Size of the text
Bulls expect robust demand for both Macs and iPads to continue. Inside an Apple store in Los Angeles’ downtown district.
Getty Images/AFP/Patrick T. Fallon
Apple
Investors are anticipating the release of new iPhones in September, and June quarter financial results are just three weeks away, so shares finished at an all-time high on Wednesday, the stock’s first record closing since January. Apple’s (ticker: AAPL) stock has underperformed the market: Since December, the stock has increased by 9%, while the market has increased by 2%.
S&P 500 Index
has increased by 16%. However, the stock has been gaining traction, and it is on course to gain for the seventh day in a row.
The stock rose 1.8 percent to $144.57 on Wednesday, breaking the previous high of $142.70 set on Jan. 26. Apple’s market worth has risen to $2.4 trillion, roughly $300 billion over its previous high.
Microsoft’s
$2.1 billion is the estimated value of the company. The rise appears to be fueled by a number of causes. Apple shares tend to outperform in the summer quarter, according to several experts, ahead of the company’s annual debut of new iPhones in September. While Apple has yet to make an announcement, the iPhone 13 lineup is widely expected to be unveiled before the conclusion of the September quarter. Analysts are also citing a recent increase in Apple’s production orders for the new phones, as well as strong demand for the iPhone 12 series. While Apple will face some difficult comparisons in the future quarters because to the pandemic-related rise in demand for both Macs and iPads, bulls believe that robust demand will continue for several quarters. The company recorded sales of $89.6 billion in the March quarter, up 54 percent, thanks to a 66 percent gain in iPhone revenues, a 27 percent increase in services, and increases of 70 percent for Macs and 79 percent for iPads. China saw an 88 percent increase in sales, while the Americas saw a 35 percent increase, Japan saw a 49 percent increase, and the rest of Asia saw a 94 percent increase. Apple didn’t provide specific advice for the June quarter, but did say that the sequential fall from the March quarter will likely be bigger than in previous years due to the iPhone 12’s later launch date and the impact of component shortages. Due to supply restrictions, the business warned on its March quarter conference call that revenue will likely be decreased by $3 billion to $4 billion in the June quarter. According to Wall Street, revenue for the June quarter will be $72.9 billion, with earnings of $1 per share. Eric J. Savitz can be reached at eric.savitz@barrons.com./n
Read More
