1 Sign This Small Apple Segment Looks Poised for More Strong Growth

While growth has returned to Apple's (NASDAQ: AAPL) iPhone segment, the growth is slow. Even if the tech giant's recent launch of the iPhone X spurs an unusually large upgrade cycle, meaningful growth in this segment can't persist forever. After all, Apple is currently raking in a whopping $141 billion in annual iPhone revenue, bringing smartphone sales to 62% of total revenue.

Considering its low-single-digit growth recently and the huge portion of revenue the product segment already contributes, rising iPhone sales may not be enough for investors to award Apple a higher valuation multiple. Investors will likely want to see signs of consistently strong growth in other product segments. Fortunately, one segment has seen accelerating, double-digit growth recently -- and it's looking particularly promising this holiday season.

Image source: Apple.

Source: Fool.com