Apple Inc. (NASDAQ:AAPL) closed Thursday's session at $308.63, up 4.84%, marking an 8.76% gain for the holiday-shortened week. U.S. markets were closed Friday for Independence Day. The rally added approximately $210 billion to Apple's market capitalization in a single day, far exceeding the estimated gross sales from its first foldable iPhone order.
The surge was fueled by a Nikkei Asia report, cited by MacRumors, indicating Apple has asked suppliers to prepare for 10 million foldable iPhones this year, up from an earlier target of 7-8 million units. IDC estimates an average selling price of $2,500 for the device, implying gross sales of $25 billion for the full production run. The market's reaction—valued at 8.4 times that figure—suggests investors are betting on a longer iPhone cycle and expanded product runway, leaving little room for disappointment on costs, launches, or interest rates.
Apple now sits near a $4.54 trillion valuation, trading at roughly 37 times trailing earnings. The move provided some support to the broader market Thursday as chip stocks slumped. The Philadelphia semiconductor index fell 5.4%, with Nvidia Corp. (NASDAQ:NVDA) ending down 1.4% and SanDisk Corp. dropping 14.1%. The Dow Jones Industrial Average managed a record close, while the S&P 500 finished little changed and the Nasdaq Composite ended lower.
Bond yields eased after the June jobs report showed the U.S. added only 57,000 jobs, missing the 110,000 forecast, while unemployment held at 4.2%. "It just takes the pressure off the Fed to raise rates in the short term," said Adam Sarhan, CEO of 50 Park Investments, in a Reuters interview.
This week, investors will focus on the Federal Reserve's minutes, due Wednesday, and early second-quarter earnings from Delta Air Lines (NYSE:DAL) and PepsiCo (NASDAQ:PEP), marking the start of the Q2 earnings season. Joe Mazzola, chief trading and derivatives strategist at Charles Schwab, told Reuters he is watching "whether or not that broadening continues," as non-tech names have picked up more gains in the last month.
Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, noted the main issue is "how incrementally hawkish are they leaning." James Ragan, director of wealth management research at D.A. Davidson, said a tightening cycle would pose "a risk to the market and the valuations."
Over the weekend, Apple's supply chain received a positive update. Foxconn (TPE:2317), Apple's largest iPhone assembler and Nvidia's top server supplier, reported second-quarter revenue jumped 39.8% year-over-year to T$2.513 trillion ($78.71 billion), beating LSEG SmartEstimates. Foxconn said smart consumer electronics, including iPhones, saw "significant" growth, though it cautioned about a volatile global political and economic environment.
However, supply risks persist. India is investigating a data leak at Tata Electronics linked to Apple's next iPhone 18 Pro, according to a Reuters report. "We are investigating," said S. Krishnan, secretary at the Ministry of Electronics and Information Technology.
Apple's $210 billion one-day jump now faces a crucial test this week as traders watch for Fed minutes, early earnings, and supplier news. Broader tech results are expected later in July, adding another layer of uncertainty.
