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The stock acting like it wants to come off these lows and overtime was down as much as 3% now, you know, maybe about 1 and 1/2. How big a deal is that projection, that confidence it sounds like we're hearing from Tim Cook about the holiday quarter in the iPhone? This stock's going to be green. I mean, ultimately, if you look at that guidance, what you're seeing in China.
Remember this, there was only 1 week of iPhone 17 in the quarter. Everyone's focused on December and that that's very robust in terms of what we're seeing on iPhone demand specifically out of China. And then you look at what I believe services you know, massive double-digit growth. Look, you go back to the last 6-9 months.
Company back against the wall. Now you have this number and then look what I believe, everyone's playing for AI. You look what look at Amazon, look at the hyperscalers. You see what's happening on authentication and we see on Orbs, you know, I think you also see on CrowdStrike and some of these cybersecurity names.
Apple's going to get into the AI party. And that I believe is worth $75 to $100 a share. If you're an investor right now, I think it's a pound the table moment for the stock. Pat Moorhead, Steve Kovac reporting there that Tim Cook says Apple Intelligence is on track to for them to deliver as they promised next year.
You combine that with the holiday season that they're projecting for the iPhone. How does this set Apple up, do you think? So John, it's really going to depend on the installed base that can't run Apple Intelligence. And as we progress, every every slip of Apple Intelligence, more of these iPhones can support it.
A year ago, had we been in the same place, I would have said it would make a I think I was talking along with Dan Ives about a super cycle and it just didn't happen. So, I don't think the AI bump will be as big as everybody will expect primarily based on the reason that there's a much larger installed base of Apple Intelligence compliant or enough performance and memory to run this.
But hats off on the services. It's over 50% of iPhone. I think that's a a a a great accomplishment. So Dan, is this in a way a pull forward because Apple's getting these 16, 17 sales now versus you know, AI not being the thing to deliver. Is that a bad thing? Is there a way given the growth in services that it turns into a good thing?
How should investors frame that? Yeah, I think Patrick made some great points as he always does. Look, I think there maybe there's a little bit of a pull forward, but it all comes down to like Google once they won that DOJ suit, now it clears the path for what's going to be, I believe, a massive Google Gemini partnership on AI and that will be ultimately when you look at the next one to two cycles.
The fact that iPhone 17 is holding up so strong and a surprise where I believe it's going to be in China in the December quarter, you start to look at numbers. There is a lot more that could go right here than wrong and I think that's why this continues to be you could have a $350 stock. You could have a $400 stock if they get AI right.
If you're wrong here or there, I think minimal downside. That's why in my opinion, it's one of the top large cap names to own here along with some of the other big tech names. Pat Moorhead, beyond iPhone, if we're looking at Mac and a possible halo effect from some of this phone buying. I mean, it does seem that it would help if consumers, if end users have multiple modern Apple chips at their disposal to run whatever it is that the company's offering.
Where else should investors look for potential upside if not driving revenue like iPhone, at least driving EPS upside? Yeah, so this isn't an area that investors have looked at closely, but I think we should look to Mac, right? There's a lot of my channel checks that indicate that Apple will be bringing in a much lower priced Mac for some of the countries that they're under indexed in like China and like India.
And this could drive some serious revenue and just the way that they they do their their models and their engineering, very profitable. Um, so I think that is a a much quicker turn than let's say waiting another 5 10 years for Vision Pro to become something even bigger. And I I wouldn't be surprised if we saw if we did see Apple make a play for more content companies to boost that services revenue.
There were some questions around how they would do in content, but I think the jury has come back and said they're awesome at this and they've played their hand very well.
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