Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.
Key Morningstar Metrics for Apple
Apple Stock Update
Apple AAPL unveiled updates to all of its major operating systems at its Worldwide Developers’ Conference, or WWDC, keynote. Highlighted by iOS 26 (reflecting a release date ahead of calendar 2026), updates focused on a visual redesign dubbed Liquid Glass and wider AI capabilities across applications.
Why it matters: We saw Apple’s software updates mostly as incremental but positive. We continue to see the firm’s moat exemplified in tight integration between its hardware and software that enables strong design and compelling features that lock in customers.
We noted a proliferation of small, but useful, generative AI features across apps. Apple’s artificial intelligence rollout has been protracted and still lacks better Siri integration, but we believe AI is helping Apple develop new and convenient features more quickly.We also observed a heightened focus on developers, most notably by allowing them to access Apple’s on-device AI models for better integration with Apple Intelligence. We believe this could build on Apple’s app ecosystem network effect with more third-party AI features.
The bottom line: We maintain our $200 fair value estimate for shares of wide-moat Apple, with our long-term thesis intact. Software updates fit with our positive expectations for Apple to continue developing a compelling consumer software ecosystem. Shares look fairly valued to us.
We continue to see geopolitical supply chain and tariff risk adequately priced into Apple stock, along with more moderated growth expectations, particularly for the iPhone. These fit with our own thesis on healthy, but slowing, iPhone unit sales growth.
Coming up: Apple’s software updates will be available to consumers in July as a beta release and will fully launch in the fall when we expect Apple to unveil new iPhone models. We expect potential new form factors (like an ultrathin iPhone) to complement the Liquid Glass software update.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
