Apple has become the second company to reach a market valuation of $5 trillion, according to The Guardian — the achievement follows a 24% rise in its stock price this year, significantly outperforming the rest of the “Magnificent Seven” tech group. The company’s stock has been buoyed by strategic moves that have shielded it from the AI spending frenzy gripping the industry.

Strategic Pricing and Leasing Model

Apple has opted to keep iPhone prices stable, even as it raised the cost of MacBooks and iPads; Analysts say this decision has driven demand, with customers purchasing flagship devices ahead of expected price increases later this year. Plus, Apple has introduced a new device leasing program in the U.S. through Klarna, allowing customers to pay as little as $17.99 per month for an iPhone. The South Florida Reporter notes that this model mirrors car leasing, offering flexible 12- or 24-month plans with predictable payments.

At the end of the lease term, customers can return the device, upgrade to a new model, or purchase the device outright. According to the report. Every monthly payment goes toward the device’s original price without interest, ensuring customers never pay more than the manufacturer’s suggested retail price.

Shying Away from AI Infrastructure Costs

Apple has been somewhat shielded from the current AI stock volatility by its relatively slow entry into the AI space, and Instead of developing its own AI models, the company has relied on Google’s technology for services such as the revamped Siri. This has spared Apple the high infrastructure costs that have made investors wary of other big tech firms.

Dipanjan Chatterjee, a vice-president and principal analyst at Forrester, said: “Apple has resisted the AI spending race, betting that customer experience—not infrastructure investment,will ultimately determine the winners.” He added that the leasing program is a “clever response” that reframes the cost of ownership without reducing the device’s price.

Investor Sentiment and Future Outlook

Apple is set to report its third-quarter earnings after the market closes on Thursday; Analysts are forecasting a revenue increase of more than 15% compared to the same period last year. The timing of the leasing program coincides with rising component costs driven by the AI boom, which have made high-end smartphones harder to sell at full price.

While the new leasing model offers a more accessible path to Apple’s products, it also comes with some caveats, though Unlike previous financing options, AppleCare+ is no longer included in the base fee and must be purchased separately for damage protection. This change could affect consumer adoption, particularly for users who value the added security of the extended warranty.