Apple’s stock appears to do well. The stock rose upwards of $220 per share, a remarkable increase over the $165 per share seen months ago. The reasons for the increase vary. Not surprisingly, strong pre-orders on new iPhone models drive the uptick. If pre-sales are any indication, the iPhone 11, as well as the Pro and Pro Max, should become big hits for the tech companies.
Expectation levels for iPhone 11 sales appear much higher than initially believed. This is great news for Apple, and the company’s stock reacts accordingly. Ironically, issues with previous iPhone releases that contributed partially to Apple’s stock decline. Soft sales in China and the United States drove the price down. iPhone’s secrecy about upcoming releases also generated concerns among would-be customers.
With so many negatives surrounding the iPhone X and other releases, customers felt unmoved. The product didn’t move all that well, either. Positive buzz about the iPhone 11 appears to generate much more interest. Sales indicate as much.
According to investopedia.com, another factor may be driving the demand for new iPhones. The iOS mobile operating system’s upgrades might necessitate users hanging onto older models to give the new one’s a try. Eventually, tech users must purchase a more modern option. Innovations ultimately make something so outdated it can’t be utilized anymore. In this instance, Apple gains a ton of potential new customers due to iOS changes forcing upgrades.
Apple intends to continue releasing devices capable of captivating the public’s imagination. A ballyhooed 5G device comes out shortly. If the iPhone 11 stimulates interest, a 5G system could sell tremendously well. 5G, however, is not known for being exceptionally reliable. Provided there are no bugs, Apple could do well and experience even greater stock soaring. Question marks exist surrounding 5G at this time.
Other questions marks surround the upcoming Apple streaming service ready to launch on November 1. Apple TV+ is not shaping up to be a hit. Will Apple’s stock price drop if the streaming service flops? Investors must wait and see.
Dil Bole Oberoi
