Price Predictions: Apple

Apple Inc. (AAPL)  is a household name known for their innovative products but will they continue to perform well with iPhone sales steadily decreasing over the past three years?

Latest News

  • An Apple chip executive told employees that Apple has developed  the modem chip, which would replace Qualcomm components in their products. The executive didn’t disclose when the modem would be ready to use in Apple products, but it notes that a 2019 Apple-Qualcomm patent agreement has a six-year licensing pact.
  • Apple’s new $549 AirPod Max are backordered from 12 to 14 weeks despite being criticised for their high price.
  • In August Apple became the first US company to surpass $2 trillion in market capitalisation.
  • iPhone sales have been steadily decreasing for the past three years. However, the last quarter showed a remarkable 21 per cent decrease year-on-year. So why have sales fallen? Well iPhones just aren’t wowing us enough, with the most popular iPhone at the start of this year being the three-year-old iPhone 7. Last year latest model sales accounted for only 7.5% of all iPhone sales (down from 19% in 2017). However, Apple still has the highest active devices globally with 1.5 billion users at the start of 2020. 

Price Predictions

Short term predictions:

December: The forecast for beginning of December is 123. Averaged Apple stock price for month 119. Price at the end 116, change for December -5.7%.

January 2021: The forecast for beginning of January 116. Averaged Apple stock price for month 112. Price at the end 110, change for January -5.2%.

What the experts say for the next 12 months:

Morgan Stanley’s Huberty predicts Apple will have a record December quarter, giving a  PT of $136. Whereas, Goldman Sachs’ Hall stays with his controversial  PT of $75. This week Wedbush analyst Ives raised the Apple’s price target from $150  to $160 whilst retaining an Outperform rating on the shares. Overall, 39 analysts sharing their consensus rating for AAPL stock in 2021 agree that it is a buy.

Image from CNN Business

36 analysts, surveyed by CNN Money, predict the median price target for Apple stock at $133 over the next year, representing 15% growth from its previous closing price of $115.

The bottom line is even considering the risks, investors should maintain their positions as a positive long-term outlook is ahead. Keep up to date with the latest news with BullBear.

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