Apple manufactures smartphones, tablets, PCs, software, and peripherals for a worldwide customer base. Its products include Mac desktop and mobile PCs, iPhone, iPad, Apple Watch, and various consumer products, including Air Pods, Beats headphones, and Apple TV. Apple services include App Store, iTunes, iCloud, Apple TV+, Apple Arcade, Apple Music, Apple Pay, and more.

The major indices are lower at midday on Tuesday. Several big banks, including Bank of America and JP Morgan, are sending warning signals about stock market valuations. Crude oil is down 4% at $87 per barrel. The yield on the 10-year note is at 4.55% and the VIX volatility index is up to $22.

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone makes up a majority of the firm sales, and Apple’s other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

We have three strategic asset-allocation models, targeting risk-tolerance: Conservative, Growth, and Aggressive. We make tactical adjustments to the models, based on our outlooks for various segments of the capital markets. Performance matters and we monitor it closely. After an impressive rally in April-May, stocks have taken the performance lead over bonds. From an asset-allocation standpoint, our Stock-Bond Barometer model still sees both asset classes near fair value, so portfolio weights ultimately will depend on strategic factors. We are market-weight on large-cap stocks at this stage of the market cycle, favoring them for growth exposure and financial strength, as well as exposure to the Information Technology sector. Meanwhile, small- and mid-caps offer better valuation and our recommended exposure to them is 15% of equity allocation, in line with the benchmark weighting. One of the market surprises in 2025 was the performance of global stocks, which turned in impressive results. We expect the long-term trend favoring U.S. stocks to be re-established ultimately, given volatile global economic, political, geopolitical, and currency conditions. That said, international stocks still offer favorable near-term valuations, and we target an increased 20% of equity exposure to the group. In terms of growth and value over the longer term, we anticipate that growth, led by the IT sector, will top returns from value, led by Energy, Real Estate, and Materials, due to favorable secular and demographic trends. Value has taken an early lead in 2026, after lagging for the past five years, and appears well-positioned to post solid returns with longer-term interest rates at elevated levels.