Bookmark this page and keep checking back for the latest Apple stock news. We’ll be providing continuing updates as news about the iPhone maker and its shares unfolds. You’ll find analysis, stock trends and more.
UPDATE 9/18/2017: Apple stock tumbled after the company’s big event last Tuesday and then languished below $160 for two days before rebounding on Friday. Now it’s a new week, and Apple stock was on the rise again early this morning. However, it ended the regular trading day in the red, down 0.76% at $158.67.
Apple stock perma-bulls see nothing but dollar signs in the iPhone X, Apple Watch Series 3 and Apple TV 4K, but others are saying, “Not so fast.” The $1,000 price tag and extreme supply constraints are giving others pause.
Strong demand expected for the iPhone X
Analyst reports on Apple stock following the iPhone X reveal have been largely positive as analysts see massive dollar signs thanks to that hefty price tag. Doesn’t sound like most of them expect big problems convincing consumers to pay that much for an iPhone.
For example, Macquarie analyst Benjamin Schachter said in a note to investors that he expects “strong demand,” not only for the iPhone X but also the Apple Watch Series 3, which has been liberated from the iPhone, and the Services revenue that will come along with all those new devices. Unfortunately, his colleagues in Asia expect supply of the iPhone X to remain constrained until at least the first quarter of next year, adding that this may even be “optimistic.”
Delayed demand won’t matter for Apple stock
Thus, Schachter sees supply constraints as the greatest challenge for the company, but he’s not worried about a one- or two-quarter supply delay because he expects demand for the handset to remain “robust.” He still expects a “super-cycle” out of the iPhone X and reiterated his Outperform rating and $180 price target on Apple stock.
BMO analyst Tim Long also has an Outperform rating and $180 price target on Apple stock, and he especially liked the higher prices on the iPhones. Not only was the iPhone X priced at $1,000, but Apple also raised the price of the iPhone 8 and 8 Plus relative to where prices on new handsets have stood in past years. He expects a “healthy” average selling price on the iPhone thanks to the higher prices, especially with upselling to higher amounts of storage.
Although he feels the iPhone 8 and 8 Plus are more like an “s” version because they don’t have many features differentiating them from last year’s iPhone 7 and 7 Plus, he still expects them to sell. He notes that iPhone 6 and 6s users will particularly enjoy the “impressive leap in day-to-day use.”
Like everyone else, Long was disappointed by the November release date for the iPhone X because it’s later than expected. He adds that this brings his estimates for the September quarter to the lower part of Apple’s sales guidance, but he doesn’t think it really matters. Thus, he says that delayed demand is just fine for Apple stock “because FY18 metrics look the same or better.”
Apple stock is heading for $200, say some…
Guggenheim analyst Rob Chira sees a steady path toward $200 for Apple stock riding on the company’s new products. In fact, he boosted his price target, tacking another $10 onto the $190 he previously had as his target for Apple stock.
He feels that the iPhone X cycle will be Apple’s longest iPhone cycle in three years driven by “pent-up demand,” despite the signs we’ve seen that demand for new iPhones isn’t pent-up. Apple’s last earnings report revealed that consumers weren’t really pausing their iPhone purchases ahead of last week’s event. All in all, we’ve seen some mixed signals from the company because early this year, management said consumers were pausing their purchases, while just before the event, the numbers made it look like they weren’t.
The other two factors Chira sees driving the extra-long cycle are “a multi-year OLED display rollout” and “double-digit increases” in the average selling price for the iPhone.
…But Apple stock needs high iPhone X sales to reach $200
Elazar Advisors warned in a post for Seeking Alpha that the delay in availability for the iPhone X could have a bigger impact on Apple stock than most of Wall Street would like to admit. They explained that they “want to like Apple stock” but noted that sales growth is needed for it to “accelerate meaningfully.”
They said that in order for Apple stock to reach $200 a share based on a P/E of 15 times, the company will need earnings of $13.50 per share for fiscal 2018. However, consensus stands at only $10.95 for the year, so the company will need “blowout revenue growth” between this December and next December. They looked back at the iPhone 6 cycle, as much of Wall Street has before the big iPhone event, but noted that this time around, quantity is a huge concern because supply for the iPhone X will be severely constrained.
Essentially, it all boils down to how many iPhone X units Apple can make because if it takes too long, consumers will probably give up. Thus, not only is the company testing how high it can raise iPhone prices, but it will also test how long it can make consumers wait for their phones. With all the comparisons between Apple and Tesla, investors will now have to decide whether they think consumers will wait for an iPhone X just as they did for a Model S, Model X or Model 3, relatively speaking, of course.
PREVIOUS UPDATE, 9/11/2017: Apple stock rallied on Monday, closing in the green after losing in the previous four trading sessions. The shares tumbled by about 3% after topping on Sept. 1 at $164.05, the most recent record high closing price. Wall Street will be listening and watching closely on Tuesday as Apple is expected to finally reveal the iPhone X, and analysts are anxious to hear exactly when the pricey smartphone will launch. But whatever the date ends up being, analysts are sure to be projecting huge unit numbers for the tenth anniversary model.
iPhone X supply to be severely constrained: analyst
KGI Securities analyst Ming-Chi Kuo warned in a note on Monday that the iPhone X will be in “severe short supply.” He said that Apple’s suppliers can build just 10,000 units of the phone in one day, which, if true, indicates massive yield problems. As a result, it may be nearly impossible to find an iPhone X for quite some time, he said.
The question here is whether investors will really care that the iPhone X is in such short supply. Ultimately, what matters is how many Apple can sell, at what price, and when. Analysts will likely weigh these factors and try to gauge how cannibalization will play out among the iPhone X, iPhone 8 and iPhone 8 Plus. Most had already been expecting the ultra-premium model to