From Nasdaq: 2024-05-15 13:00:00

Apple Inc. has been underperforming this year, up only 0.9% compared to Roundhill Magnificent Seven ETF’s 23.6% gain. This lackluster performance is attributed to Apple’s lower exposure to AI and concerns over iPhone sales growth in China.

In China, Apple faced a 19% decline in smartphone shipments, losing market share to Huawei. Apple’s sales plunged while Huawei saw a notable 70% increase, pushing Apple to the third position. Despite this weakness, Apple aims to lead in AI technology with its new M4 processor.

Analysts believe Apple’s advancements in AI could drive iPhone sales. Quarterly revenues fell, but less than expected. Sales in Greater China exceeded analyst estimates, easing concerns about market share loss. Additionally, Apple raised its cash dividend and authorized a $110 billion stock buyback program.

Investors can consider ETFs like XLK, VGT, and IYW with heavy exposure to Apple to mitigate individual stock risks. These ETFs offer a way to capitalize on Apple’s potential while diversifying within the tech sector. Getting key ETF info via newsletters can help investors stay informed.



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