Apple company is one of the biggest companies by market cap, also one of the greatest innovators for so many years and has been the greatest tech stocks. Although there has been a downtime for apple, however, Apple investors can still anticipate great returns, because earnings development of Apple stock is expected.
Looking back, in April 26, 2016 Apple shares drop as iPhone sales decline and the outcome did not meet the standard predicted.
The candlestick on the graph below is positioned nearly support level at 103.49 and suddenly dropped the next day at 97.65 at the close by 7 points.
The big questions for the Apple investors that time was, how bad was the iPhone slowdown and how long will it be to pick up?
The easiest way to answer that question is to decide what Apple Inc. needs to produce in order to give investors an eye catching return.
The latest Apple product released was iPhone 6s. It was launched last September 9, 2015 in an event in San Francisco, together with the larger iPhone 6 Plus. And then on September 12 pre-order kick off day and September 25 was the release day.
Sales of iPhone 6s and iPhone 6s Plus has been remarkable. They sold over 13 million units of iPhone 6s and iPhone 6s Plus in their first weekend being on the market. And this knocks down the record of Apple set the previous year, knocking down any first past weekend sales outcomes in the history.
However, on Tuesday, July 26, 2016, Apple released its financial results for the 3rd quarter of fiscal year 2016 (the 3 months ended 25 June 2016).
The chart below is showing Apple shares opened at 99.61 on July 19 and declined three straight days from July 20 until July 22 and then continue to drop until July 26 at 96.72 late trade.
The slowdown was anticipated, however, as Apple encountered, particularly tough times compares to early 2015, which saw remarkably high turnover due to limited iPhone 6 demand. Other sectors, most particularly iPad, have been in decline for few months. Apple services like iTunes, Apple Music, App Store, iCloud, and to a slighter extent Apple Pay and licensing, blunted the decline. The iPhone and Mac sales have declined and overall revenue has dropped.
Another most awaited event for the Apple Inc. investors is about to happen in just a few weeks. This is the launching of iPhone 7. And because Apple Inc. sales are in decline, this unveiling will be very important. It is not sure how Apple Inc will escape from this pothole until the year 2017, because a more intense update to the iPhone is anticipated.
The world wide web is full of assumptions about the release of iPhone 7 and iPhone 7 Plus and maybe even the iPhone 7 Pro, as it is getting closer to the release date.
Conclusion: Even though the stock generally increases, it lost 32% of its worth in the year after iPhone 5 and increased only 16% after iPhone 6s. From that unveiling until today Apple Inc has given up another 4 percent.
The numbers that we see in every release of the new iPhone is not a solid monitor of Apple directions. As you can see there are many possible reasons that it will decline, but it can also increase in just a blink. The releasing of iPhone 7 this September 7, 2016 might be another big hit for Apple Inc.
Should you purchase Apple Inc. stock now, and hope for increase as sales of iPhone 7 and next year's model take effect?
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