Weak iPhone 16 sales impact Apple stock, but improved supply chain and software updates boost outlook.

From Nasdaq: 2024-10-02 01:33:16

In the past month, Apple stock (NASDAQ: AAPL) has remained flat, underperforming the Nasdaq-100. The iPhone 16 series launch shows weaker-than-expected demand, with shorter lead times attributed to improved supply chain rather than poor demand. Upcoming Apple Intelligence software updates may drive sales later in the cycle and boost profitability.

Over the last 3 years, AAPL stock has seen volatile returns, unlike the Trefis HQ Portfolio which outperformed the S&P 500 each year. Apple’s expected revenues to reach record highs this year with growth in emerging markets. The company’s solid balance sheet and services business make it a safe haven in the uncertain market.

Investors are hopeful for a soft U.S. economic landing post rate cuts, but concern lingers for another recession. Apple stock trades at a slightly high P/E ratio of 34x based on FY’24 earnings, despite projected revenue growth. Trefis has a $219 price estimate, about 3% below the current market price.



Read more at Nasdaq: Weak iPhone 16 Sales Don’t Tell The Whole Story For Apple Stock