Apple Inc Stock: Will Tim Cook's Gamble Pay Off? 

 

pple Inc (NASDAQ:AAPL) stock is under pressure due to concerns of a weaker than expected iPhone supercycle.

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After loosing over 8% since the beginning of September, shares of Cupertino based tech giant Apple, Inc. (NASDAQ:AAPL) seem to have found support from the 100-day moving average. However, Apple stock is still under pressure as mixed reviews of its recent launch event held in the Steve Jobs theater and the recent analyst commentary have led to a rise in the bearish sentiment around Apple stock. Apple stock is up over 33% in the hope of a major iPhone Supercycle. However, there are rising concerns that lower than expected number of customers will purchase the recent models. Tim Cook's gamble of higher-priced iPhone seems to have taken a toll on the iPhone demand.

Posted by Kumar Abhishek on October 04, 2017, 07:43 AM EST

Related Ticker: AAPL

Apple Inc (NASDAQ:AAPL) stock is under pressure due to concerns of a weaker than expected iPhone supercycle.

Flickr

After loosing over 8% since the beginning of September, shares of Cupertino based tech giant Apple, Inc. (NASDAQ:AAPL) seem to have found support from the 100-day moving average. However, Apple stock is still under pressure as mixed reviews of its recent launch event held in the Steve Jobs theater and the recent analyst commentary have led to a rise in the bearish sentiment around Apple stock. Apple stock is up over 33% in the hope of a major iPhone Supercycle. However, there are rising concerns that lower than expected number of customers will purchase the recent models. Tim Cook's gamble of higher-priced iPhone seems to have taken a toll on the iPhone demand.

Lower demand for latest iPhone models?

While iPhone X is still not available for order, sales of iPhone 8 began a fortnight ago on September 22nd. The initial response, especially in Asia was not that great. The lines in front of Apple stores were much smaller and pre-orders for iPhone 8 were much lower than previous years. According to a survey conducted by RBC Capital Markets, 64 percent of prospective iPhone buyers want an iPhone X, 8 Plus or 8. This is lower than 71 percent of prospective buyers who preferred an iPhone 7 or 7 Plus after its release last year.
The situation is similar in China where around 65.1% of prospective iPhone customers said they intend to buy one of the three new iPhone models. In comparison, 75.7% of prospective buyers had preferred the newly announced iPhone 7 or iPhone 7 Plus in September 2016. Apple has been losing market share in China as fewer customers were buying an iPhone. There were speculations that consumers are holding back for the upcoming iPhone launch and analysts were expecting the newer models of iPhone to drive Apple's market share in the Chinese smartphone.