Apple Inc.'s shares rose sharply on Monday, returning the company to over $ 1 trillion in market value, after it was forecasted that the stock would outperform sales of new iPhone 11 models by more than expected than 20% will rise.
AAPL, + 2.35%
rose 2.4% to $ 223.97 on Monday to beat the Dow Jones Industrial Average
DJIA, + 0.36%
has raised Apple's market capitalization since October 9, 201
"We are moderately increasing our iPhone volume forecasts and believe that investor sentiment on Apple shares will improve significantly as the company is able to raise volume expectations despite the 2019 product cycle, which is largely cautious ", said JPMorgan analyst Samik Chatterjee in a note that maintained an overweight rating.
JPMorgan increased its iPhone sales forecasts for the current quarter by an additional 1 million units and 3 million more for the fourth quarter of the calendar year, led by iPhone 11, which debuted to mediocre reviews in early September. The company on Wall Street expects the uptrend to continue until 2020 if the company expects to launch 5G-enabled iPhones.
"We expect a solid consumer interest in 5G phones at the premium end of the North American market, and Apple is well positioned to drive an overseas stock with its 2020 product cycle," Chatterjee said. He estimates that Apple will sell 198 million iPhones in 2020 and 200 million iPhones by 2021.
First shot: Apple is changing, but the formula for the iPhone hype remains the same.
The rise in hardware sales – at a time when Apple relies more on the Services business to generate revenue – comes as a relief to investors, many of whom are concerned that Apple is exposed to a US trade war with China, and that the US federal government is investigating how the company conducts its business.
When Apple announced its third-quarter results in August, Apple announced it for the first time. Almost seven years in which iPhone sales accounted for less than half of quarterly sales. Incremental updates to the company's flagship product and increased competition from Samsung Electronics Co. Ltd.
005930, + 1.34%
and reasonably priced Chinese smartphone makers like Huawei caused a fierce reaction among consumers: iPhone sales reached $ 25.99 billion in the third quarter Decline of 12% compared to the previous quarter last year total of 29.47 billion USD.
Apple's Services division slid 12.6% to a record $ 11.46 billion in the same quarter.
Over the past few days, the company has launched a TV ad for Apple TV +, a streaming service for $ 4.99 per month, competing with Netflix Inc. this fall for the first time.
NFLX, + 1.73%
Walt Disney Co.
DIS, + 0.28%
AT & T Inc.
T, + 1.10%
HBOMax and others.