Apple (AAPL) Sheds Stigma of September 2012 as iPhone Supply Met Demand
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Price: $167.04 -0.57%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: -4.1%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: -4.1%
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Apple (Nasdaq: AAPL) now has the opportunity to set another all-time high.
For Apple, September 2013 is shaping up a lot differently than September 2012. Last year, Apple reached $705.07 on September 21st, prodding investor sentiment higher in the process. The iPhone 5 was set to be the company's de facto best device in years and many on Wall Street was ratcheting price targets up to or past the $1,000 level. But, production constraints and the "Apple Maps" incident left a sour taste in investors' mouths.
The following months saw sentiment wane as questions began popping up about just how much better Apple could do given its key high-end smartphone market was largely saturated. Chatter then started that Apple would be making a lower-cost iPhone much to the chagrin of Apple fans. Really, how much margin can you squeeze from a low-cost device? Maybe half as much as the regular iPhone?
In September, Apple unveiled its iPhone 5s and iPhone 5c and the negativity finally peaked. In what world does Apple think lopping $100 off the price of a high-end smartphone constitute a lower-cost model? Further, no announcement was made that Apple and China Mobile (NYSE: CHL) -- the world's largest wireless carrier -- have entered a partnership. For the most part, everyone was perplexed at just what exactly Apple was up to.
Turning to Monday morning, Apple schooled the market once again when it said that sales of its iPhone 5s and 5c reached 9 million units, far above the 5 million to 7 million units that analysts were expecting. Further, Apple cut the delay in launching the handsets in China from "a few months" down to "let's just do it the same day and see what happens."
We're not even going to go into iOS 7 installations or iTunes Radio subscribers. More info on those can be found with the official release, here.
While most analysts and market watchers were scratching their heads, Apple powered higher. It's not certain that Apple will hit a new all-time high anytime soon, it has passed the one-year mark of one of its most troubling periods in recent times.
Can Apple get back to $700 or above? Possibly, but now investors have to factor in items like Apple's buyback plan and cash dividend. Both those outflows of cash will need to be made up before another all-time record can firmly be met.
Shares of Apple are up 4.8 percent.
For Apple, September 2013 is shaping up a lot differently than September 2012. Last year, Apple reached $705.07 on September 21st, prodding investor sentiment higher in the process. The iPhone 5 was set to be the company's de facto best device in years and many on Wall Street was ratcheting price targets up to or past the $1,000 level. But, production constraints and the "Apple Maps" incident left a sour taste in investors' mouths.
The following months saw sentiment wane as questions began popping up about just how much better Apple could do given its key high-end smartphone market was largely saturated. Chatter then started that Apple would be making a lower-cost iPhone much to the chagrin of Apple fans. Really, how much margin can you squeeze from a low-cost device? Maybe half as much as the regular iPhone?
In September, Apple unveiled its iPhone 5s and iPhone 5c and the negativity finally peaked. In what world does Apple think lopping $100 off the price of a high-end smartphone constitute a lower-cost model? Further, no announcement was made that Apple and China Mobile (NYSE: CHL) -- the world's largest wireless carrier -- have entered a partnership. For the most part, everyone was perplexed at just what exactly Apple was up to.
Turning to Monday morning, Apple schooled the market once again when it said that sales of its iPhone 5s and 5c reached 9 million units, far above the 5 million to 7 million units that analysts were expecting. Further, Apple cut the delay in launching the handsets in China from "a few months" down to "let's just do it the same day and see what happens."
We're not even going to go into iOS 7 installations or iTunes Radio subscribers. More info on those can be found with the official release, here.
While most analysts and market watchers were scratching their heads, Apple powered higher. It's not certain that Apple will hit a new all-time high anytime soon, it has passed the one-year mark of one of its most troubling periods in recent times.
Can Apple get back to $700 or above? Possibly, but now investors have to factor in items like Apple's buyback plan and cash dividend. Both those outflows of cash will need to be made up before another all-time record can firmly be met.
Shares of Apple are up 4.8 percent.
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