For the first 5(ish) months of the year the tech giant had a rocket strapped to its back, surging from an opening price of $116 to $156, in part thanks to well received first and second quarter reports in late January and early May. Yet since then Apple’s footing has become a bit less assured.
The first issue arose at the start of June, as a tech stock sell-off – prompted by Goldman Sachs (NYSE:GS) claiming the sector’s surge has ‘built a valuation air pocket underneath it creating cause for pause’ – wiped out 4% in a single session. This left Apple lurking below $150 until early August, when its third quarter update reignited the company’s rise.
Apple easily beat analysts’ Q3 estimates. Adjusted earnings came in at $1.67 per share against the $1.57 forecast, while revenue hit $45.4 billion, around half a billion higher than expected. As for the all-important iPhone sales, the company shifted 41 million units; a strong number for what many had thought would be a lame-duck quarter ahead of the launch of the iPhone 8. Elsewhere there was finally some good news from the iPad, which posted its first quarterly growth since 2014.
Propelled by those stellar figures Apple eventually climbed to a fresh record peak on September 1st as it grazed $1.65. From here, however, the company hit a bump in the road, with Apple now sitting at a current trading price of $156.56.
Questions about demand for the iPhone 8 have plagued Apple since the device was announced in mid-September, with multiple reports suggesting that people are waiting for the November launch of the iPhone X rather than purchasing a relatively minor upgrade. That itself might be an issue, as there are rumours the company is facing production problems with the X.
In terms of Thursday’s Q4 figures, then, investors will be desperate to know exactly how many iPhone 8s have been shipped since release. Apple itself stated in its third quarter update that it expects Q4 revenue to come in between $49 billion and $52 billion, the mid-point marking an 8% increase year-on-year; analysts, however, think the actual number will be at the lower end of that range.
There may also be interest in what the company has planned with regard to original content, after it recently hired Jay Hunt, the woman who brought Bake Off to Channel 4, as creative chief of European video operations.
Apple Inc (NASDAQ:AAPL) has a consensus rating of ‘Buy’ with an average target price of $193.09.
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