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    The Bull Case For Apple (AAPL) Could Change Following $500M MP Materials Supply Chain Deal - Learn Why

    Simply Wall St·07/17/2025 00:57:41
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    • Earlier this month, Apple announced a multiyear, US$500 million commitment with MP Materials to source American-made rare earth magnets, jointly develop a recycling facility in California, and advance innovative magnet-processing technologies as part of its broader US$500 billion U.S. investment pledge.
    • This move highlights Apple's intent to localize key parts of its supply chain, strengthen sustainability initiatives, and expand domestic advanced manufacturing capabilities.
    • We'll explore how Apple's deepening partnership with MP Materials could reinforce its operational efficiency, US-based innovation, and long-term supply chain resiliency.

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    Apple Investment Narrative Recap

    Apple’s investment story is centered on its ability to innovate across devices and services, strengthen its supply chain, and drive operational efficiency even as it contends with trade headwinds and regulatory uncertainty. The recent $500 million commitment with MP Materials is a step toward localizing supply and boosting US-based innovation, but by itself does not materially alter the immediate outlook for the company’s short-term catalysts or principal risks, such as potential cost increases from tariffs and ongoing legal challenges.

    Among Apple’s latest announcements, its multiyear partnership with MP Materials stands out for its direct link to expanding advanced manufacturing in the US. While this supports the broader catalyst of Apple’s US$500 billion stateside investment plan and could reinforce longer-term efficiency and sustainability goals, short-term results for new iPhone product launches and service adoption remain the dominant drivers in the near future.

    In contrast, investors should be aware that ongoing legal and regulatory risks, especially unresolved litigation around App Store practices and...

    Read the full narrative on Apple (it's free!)

    Apple's narrative projects $473.5 billion revenue and $130.7 billion earnings by 2028. This requires 5.8% yearly revenue growth and a $33.4 billion earnings increase from $97.3 billion today.

    Uncover how Apple's forecasts yield a $232.17 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    AAPL Community Fair Values as at Jul 2025
    AAPL Community Fair Values as at Jul 2025

    115 members of the Simply Wall St Community valued Apple shares between US$166.02 and US$282.94, highlighting sharply different views on fair value. While many focus on future supply chain improvements, the potential for rising trade-related costs remains a key factor shaping Apple’s financial performance, explore more perspectives to get the full picture.

    Explore 115 other fair value estimates on Apple - why the stock might be worth as much as 35% more than the current price!

    Build Your Own Apple Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Apple research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
    • Our free Apple research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Apple's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.