The Apple (NASDAQ:AAPL) stock price closed at $139.96 before the 4th of July break. It has risen by more than 8% since the start of the current financial year and peaked at $142.92 in January 2021. But looking at the last 12 months, the share price is up by almost 50%. This is a pretty staggering performance for such a large business in my eyes. And given its upcoming product launches, I believe this upward trajectory may continue. Let’s take a closer look and see whether I should be adding this business to my portfolio.

The pandemic after-effect on Apple’s stock price

Apple hit a $2 trillion market cap in August last year despite the disruptions caused by the pandemic. In turn, it became the biggest public company by market cap worldwide. But even after hitting this exceptional valuation, the Apple stock price continued to climb, surging 85% by the end of the year. To me, it doesn’t look like Covid-19 has been able to stop the firm from dominating. But can it continue to deliver such impressive growth in 2021?

2021 developments

Looking at the second-quarter earnings report, profits for the period grew by 54% year-on-year to $89.6bn. More than half of that came from the newly launched iPhone 12 as consumers rush to get access to a 5G-enabled mobile device. So I’m not surprised to see the Apple stock price jump on the news.

Beyond its physical products, the company is steadily expanding its services division. The tech giant already offers music and TV streaming solutions. But the management team is now adding a new tracking accessory called AirTag. This small device works in conjunction with iPhones and emits a Bluetooth signal containing its location. That sounds like quite a handy way for me to stop losing my keys.

Overall, the services division reported $16.9bn of sales, accounting for 19% of the total revenue stream this quarter. 

The risks that lie ahead

As exciting as the recently published results were, I’m expecting the second half of this year to see some slowdown. Why? Because Tim Cook, the CEO of Apple, has warned the company is starting to feel the pressure caused by the ongoing semiconductor chip shortage. 

This is ultimately a short-term problem. And so, I’m not overly concerned by it. However, there is a looming regulatory threat that has got my attention. Apple is currently facing scrutiny regarding its income practices on the App Store.

There is a growing number of complaints from software publishers that the firm is overcharging for access to the platform. The most well known of these incidents is with Epic Games’ Fortnite, where the game refused to run in-game purchases through the Apple Store and was subsequently taken down for breach of contract. The legal trial is still ongoing, with a final verdict expected in the next few weeks. 

Should the judge rule in favour of Epic Games, Apple may be forced to reduce its fees, leading to a significant cut in revenue from this segment of the business. Needless to say, that could have a substantial impact on the Apple stock price. And so, I’m keeping a close eye on this situation.

What’s next for the Apple stock price?

The tech bull cycle will continue in the coming years, in my opinion. Why? Because the rollout of 5G has only just started. And companies like Apple are already beginning to tap into this new market.

With iPhone demand sky-rocketing and seemingly no immediate signs of slowing down, I believe the Apple stock price is more than capable of continuing to grow from here. Therefore despite the risks, I am considering adding this tech giant to my portfolio.