Apple Stock Gaining From Holiday Season
This Black Friday has brought some good news for Apple Inc. (NASDAQ:AAPL) as consumers look for attractive deals on Apple devices. Now it is time for Apple Cyber Monday deals. A report over the weekend confirmed that discounts on Apple products hold a lot of excitement for consumers, even if the discounts may not be on the latest models. The sheer power of Apple’s brand has always been one of the strengths of AAPL stock.
On Saturday, Adobe Systems Incorporated (NASDAQ:ADBE) released its 2016 online shopping data for Black Friday and Thanksgiving Day. More than $5.0 billion was spent online by the end of Black Friday, a 17.7% increase year-over-year. Black Friday 2016 also became the first day in retail history to drive over $1.0 billion in mobile revenue at $1.2 billion, a 33.0% growth year-over-year. (Source: “Media Alert: Adobe Data Shows Black Friday Breaks Online Sales Record With $3.34 Billion,” Adobe Systems Incorporated, November 26, 2016.)
But the important data mentioned in the report was that the “five top selling electronic products on Black Friday were Apple iPads, Samsung 4k TVs, Apple MacBook Air, LG TVs and Microsoft Xbox.” This is a good indicator that even old Apple models do not lose their charm among consumers. (Source: Ibid.)
AAPL stock has already recovered from the lows hit following President-elect Trump ‘s victory on November 8, closing at $111.79 in the last trading session.
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Apple Cyber Monday Deals
After the weekend shopping extravaganza, now comes Cyber Monday. According to the forecasts by the National Retail Federation, some 122 million Americans are expected to look for bargains on their mobile devices, up by one million from a year ago. Generally, consumers reserve a portion of their budgets exclusively for Cyber Monday as attractive digital deals are offered, said the CEO of the federation, Matthew Shay. (Source: “Cyber Monday becomes next big target for shoppers,” USA Today, November 28, 2016.)
Retailers offer promotions exclusively online on Cyber Monday. The best Apple Cyber Monday Deals from Best Buy Co Inc (NYSE:BBY), Target Corporation (NYSE:TGT) and Wal-Mart Stores, Inc. (NYSE:WMT) have been posted on the retailers’ web sites. Attractive discounts are available on select “iPad,” “iPhone,” “MacBook” and “Apple Watch” products. Best Buy has offered savings of up to $400.00 on the original Apple Watch, which looks like a great Apple Cyber Monday deal.
Consumers appear to be excited by the old models at great prices, and this boosts expectations for high Apple sales. Although the current sentiment is not very upbeat about Apple stock, good numbers from the holiday shopping season are likely to turn things around for AAPL stock.
Apple Inc. Dominates Smartphone Market
There was another positive report that came in last week, which stated that Apple took a record majority of world-wide smartphone profit share in the third quarter. According to research by Strategy Analytics, third-quarter smartphone operating profits reached $9.0 billion globally, of which Apple took 91% of the share. This amounts to $8.19 billion for the U.S. technology giant. (Source: “Apple captures record 91 percent of global smartphone profits: Research,” CNBC, November 23, 2016.)
This is because Apple Inc. enjoys the highest profit margins in the smartphone industry, as the company has the ability to price its iPhones at a premium. Consumers know that bargain deals on Apple devices come rarely, and that is why Apple Cyber Monday deals hold so much importance.
Even the data from Alibaba Group Holding Ltd’s (NYSE:BABA) “Singles Day” event proved how popular the Apple brand is and how it provides a strong support for Apple stock.
Consumers are looking forward to Apple Cyber Monday deals and investors are focused on Apple sales in the holiday season. Although Apple stock has returned over eight percent year-to-date, as compared to over 10% gains recorded by the S&P 500, the demand for the latest Apple models is likely to provide support to AAPL stock.