Apple is back. The stock hit an all-time high on Tuesday despite recent concerns from Wall Street analysts about demand for the new artificial intelligence-powered iPhone 16. iPhone. iPhone shipments in the third quarter rose 3.5% from a year earlier to 56 million units, according to a report released Monday by market research firm International Data Corporation. That’s well above Wall Street’s consensus of 50 million units shipped, and could result in an upside of $2 billion to $4 billion in revenue for the quarter, Morgan Stanley said in a note to clients on Tuesday. mentioned in. According to IDC, Apple’s share of the global smartphone market in the quarter was 17.7%, almost unchanged from the same period last year. Apple is in second place behind electronics giant Samsung, which had an 18.3% share. “In the third quarter of 2024, older iPhone models, especially the iPhone 15, performed very well due to extensive promotions and increased marketing efforts centered around Apple Intelligence,” said IDC’s Worldwide Clients.・Nabila Popal, Research Director for Devices, said in a release. Apple Intelligence is the company’s new suite of generative artificial intelligence tools scheduled to be released later this month. “Despite the gradual rollout of Apple Intelligence in markets outside the U.S., we anticipate that many customers will upgrade from iPhone 13, iPhone 12, and earlier models to new AI-enabled smartphones. “Apple will continue to grow in the upcoming holiday season – ensuring their purchases in the long term,” Popal continued. Apple shares rose to an intraday high of $237.49 on Tuesday following the IDC report, narrowly surpassing its previous high set in July. While the stock price is far from its high during trading hours, it is still up about 2% and on track to set a new all-time closing price. The current high closing price of $234.82 was set on July 16th. Apple has bounced back nicely from Wall Street’s slump in early August, but the stock entered Tuesday still slightly below the S&P 500 since the index’s recent bottom on Aug. 5. Also on Tuesday, Apple announced its first iPad mini update in three years. The tablet, which is available for pre-order now, has a processor that can support Apple Intelligence. The big picture IDC data shows that many on Wall Street are skeptical about sales of the new iPhone 16 lineup. A number of analysts, including JPMorgan, Barclays and Bank of America, have previously said that shorter shipping times for the latest iPhone models could indicate weaker demand for AI-powered devices. Certainly, not all of the chatter around the tech giant is negative. Evercore ISI on Sunday named Apple a tactical outperformer ahead of its end-October earnings report. Apple’s analysts said Apple’s stock could rise if the company meets investors’ fairly low expectations for the current quarter. Apple’s rise on Tuesday, combined with a decline in the club that owns Nvidia following a general decline in chip stocks, means the company remains the most valuable U.S. public company for at least another day. do. Nvidia closed at a record high on Monday, with a market capitalization of $3.4 trillion. Apple was worth $3.55 trillion. Conclusion Investors are understandably focused on IDC’s positive data, but it’s “the exact opposite of what most of Wall Street thinks,” Jim Cramer said Tuesday. Apple is trading at record levels on Tuesday, but the stock should have further upside potential as the AI-driven iPhone upgrade cycle unfolds over time and boosts sales. On Tuesday, Jim maintained his long-held “own it, don’t trade it” philosophy regarding Apple stock. (Jim Cramer’s charitable trusts are long AAPL, NVDA. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, trade before Jim makes trades. Receive alerts. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Apple CEO Tim Cook inspects the new iPhone 16 during an Apple special event at Apple headquarters in Cupertino, California on September 9, 2024.
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apple i’m back.
The stock hit an all-time high on Tuesday, despite recent concerns from Wall Street analysts about demand for the new iPhone 16, which is powered by artificial intelligence.
