The stock market experienced record highs on January 9th. Among the biggest winners was Apple, as the technology company’s stock rose to its highest price on record. The price hovered at $309 per share, a sharp increase from earlier in the weak. Analysts pointed out Apple’s achievements helped drive the Dow Jones upwards. How far Apple can climb is anyone’s guess, but the factors contributing to Apple’s record-breaking could continue. Namely, Apple could reap the rewards of increased iPhone sales in many markets.
Sales figures from China drove Apple stock price dramatically upwards. In December alone, Apple shipped 3.2 million iPhones to the overseas market. The number reflects a 500,000 unit increase from the previous year. Once the Chinese Academy of Information and Communications Technology released the data, The tech giant’s stock rose immensely.
China represents a gigantic market with tens of millions of potential consumers. Regardless, there’s never a guarantee for sales numbers, as the product must deliver on consumer expectations. So far, Apple’s products are becoming preferable to competitors in the Chinese market, and the preference translates into boosted sales figures. The exceptional sales figures, in turn, generate improvements in the stock price. The impact then reverberates through the Dow Jones Industrial Average.
To Apple’s chagrin, the competitors the company faces in China come in the form of low-priced Android products. Economy smartphones cut into Apple’s overall sales. Apple does offer a higher-quality product, which is a positive. Apple may never enter, much less corner, the market of low-priced phones, but it can reign supreme in the high-end market. The iPhone may cost more, but it delivers more. Millions of consumers seem to agree it is better to go with the more expensive iPhone.
Apple’s good fortunes mimic other companies appreciating the stock market’s new records. The good fortune, however, isn’t uniform among all stocks.
Although the Dow Jones nearly reached 29,000, not every company did well. Bed, Bath, & Beyond, in particular, suffered in the aftermath of horrible news. The release of third-quarter earnings showed a company’s revenues in freefall, and shares dropped dramatically in the wake of the report. A fundamental truth is evident here: not every company succeeds even in a bull market.
Successful companies should heed this truth. Apple’s record-breaking stock prices don’t automatically ensure further progress in the future. That said, analysts speculate the stock could increase in the coming months.
Dil Bole Oberoi
