make up 30% of revenue by decade’s end.