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With Apple’s shares declining during the past few months of 2022, is the new iPhone Apple’s saving grace during this turbulent period?
The iPhone 14, one of the items Apple (AAPL) revealed this month, was made available in retailers recently. However, analysts were already keeping track of preorders, which demonstrated that demand for the new phones appeared to be promising, especially amid a time of inflation.
It is reported that Apple stock fell 17% in 2022. Economists agree that the decrease and downward trend in Apple’s shares is primarily due to the state of our current global economy. Tech competitors like Google are also facing this problem due to rising prices and inflation all over the world. The pandemic and after effects of COVID-19 is said to be the cause for rising prices in most countries. This phenomenon has caused sales to significantly decrease for most, if not all, of these corporations.
However, not all is bad news for Apple. This month, Apple stocks seem to have risen. Apple appears to have slightly recovered from this downfall as AAPL stock shot up by almost 4%. This rise in shares follows that the company has increased its production of the new iPhones due to the rise in demand of its newly released line of technology this September. Despite the after effects of the pandemic, Apple has managed to make a comeback. It is important to note that the new phone was launched on September 7th, however, AAPL shares remained unmoved that day. Nevertheless, the demand for the iPhone 14 line has grown to be more than that of iPhone 13 which is why things look promising for the future of Apple. The increase in demand could possibly be a result of the increase in income of consumers post the pandemic or the expectation of increasing future prices of iPhones.
Additionally, the Pro models, like always, seem to be doing better than the standard models. A trend noticed by analysts over the past few years is that consumers are now leaning more towards high end products from Apple. As for the accessories that were introduced alongside the new range of iPhones, the Apple Watch Ultra looks to be doing quite well. Because of this high demand, the lead time for the pro line is at an all time high. Lead times can provide insight into Apple's supply chain and how variables like inflation impact it. Supply chains all throughout the world have been impacted by the global COVID-19 pandemic . Supply chain issues have been more eminent post pandemic in most industries.
Despite ongoing market pressure, Apple's stock has managed to hold up fairly well. Moreover, the most current figures indicate that Apple has almost 50% of the domestic smartphone market share because of a recent surge in sales. Both domestically in the U.S. and internationally, iPhone's market share keeps growing. However, Apple is becoming more and more dependent on iPhones to generate revenue. Stock investors may be concerned about Apple's growing reliance on the iPhone.
Sources:
Apple iPhone 14 Preorders Strong Ahead Of Friday's Retail Launch
Why Apple Stock Is Down 17% So Far This Year
Apple stock price: Can iPhone 14 release stop AAPL share slide?
Apple Stock Spikes On iPhone 14 Report: Can It Keep Climbing?
New Apple iPhones and Apple Watches are off to impressive start: JPMorgan
Why Apple Stock Should Be A Winner This Week
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