Reallocating capital from Apple to Google has proven profitable, as Google’s diversified exposure to cloud and AI offers higher growth potential. Apple’s heavy dependence on iPhone sales, coupled with privacy regulations like ATT (App Tracking Transparency) that have reduced ad revenue by an estimated $10 billion annually, limits its upside compared to peers. With a forward P/E significantly above the tech sector average, Apple’s valuation appears stretched, particularly as competition from low-cost Android devices erodes its market share in price-sensitive regions like India and Southeast Asia, suggesting a tactical reduction in exposure.
