Apple (NASDAQ: AAPL) isn’t just an iPhone company anymore—it’s a services, wearables, and ecosystem powerhouse. With AI innovation, recurring subscription revenue, and new product categories, Apple continues to be one of the most valuable companies in the world. Here are 10 facts investors should know before buying Apple stock in 2025.

1. The iPhone Still Dominates Revenue

The iPhone remains Apple’s biggest revenue driver, making up nearly half of total sales. New features like AI integration and satellite connectivity help sustain demand.

2. Services Are Apple’s Growth Engine

Apple’s Services segment (App Store, iCloud, Apple Music, Apple TV+, Apple Pay) is growing faster than hardware. It now generates over $100B annually and provides high-margin recurring revenue.

3. Wearables and Vision Pro Expansion

The Apple Watch, AirPods, and Vision Pro (spatial computing headset) are fueling Apple’s entry into new categories beyond phones and laptops, tapping into AR/VR growth trends.

4. Apple Is Investing in AI

While seen as a “late mover,” Apple is integrating AI into Siri, iOS, and devices in ways that prioritize privacy and on-device intelligence, differentiating it from Microsoft and Google.

5. Huge Cash Reserves

Apple holds over $55B in cash and continues to generate massive free cash flow, giving it flexibility for share buybacks, dividends, and new product R&D.

6. Share Buybacks Drive EPS Growth

Apple is one of the world’s biggest share repurchasers, buying back hundreds of billions of dollars in stock over the last decade. This boosts earnings per share (EPS) even when revenue growth slows.

7. Dependence on China Supply Chain

Apple relies heavily on Chinese manufacturing, making it vulnerable to geopolitical tensions, tariffs, and supply chain disruptions. Recent moves to shift production to India and Vietnam aim to reduce risk.

8. Apple’s Ecosystem Creates Loyalty

From iPhones to Macs to AirPods, Apple’s ecosystem keeps customers locked in. High switching costs and seamless integration ensure long-term recurring revenue from upgrades and services.

9. Valuation Is Stretched

Apple trades at a premium valuation compared to historical levels. Investors are paying for its brand power, ecosystem, and financial strength, but growth is slower than some tech peers.

10. Dividends + Stability

Apple pays a dividend and steadily increases it, though the yield remains modest. It’s considered a “blue-chip” growth + income stock, appealing to both conservative and growth-focused investors.

Investor Takeaway

Apple remains one of the safest and most profitable companies in the world. Its blend of iPhone demand, fast-growing services, wearables, and AI integration makes it a long-term winner. The biggest risks? Heavy reliance on iPhone sales and supply chain exposure.