New Product Releases Should Boost Apple Stock
Apple Inc. (NASDAQ:AAPL) stock has been gradually inching up, and it shows no signs of slowing down. AAPL stock is a few notches below its 52-week high of $123.82, and it is expected to remain in the limelight as the company announces its fiscal fourth-quarter numbers today. Interest in its upcoming product releases is also high.
Apple is set to unveil new products at its October 27 event. Expectations are that the company will announce a new line of “Macs.” The “iPhone”-maker released “MacOS Sierra” last month, but the company did not introduce new computer models running on MacOS Sierra. It has been rumored that Apple will introduce a new “MacBook Pro” with a row of customizable touchscreen keys. (Source: “Apple plans to launch new Macs at an October 27 event,” Recode, October 18, 2016.)
MacOS Sierra is a major operating system update that introduces “Siri” support and options for copy/paste functions between “iOS” and “MacOS” devices. It also includes photo support for the new “iPhone 7” (the “Plus Portrait” feature), and it includes features designed for next-generation MacBook Pro models. The timing of the new releases is just right, as the holiday shopping season is about to begin. This should boost the company’s sales, as well as AAPL stock.
The move is significant, as Mac is an important part of Apple’s growth story. For the fourth quarter, Apple sales are expected to fall, as analysts are projecting a decline in iPhone sales for the third straight quarter.
However, Apple has been taking measures to expand its revenue streams. It partnered with Deloitte Consulting LLP last month to bring about enterprise digital transformation through iPhone and “iPad” solutions. Such efforts focusing on software and services shall lead to continuous revenue streams for the company, and this is very good for Apple stock.
Analysts are bullish on AAPL stock, with UBS maintaining a $127.00 price target and a “buy” rating on Apple stock, and Morgan Stanley (NYSE:MS) keeping its price target as $124.00 and rating AAPL stock as “overweight.” (Source: “Apple sales likely to fall again despite Samsung woes,” MarketWatch, October 25, 2016.)
As Apple Inc. announces its earnings, the most important number is the company’s guidance. Apple stock has been gaining on the back of stronger-than-expected demand for the iPhone 7. Concerns remain about growth in China, yet the new product updates and the growing Apple ecosystem shall keep AAPL stock buoyant.
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