Impact of new iPhones on Apple’s stock

On September 14, Apple launched a new set of iPhones with new operating system updates but what stood out was their sustained growth against chip shortage and inflation.

The tech giant seems to be unfazed by the global chip shortage issue and the rising inflation, which has derailed every other business venture.

New Updates & Releases

Launching their newest iPhone 13 series – Apple spoke about the most innovative and powerful features their new phones offer. Along with these, a new iPad, iPad mini and an Apple Watch Series 7 with a curved screen (edged) were also launched.

The new devices will have a new operating system. In addition to that, the company unveiled a plethora of new Apple TV+ shows and Apple Fitness+ updates. While these minor updates weren’t breakthrough events, there are some take-home points like the most professional handset – iPhone 13 Pro, the smallest and the cheapest iPads, redesigning of the Apple Watch etc.

iOS 15 is expected to release next week. 

5G & Cash Inflow Winning the Game

While these updates kept the tech world buzzing, investors were keeping a keen eye on its stock performance which fell slightly after the announcement. Most analysts see iPhone sustaining its growth through 5G network services like they did last year. In fact, that’s one of the key reasons why the company maintained growth despite the pandemic led chip shortage in the market. 

Experts feel Apple doesn’t need to do much with iPhone 13 to sustain growth as customers might not go on a buying spree now; instead, they are looking at a better 5G network. Goldman Sachs predicts that the Delta variant will take its toll, making it hard to sell the new iPhones. They predict the stock target in the next 12 months to be around $140 price range. If current price levels follow, Apple stock will likely fall by 5.4%.

However, a steady cash inflow in Apple makes people trust and flock to Apple, which works for it. Experts feel that perhaps this is why they are positioned better than other mobile device makers. As recent as this month, Apple shares hit an all-time high as they reported a 50% increase in iPhone sales. The year-on-year sales touched $39.6 billion as compared to the previous period.

Investors primarily remain bullish on Apple, which shows AAPL stock started gaining slowly and will gradually pick up as investors bid later this year.

All these suggest that Apple enjoys a good advantage and a tricky strategy to sustain growth, unlike other tech giants, making its growth strategy more robust. 

Bearing this in mind, most analysts give Apple shares a ‘buy’ rating rather than a ‘hold’ rating. No analysts recommend a ‘sell’ rating for Apple. This, despite the new verdicts over Apple’s anti-competitive policies that might directly lead to loss of revenue.

At a time when chip shortage is affecting smartphone purchases across the globe, Apple’s smartphone shipments hit 62% in Q1 2021, up from 53% in Q1 2020. In contrast, the global smartphone shortage went up 70% in August from 45% in June. Banking on 5G services, Apple captured 57% of $400+ and 75% of the $800+ smartphone market by Q2 2021. Many say that the relative scale of the company and its better buying power has kept it going as it has got the edge over others in competitive pricing.

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