Apple Tops Correction-Buy List With 90% Retention and Services Growth

1 articles · Updated · The Motley Fool · May 20

Apple was singled out as the smartest tech stock to buy in a market correction, with the call favoring resilience over higher-beta momentum names.
About 90% customer retention underpins that case, keeping iPhone users in Apple’s ecosystem and supporting recurring services sales alongside device revenue.
Record services revenue in recent quarters adds a second earnings engine, helping cushion temporary hardware weakness when consumers delay upgrades in tougher economies.
A market correction typically means a 10% to 20% drop in a major index, and the report argues Apple has historically recovered well while often outperforming the Nasdaq over the past decade.
Because Apple’s valuation has stayed relatively reasonable even in strong markets, pullbacks can offer what the report describes as bargain entry points for long-term investors.

Given high inflation and a leadership change, is Apple still the safest tech stock during a market dip?

With a hardware expert as its new CEO, will Apple's lucrative services growth slow down?

Is Apple's brand loyalty strong enough to overcome product delays and rising competition from AI innovators?