Apple Stock Price in 5 Years: AAPL Shares Have Further Room To Grow

Key Takeaways

• Despite a gradual decrease in its share of total revenue, the iPhone remains Apple’s largest revenue generator.
• Apple stock surged 30% in 2024 and has delivered a 269% return over the last five years, outpacing the broader market.
• Analysts predict double-digit earnings growth of 11% annually over the next five years.

Apple’s flagship product, the iPhone, has long been the cornerstone of its financial success, consistently driving revenue since its launch in 2008.

Despite introducing new products like the Apple Watch, AirPods, and a growing services division, the iPhone remains a significant contributor to Apple’s total revenue, accounting for over 50%.

As Apple continues to evolve and embrace new technologies, such as artificial intelligence (AI), investors are eager to see what lies ahead for the tech giant, as it maintains its position as a leader in innovation and market influence.

iPhone Still Central to Apple Business

The iPhone remains Apple’s largest revenue generator , though its share of its total income  has gradually decreased over the past five years.

Despite diversifying into products like the Apple Watch and AirPods and expanding services, the iPhone still accounts for over 50% of Apple’s total revenue.

Since its launch in 2008, the iPhone has been a consistent driver of Apple’s financial success, with substantial revenue growth through 2015. After a few years of stagnation, iPhone revenue saw an uptick in 2024, rebounding from a slight decline the year prior.

Table created by CCN based on CIRP’s data .

While still strong, sales have declined slightly in recent years, peaking in 2021 before seeing a minor drop. The Americas continue to be the largest market for iPhone sales, while growth in China has slowed since 2015.

However, Apple’s active iPhone user base continues to rise annually , reflecting longer device retention and a shift in focus towards services, which now contribute significantly to Apple’s revenue.

2025 Stock Expectations

Apple (AAPL)  has surged 30% in 2024, continuing its impressive performance with a 269% return over the past five years, outpacing the S&P 500’s 82% gain.

As investors look ahead to 2025, there are expectations of another strong year, driven by Apple’s strong product lineup and the integration of AI into its devices and services.

Apple’s premium products, including iPhones, Macs, and wearables, are key to its ongoing success. Warren Buffett’s support highlights Apple’s position as a dominant and innovative brand with a competitive edge.

With over 2.2 billion active devices worldwide, Apple stands to benefit from AI’s growth in 2025 , contributing to a projected 6% revenue growth and a 22% increase in earnings per share (EPS). Analysts expect 2025 revenue to reach $414.4 billion, up from $391 billion in 2024.

However, Apple’s valuation is high, trading at 34 times the projected 2025 EPS, above its historical average. While its strong AI position justifies this premium, caution is advised as the stock may already reflect the near-term outlook.

Overall, Apple remains a solid investment. Despite its high valuation, it’s likely to continue growing, making it a valuable addition to a diversified portfolio in 2025.

AAPL Stock In Five Years

Apple has delivered impressive gains over the past five years. This remarkable performance is primarily due to the growing prominence of its high-margin services business. And to a robust smartphone upgrade cycle driven by the advent of 5G technology.

Analysts project  that Apple will sustain double-digit earnings growth of 11% annually over the next five years. Based on its fiscal 2023 earnings of $6.13 per share, its earnings could climb to $10.33 per share in five years. Apple’s five-year average forward earnings multiple is 28, slightly below the Nasdaq-100 index’s multiple of 29.5.

Assuming Apple maintains its 28 times earnings multiple and reaches $10.33 in earnings by the end of the forecast period, its stock price could rise to $289, marking a 57% increase from current levels.

Apple currently trades at 28 times trailing earnings, offering a relative discount compared to the Nasdaq-100.

Investors seeking to add a dividend-paying tech stock to their portfolios should consider buying Apple now as it looks poised to deliver strong gains  over the next five years.