Dubbed as the Magnificent 7, Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA) are the most influential companies in the US stock market.
These firms have large market capitalisation and dominate the technology industry.
However, in 2025, Broadcom (NASDAQ: AVGO) has overtaken Tesla in market capitalisation.
| Company | Alphabet | Amazon | Apple | Meta Platforms | Microsoft | Nvidia | Tesla | Broadcom |
| Market Capitalisation | 2.96 | 2.35 | 3.79 | 1.80 | 3.86 | 4.56 | 1.53 | 1.57 |
Totalling to around US$22 trillion dollars, the eight juggernauts form a significant portion of the S&P 500 (^GSPC), widely regarded as the barometer for the US stock market.
With their huge influence, any movement in their share prices can cause an outsized influence on the performance of the broader market.
Cracks in the Armour
Apple has consistently been among the top three largest companies in the US but 2025 has exposed cracks in its armour.
Concerns over slowing iPhone replacement cycles, doubts on its ability to monetise artificial intelligence (AI), and the added pressure of tariffs on China-made imports have weighed heavily on the stock.
The company’s recent financial results reflect this pressure.
| FY2024 | FY2023 | FY2022 | |
| Net Sales | 391.04 | 383.29 | 394.33 |
| Net Income | 93.74 | 97.00 | 100.00 |
Total net sales rose just 2% year-on-year (YoY) to US$391.04 billion, in the fiscal year ended 28 September 2024 (FY2024).
However, net income declined for a second straight year to US$93.74 billion from US$97.00 billion in FY2023 and US$100 billion in FY2022.
This underperformance stands out against its big tech peers.
While Microsoft and Nvidia have surged on the back of AI monetisation strategies, Apple has been weighed down by its slow pace of iteration and strict privacy policies.
As a result, it has lagged the rest of the Magnificent 7 in both innovation momentum and stock performance.
Turning Point – iPhone 17
The launch of the iPhone 17 on 19 September 2025 has marked a potential turning point for the company.
The new lineup, particularly the iPhone 17 Pro models exceeded expectations which prompted suppliers to ramp up production.
Pricing for the lineup starts at US$799 for a standard iPhone 17 256GB, while the iPhone 17 Pro 256GB begins at US$1,099.
In Singapore, the same phones were going at S$1,299 and S$1,749 respectively.
This indicates that Apple’s flagship products still command significant consumer loyalty.
Looking further ahead, many are already looking forward to 2026, when Apple is expected to debut its first “flip” iPhone.
If the “flip” model is able to deliver both innovation and premium design, it might become another catalyst and drive share price higher.
Xiaomi Enters the Ring
While global demand remains robust, competition in the Mainland is heating up.
Just a week after Apple’s launch, Xiaomi introduced its Xiaomi 17 series, positioning it as a direct competitor in the premium smartphone space.
According to Ivan Lam, senior analyst at Counterpoint Research, the Xiaomi 17 “has also consistently invested in imaging systems to match those of Apple”
Adding onto the pressure, Apple’s sales in Greater China have slipped for the past three fiscal years.
| FY2024 | FY2023 | FY2022 | |
| Americas | 167.05 | 162.56 | 169.66 |
| Europe | 101.33 | 94.29 | 95.12 |
| Greater China | 66.95 | 72.56 | 74.20 |
| Japan | 25.05 | 24.26 | 25.98 |
| Rest of Asia Pacific | 30.66 | 29.62 | 29.38 |
Falling from US$74.2 billion in FY2022 to US$67.0 billion in FY2024, the trend highlights the importance of defending its premium positioning.
The stakes have never been higher for Apple to hold onto its dominance.
Support by Services
The iPhone maker’s segment performance shows that it is still anchored around the iPhone but increasingly supported by Services.
| FY2024 | FY2023 | FY2022 | |
| iPhone | 201.18 | 200.58 | 205.49 |
| Mac | 29.98 | 29.36 | 40.18 |
| iPad | 26.69 | 28.30 | 29.29 |
| Wearable, Home and Accessories | 37.01 | 39.85 | 41.24 |
| Services | 96.17 | 85.20 | 78.13 |
The sales generated from the iPhone remained stable at around US$200 billion, with no real growth.
Mac and iPad sales were weak post-pandemic, reflecting muted consumer demand, while wearables and accessories declined for a second consecutive year.
Sales from Services are closing in on US$100 billion in FY2024, up from US$78.1 billion in FY2022.
Driven by recurring income streams from subscriptions such as Apple Music, Apple TV+, and iCloud storage, Services has become a reliable growth driver and buffer against volatility of its hardware business.
Apple’s Next Test
While the iPhone 17 launch has provided the renewed momentum, risks still remain on the horizon.
Especially with Xiaomi pressing into the premium tier, Apple’s ability to sustain its brand edge in Greater China will be vital.
Looking ahead, the 2026 “flip” iPhone is Apple’s next major opportunity to spark consumer excitement.
However, “Apple Intelligence” must evolve and prove that it can deliver more than just integration.
Get Smart: Beyond the iPhone
The tech giant has been the laggard of the Magnificent 7 in 2025, but the current reception for iPhone 17 suggests that the company is far from losing its grip on consumers.
For investors, it is not whether Apple can sell premium devices and continue its consumer loyalty.
Instead, it is whether it can convert that loyalty into sustained earnings growth while closing the innovation and monetisation gap with its big tech peers.
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Disclosure: Charlyn owns shares of Amazon, Apple, and S&P500.
