Apple Inc. (NASDAQ:AAPL) Maintains Strong Market Position Despite Challenges

BMO Capital maintains a "Buy" rating for Apple Inc. (NASDAQ:AAPL), reflecting confidence in its market position and future prospects. Apple addresses allegations of favoritism in its App Store, ensuring a level playing field for AI applications. Despite facing challenges such as tariffs and rising costs, Apple's strategic investments and market strategies continue to attract investor confidence.

Apple Inc. (NASDAQ:AAPL) is a leading technology company known for its innovative products like the iPhone, iPad, and Mac computers. On August 13, 2025, BMO Capital maintained its "Buy" rating for Apple, with the stock priced at $231.52. This decision reflects confidence in Apple's market position and future prospects, despite some challenges the company faces.

Apple is currently dealing with allegations from Elon Musk regarding favoritism in its App Store. Musk claims that Apple favors OpenAI over other AI applications. However, Apple has denied these claims, stating that its app recommendations are based on objective criteria. Other AI apps, such as Perplexity and DeepSeek, have also topped the App Store charts, indicating a level playing field.

In the third quarter, Apple's revenue growth was primarily driven by iPhone sales. However, this growth is compared to a weaker performance in the previous year. The company's margins are under pressure due to rising costs in research and development (R&D) and selling, general, and administrative (SG&A) expenses. Apple is using financial engineering to mask weaknesses in net margins, and aggressive share buybacks are artificially supporting earnings per share (EPS) and the share price.

Apple is also navigating challenges posed by tariffs under U.S. President Donald Trump's administration. While Nvidia and AMD have agreed to pay 15% of their revenues from chip sales in China to the U.S. government, Apple CEO Tim Cook has announced a $600 billion increase in U.S. investment over the next four years. This move aims to mitigate the impact of tariffs on Apple, as highlighted by CNBC.

Currently, Apple's stock price is $233.48, reflecting a 1.67% increase. The stock has traded between $230.43 and $234.54 today, with a market capitalization of approximately $3.46 trillion. Despite challenges, Apple's strategic moves and market position continue to attract investor confidence, as evidenced by the "Buy" rating from BMO Capital.