Apple's iPhone sales in China have surpassed those in the United States for the first time, contributing to Apple potentially becoming the biggest player in the smartphone market this year, despite global smartphone shipments being on track to be the worst in a decade due to economic headwinds in China and the US, according to Counterpoint Research.
This article mentions the stock of Apple (NASDAQ:AAPL). The author's suggestion is not explicitly stated, but they express concerns about the low dividend yield, modest dividend growth, and potential overvaluation of Apple's stock. The author also discusses Apple's strong brand, the possibility of an acquisition of Disney's assets, and the headwinds and risks facing the company. The author suggests that a recession or market correction could lead to a potential price drop and provide a good entry point for investors. However, they also acknowledge the potential for the stock to continue trending upwards, especially during the holiday season.
Stocks started the final week of August on a positive note, but September is historically a bad month for stocks and analysts are warning of more turmoil ahead for the market.
Apple stock rose more than 2% on Tuesday ahead of its Sept. 12 event where the company is expected to announce new products, including the iPhone 15 and new Apple watches.
The global smartphone market is expected to decline, but IDC predicts that Apple's iPhone market share will reach an all-time high due to trade-in deals, buy-now-pay-later schemes, and enticing features in their upcoming iPhone 15 Pro Max.
Apple's stock is on track to snap a seven-month winning streak, despite a 6.3% rally over the past two weeks, as concerns over declining smartphone demand continue to affect the technology behemoth.
Apple shares have declined due to falling revenue in its product segments, but the company's long-term outlook remains strong, driven by its booming services business and dominant market shares, with two reasons to buy Apple stock being the upcoming iPhone launch and its potential in high-growth industries like AI and virtual/augmented reality.
The iPhone 15 and iPhone 15 Pro are expected to be announced on September 12, with pre-orders starting on September 15 and the release date set for September 22, 2023.
Apple stock is experiencing a decline leading up to the release of the iPhone 15.
Apple's iPhone 15 launch may face delays due to production issues, resulting in lower stock availability, while the iPhone 15 Pro Max is expected to be delayed by up to a month; leaked price details suggest a significant mark-up on the iPhone 15 Pro and Pro Max; Apple is rumored to be preparing a cheaper MacBook to rival the Chromebook, but it risks diluting its brand; the European Union has designated the App Store, Safari browser, and iOS as "gatekeepers" and plans to introduce regulations to prevent anti-competitive behavior; Apple's stock has fallen following restrictions on Chinese officials' use of iPhones.
The launch of the latest iPhones by Apple aims to boost consumers and investors amidst falling share prices caused by deteriorating international relations, with tensions between Beijing and Washington threatening sales in China, one of Apple's biggest markets.
Apple's upcoming iPhone 15 launch is expected to be less exciting than previous years.
Apple is expected to unveil the iPhone 15 models, new Apple Watches, software and services, and possibly other hardware accessories during its livestreamed event on September 12th.
Apple is set to unveil the iPhone 15 with new features, but let's take a look back at the evolution of the iPhone, which revolutionized the mobile phone industry and sold over 1.2 billion units.
Apple, founded in 1976, has gone through significant milestones such as the introduction of the Apple II, Macintosh, iPod, iPhone, and more, eventually becoming carbon neutral in 2021 and continuing to innovate with the release of the iPhone 14 in 2022.
Investors hoping for a surge in Apple's stock on iPhone launch days may be disappointed, as historical data shows that the stock usually falls on the day of the announcement and the release, but gains in the months following the release.
Stocks slump as Oracle and Apple experience losses, with the Nasdaq Composite having its first losing day in three, while Apple's new iPhone 15 and iPhone 15 Pro fail to boost investor interest in the company.
Summary: Apple announced the iPhone 15 and iPhone 15 Pro at its annual launch event, with the Pro model keeping the same price as last year's version, while the Nasdaq Composite suffered its first losing day in three, largely driven by a 13.5% drop in Oracle's shares.
Apple's highly anticipated iPhone 15 launch disappoints investors and Wall Street.
The article does not mention any specific stock recommendations. However, it discusses Apple (NASDAQ:AAPL) extensively and highlights the author's positive view towards the company's valuation and growth prospects.
The author's core argument is that while Apple's growth has slowed, its elevated valuation is justified due to factors such as its superior competitive position, strong brand and connection with consumers, solid prospects for future growth, and strong financial position.
Key information and data mentioned in the article include:
- The Wall Street Journal reported that the Chinese government had banned iPhones for government employees, but the Chinese government later denied this report.
- If the ban had been true, analyst Dan Ives estimated it would be a hit of half a million iPhones, but he referred to it as "more bark than bite."
- Apple's growth has slowed, but its high valuation is justified due to its many advantages, including its competitive position and strong financials.
- Apple's valuation is less dependent on current earnings and more focused on long-term prospects.
- Apple's revenue is comparable to other massive companies, but it still has room for growth, especially in the high-margin services segment.
- Apple's dependence on China is both a risk and an advantage, as China is also dependent on Apple.
- The Chinese economy is facing challenges, and a cooperative relationship between the US and China would benefit Apple and the global economy.
- The author believes that Apple's strong management and adherence to secrecy and compartmentalization give it a unique edge.
- The author suggests that expectations for Apple may be too low if globalization is not receding as expected.
Apple's latest iPhone, the iPhone 15 Pro, has shown better-than-expected lead times and pre-orders, dispelling investor concerns and suggesting strong early demand despite previous worries about a possible ban in China.
Apple is unlikely to have any major product releases or events for the remainder of 2023, with no new MacBooks, iPads, or accessories expected, although there is a possibility of a new iMac with an M3 chip being announced.
UBS analyst David Vogt's data suggests that initial demand for Apple's iPhone 15 Pro models is softer compared to last year's models, contradicting reports of strong sales, which caused Apple stock to fall.
Apple is expected to achieve year-over-year growth in Q4 thanks to better than expected iPhone revenue and profit, with the iPhone 15 Pro Max and iPhone 15 Plus performing well, while the standard iPhone 15 and iPhone 15 Pro may face order cuts if their prices are not reduced, according to Ming-Chi Kuo's analysis based on supply chain sources.
The launch of Apple's iPhone 15, marked by sold-out pre-orders and long queues, comes after the company reported a decline in sales for the third consecutive quarter.
Wedbush analyst Daniel Ives believes that lukewarm reviews for Apple's new iPhone 15 may be overshadowed by strong sales, driven by a large number of iPhone users who haven't upgraded their phones in four or more years and the fear of missing out (FOMO), leading to potential pre-order rise and higher average sales prices (ASPs), suggesting that consensus analyst estimates for Apple's sales growth in 2024 could be conservative and projecting a $240 price target with 37% profit potential for Apple stock.
This article mentions the stock of Apple (NASDAQ:AAPL). The author's recommendation is to buy Apple's stock.
The author's core argument is that Apple's historical growth and expanding margins make it an attractive investment. They also discuss the pricing strategies and innovations of Apple's new iPhone lineup, suggesting that it will drive sales growth. The author also addresses the potential challenges of prolonged upgrade cycles and the risks associated with the Chinese government's actions towards Apple. They provide valuation metrics and projections for Apple's future revenue and stock price.
US stocks are set for their worst monthly loss of 2023 as bond yields surge on fears of higher interest rates from the Federal Reserve.
Apple's iPhone 15 release provides insights into the global economy, with investors monitoring sales impact on the stock.
The North American smartphone market experienced its worst quarterly performance in over a decade, with a 22% decline in Q2 2023, but Google's Pixel phone sales increased by 59%, earning the company 4% of the market and making it the only company that survived unscathed.
Despite September historically being a weak month for stocks, the next quarter tends to be the best-performing period of the year, making it a good time to invest in undervalued stocks like Alphabet.
Historically the worst month for stocks, September sent the market lower for the third quarter, causing pain on Wall Street.
Stock markets are experiencing their worst month of the year, as the Federal Reserve confirms its commitment to keeping interest rates higher for a longer period, leading to concerns about the Fed's hawkish stance continuing to weigh on stocks.
Stocks had their worst month of the year in September, and the start of a new quarter is not expected to bring much relief as economic data, including the September jobs report, highlights a week of key updates.
Apple stock is expected to face challenges due to lower iPhone upgrade rates and a lack of immediate catalysts, according to analyst Brandon Nispel, who downgraded the stock to neutral and noted that Apple's valuation is stretched compared to historical rates.
September was the worst month of the year for the stock market, with all three major U.S. financial indexes experiencing declines, but cybersecurity leaders CrowdStrike and Zscaler are well-positioned for future growth despite their stock price drops.
Wall Street downgrade of Apple demonstrates the risks of trying to time the stock market.
Sales of Apple's iPhone 15 in China have been disappointing compared to its predecessor, with market analysts attributing this to weak consumption and the popularity of rival Huawei; however, in the US, the new iPhone is expected to show a double-digit rise in the first nine days of sales compared to 2022.
Apple's stock fell after reports indicated that Huawei is gaining a larger share of the Chinese market, with the new iPhone 15 facing challenges in sales compared to its predecessor.
The global smartphone market experienced a contraction of 8% in the third quarter, reaching its lowest level in a decade due to subdued demand for major brands like Apple and Samsung, which could impact upcoming earnings; however, there is hope that the market could recover in the last few months of the year with the release of the iPhone 15 lineup and the festive season in various regions.
Apple is not expected to release any new Macs or iPads for the remainder of 2023, according to predictions by analyst Ming-Chi Kuo.
