Why Apple Stock Was Climbing
What’s going on with Apple stock
Apple stock was climbing on Monday, gaining as much as 4.1%. As of the market close, the shares were up 4.01%.
Several news items were positive for Apple (NASDAQ:AAPL) investors and were the driving forces behind the price appreciation.
Why we care
According to The Wall Street Journal, Apple is looking to expand its manufacturing outside China. Apple’s dependence on China has been mocked for years by critics who claim that it is the company’s weak point. Among other reasons, the analysis cited China’s “Zero-COVID” plan. There are already manufacturing operations in Vietnam and India, which may eventually take a larger share of Apple’s device quotas. Having alternative sites would benefit Apple because it would offer the company greater flexibility.
Apple expects to release the newest version of its HomePod smart speaker in late 2022, according to well-known Apple analyst Ming-Chi Kuo. The company has fallen behind rivals in the smart speaker market. Nevertheless, it may take market share if it can solve the puzzle of usefulness, design, and price point. Reports previously claimed that Apple was developing devices with display screens and cameras. However, there is no confirmation of these claims.
Finally, according to the UBS Evidence Lab, David Vogt of UBS said that a recent poll of 7,000 smartphone users revealed that demand for the iPhone is increasing in China, with purchase intent up 6% year over year. The iPhone 13 has stolen market share from Chinese smartphone vendors. The results were somewhat mixed. However, buying interest in the United States has decreased by 4%.
Apple stock has tumbled 22% thus far in 2022, owing to a bear market, price increases, and the prospect of a recession looming.
These worries contrast with Apple’s fiscal second-quarter results, which showed record sales for the three months that ended March 26. An all-time revenue high from its services business bolstered the company’s results. Furthermore, second-quarter revenue highs for the iPhone, Mac, wearables, home and accessories businesses also supported results.
Given Apple’s outstanding execution, we believe that its stock is a buy at this price.