As the festive season approaches, the American stock market has welcomed what is popularly known as the "Santa Claus Rally," a phenomenon where stock prices tend to rise during the last week of December and often into the new yearThe anticipation for holiday spending and year-end investment maneuvers creates a buoyant atmosphereOn December 23, Apple Incmade headlines as its market cap surpassed a staggering $3.85 trillion, positioning it on the verge of becoming the first company to enter the coveted $4 trillion club by year-endThis valuation is remarkable, particularly when one considers it rivals the total market capitalization of major corporations listed on Germany and Switzerland's stock exchanges.

On that very day, other tech stocks also witnessed significant gains, further fueling investor optimismNotably, NVIDIA, Broadcom, and AMD saw stock surges of 3.7%, 5.5%, and 4.5%, respectively

This exciting momentum was not confined to the US markets, as the positive sentiment quickly spread to the Asia-Pacific regionBy December 24, TSMC (Taiwan Semiconductor Manufacturing Company) stocks had reached all-time highs, boasting an impressive cumulative growth of over 84% for the yearTSMC's valuation also crossed the $1 trillion milestone, further underlining the robust performance of the semiconductor sector amidst ongoing global digital transformations.

The relentless boom of artificial intelligence has undeniably streamlined the uplift in technology stocks this yearIn particular, Apple has seen its stock price soar nearly 33% year-to-dateNVIDIA's price surged by over 182%, and Broadcom's rose above 108%. When evaluating the performance of other tech giants, Google saw an almost 40% increase, while Meta (formerly Facebook) surged by nearly 70%. Amazon and Tesla didn't lag either, with their stock prices climbing around 50% and 73% respectively.

Since early November, Apple has experienced a considerable rise in its stock price, augmenting its market cap by about $500 billion

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Analyst Tom Forte from Maxim Group attributes this increase to investors' enthusiasm for artificial intelligence innovations and expectations surrounding an iPhone upgrade cycleAlthough Apple has faced criticism for lagging behind other tech companies in establishing a robust AI strategy, the company is rapidly catching upEarlier this month, Apple integrated OpenAI's ChatGPT functionalities into its devices like the iPhoneThere are even reports suggesting that Apple is in discussions with Tencent and ByteDance to integrate their advanced AI language models into iPhones sold in China.

Historically, the holiday season has been immensely favorable for Apple's iPhone salesConsumers, eager to buy gifts for their loved ones or treat themselves after a long year, often gravitate toward products that not only function exceptionally well but also boast a stylish design and impressive brand prestige—qualities that the iPhone has consistently delivered

This affinity for Apple products usually results in significant sales spikes during this festive shopping period, solidifying the iPhone's status as a must-have electronic product.

Furthermore, analysts from the London Stock Exchange have conducted detailed market analysis and forecast a promising rebound in revenue from the iPhone by 2025. Despite an increasingly competitive smartphone market with a wave of emerging brands and rapid technological advancements, Apple’s deep-rooted technological foundation, sustained innovation, and an extensive ecosystem position it firmly in the marketPredictions suggest that by 2025, with more innovative iPhone products on the horizon—enhancements in chip performance, significant breakthroughs in imaging technology, and improved battery life—combined with expanded global sales channels and optimized marketing strategies, the iPhone’s competitive edge will likely strengthen, propelling revenue growth and enabling Apple to continue its success story in the global smartphone landscape.

"As the accessibility and functionalities of Apple Intelligence expand, it will help improve the demand for iPhones," stated Morgan Stanley analyst Erik Woodring in a recent report

However, market stakeholders express concerns that should Donald Trump be elected president again, he might impose a 10% tax on goods imported from China, which could lead to retaliatory tariffs against AppleWoodring maintains, though, that Apple could secure tariff exemptions for its iPhone, Mac, and iPad, similar to the exemptions granted during the initial round of tariffs imposed on Chinese goods back in 2018.

The Chinese market remains crucial for Apple’s successThis year, CEO Tim Cook visited China thrice to emphasize the importance of this marketAnalysts suggest that Cook's recent trips were aimed at facilitating the implementation of AI within Apple’s services in ChinaDuring as visit last month, Cook stated that regulatory approvals were critical for AI's entry into the Chinese market.

"We are diligently working on this; there is a precise regulatory process we must navigate

We hope to soon bring Apple Intelligence to Chinese consumers," Cook remarked during his October visit.

Independent research conducted by International Data Corporation (IDC) indicates that after two consecutive years of downturns, global smartphone sales are set for a robust resurgence in 2024. Notably, by the third quarter of this year, demand for iPhones began to rebound, spurred by price reductions on older models available on third-party platforms and promotional campaigns for recently launched models.

IDC predicts a growth exceeding 3% for iPhones by 2025. Nabila Popal, IDC's global research director, anticipates a significant rise of generative AI smartphones within high-end flagship devices, which will subsequently trickle down into the mid-tier price segments, with an expectation that by 2028, these devices will capture 70% of the smartphone market.