Apple Stock Waiting for the Next Growth Catalyst
Apple Inc. (NASDAQ:AAPL) stock declined by about three percent in the last trading session, and it has been under pressure due to concerns about President-elect Donald Trump’s policies.
Trump has been quite vocal about his criticism of Apple Inc on the topics of outsourcing production to China and the company’s stand on data protection. But there is a piece of news that probably got less attention, and which could provide the much-needed push to AAPL stock.
In the first five days of it being available online, the latest “MacBook Pro” model generated over seven times the revenues that the 12-inch “MacBook” did during its April 2015 launch. The new model’s sales already equal 82% of all the revenue generated by the 12-inch MacBook, and it has accumulated more revenue than any other laptop this year. (Source: “Apple’s newest MacBook Pro generated 7x more online revenue than MacBook at launch,” Slice Intelligence, November 8, 2016.)
Moreover, a supply chain report had confirmed that Apple is raising component orders for the new MacBook Pros, and that the company is expected to do this until the end of 2016. This is a good indicator that Apple is quite optimistic about fourth-quarter sales. (Source: “New MacBook Pros appear to be selling well as supple chain report says Apple is raising component orders,” 9to5Mac, November 8, 2016.)
These reports are a good indication that MacBook Pro sales may actually turn out to be better than expected. This is likely to buoy AAPL stock, which came under pressure when “iPhone 7” sales were being underestimated. The focus will be on customer reviews now, as the first orders for the MacBook Pro with “Touch Bar” are set to arrive early next week.
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Although the Trump effect will continue on Apple stock for some time, it will not be long before the focus shifts back to how well the company’s iPhone 7 and MacBook Pro sales are doing. In light of the current indicators, these products are likely to be in good demand, and shall boost the company’s bottom line, as well as Apple stock.
Outbursts about outsourcing may sound good as campaign rhetoric, but finer details are required before the Trump administration can bring about any significant damage to Apple’s business and AAPL stock. Questions that need to be answered include: how many jobs will be created if Apple stopped outsourcing, and how high would the cost be?
Until then, Apple stock should do well on the back of good demand for its products.