Key Stats for Apple Stock
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Price change for Apple stock in the last 6 months: 27%
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$AAPL Stock Price as of Oct. 16: $343
What Happened?
Apple’s (AAPL:NASDAQ) iPhone Duo went up for preorder on Friday, and launch-day pickup inventory sold out fast. Some online delivery estimates have already slipped into late January.
Apple called the demand “nothing short of extraordinary”, and the company said it will keep taking orders online.
The Duo is Apple’s first foldable phone and its most expensive iPhone ever. It starts at $1,999 and passes $3,000 at the 2TB storage tier. It sits above the Pro and Pro Max.
Supply is expected to be tight, and Counterpoint expects six million units or fewer in the near term.
IDC expects Apple to ship about seven million this year, roughly 3% of its total shipments.
IDC sees Duo shipments growing another 70% next year, which could give Apple about 40% of the foldable market.
What the Market Is Telling Us About Apple Stock
For Apple stock, the story is about value, not volume. Analysts say many Duo buyers will be current iPhone owners.
Some would have bought a Pro Max. Moving from a roughly $1,200 phone to a $2,000 one should give revenue a “healthy boost,”
JPMorgan expects iPhone shipments to stay roughly flat next year and says the Duo could still lift revenue because of its high price.
D.A. Davidson analyst Gil Luria said Apple needs the Duo to succeed. Without it, revenue growth could be “pretty pedestrian.”
He also said some shoppers who come to see the Duo may leave with a cheaper iPhone.
TechInsights analyst Wayne Lam warned that higher prices could stretch upgrade cycles even longer.
The latest quarter gave Apple a strong base.
Revenue was $109.4 billion, up 16%, and iPhone revenue rose 22% to $54.3 billion. But Apple guided September quarter revenue growth to 9% to 11%. It cited supply limits and memory costs.
So Apple stock has a clear boost from Duo demand and also has supply and cost pressure to manage.
So what is Apple stock actually worth?
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