iPhone 13 release – is it worth buying Apple shares?

Apple’s (AAPL) shares soared to an all-time high three weeks after the consumer electronics giant released its June quarter financials. But after the recent drop in the company’s shares, many market participants are wondering whether to invest.

The Apple Corporation has repeatedly become an example of a history of great success. She started the personal computer revolution with the Apple II in the 1970s and then the Macintosh in the 1980s. Co-founder Steve Jobs returned to Apple in 1997 and spearheaded a winning streak of innovations that included the iMac, iPod, iTunes, iPhone, iPad, and the App Store. The most significant driving force behind Apple’s current success is the iPhone.

The smartphone, which debuted in 2007, has built a loyal customer base willing to buy Apple products and services. However, iPhone sales have slowed down – users are in no hurry to charge their devices. However, the company is in the midst of a significant refresh cycle with the release of the first 5G iPhones. Apple News: iPhone 13 Launch On September 14, the Cupertino, California-based company announced the second generation of 5G smartphones, the iPhone 13 series. The new phones are an improved version of last year’s iPhone 12 series.

iPhone 13 devices feature brighter displays, faster processors, and improved cameras. And they have increased battery life. Like previous models, the new phones have shown in 5.4, 6.1, and 6.7 inches, and starting prices range from $ 699 to $ 1,099. The iPhone 13 series went on sale on September 24, and initial reviews were positive. Apple also announced Apple Watch Series 7 smartwatches and new iPad tablets at the Fall New Product Launch event. Again, however, investors were not impressed by the news.

After the event, Apple shares fell 1%. Analysts believe the company may be planning another event soon to showcase other devices such as third-generation AirPods wireless headphones. On April 20, Apple unveiled its first Apple Silicon-based iMac desktops and new iPad Pro tablets at its spring new product launch event.

The company also introduced highly anticipated trackers called AirTags. However, after the event, Apple shares fell 1.3%.

Investors are wondering what will be the next upside driver for Apple stock. Recently, the corporation’s sales and profits have increased in two areas: services and portable devices. In the June quarter, Apple’s service business revenue grew 32.9% year-on-year to $ 17.5 billion.

Services include the App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV +, Apple Arcade, and other offerings. Meanwhile, Apple is subject to antitrust scrutiny in the US and Europe for its App Store policies of 30% commission. In November 2020, Apple cut commissions 15% for small developers – perhaps to appease regulators. However, Apple shares declined in the days following the news. On April 30, the European Union’s Antitrust Commission filed preliminary charges against Apple in a complaint filed by Spotify Technology (SPOT). The European Commission has accused Apple of abuse of dominance when distributing apps through its App Store.

Apple shares fell 1.5% on the news. In late August and early September, Apple announced changes to its App Store policy in response to lawsuits in the US and Japan. On September 10, a US District Court judge ruled that Apple’s policy was anti-competitive and ruled against Apple not allowing developers to include external links or other means of directing customers to alternative payment methods outside the App Store in their apps. The news led to a 3.3% drop in Apple stock.

In the June quarter, Apple’s Portable Devices, Smart Home & Accessories business sales grew 36% to $ 8.8 billion. Includes devices such as Apple Watch, AirPods wireless headphones, Beats headphones, Apple HomePod Mini wireless speaker, and various gadgets.

Meanwhile, speculation has surfaced that Apple is going to create a self-driving electric car. Rumors began to gain traction in January 2020 when Hyundai announced that it had begun talks with Apple on a collaboration in the automotive space. Apple has also reportedly been in talks with Nissan and other automakers. In June, Bloomberg reported that Apple had hired Ulrich Kranz, a former BMW executive and recently retired CEO and co-founder of electromobility startup Canoo, to work on Apple’s car business. In addition, Kevin Lynch, Apple’s vice president of technology, moved to the Apple Car project from the Apple Watch division in July.

In the quarter ended June 26, Apple earned $ 1.30 per share on $ 81.4 billion in sales. Analysts had forecast $ 1.01 per share in earnings on $ 73.3 billion in sales. Apple’s revenues grew 100% year over year.

In the June quarter, iPhone revenue grew 50% year-on-year to $ 39.6 billion. iPhone accounted for 49% of the company’s sales during the period. Meanwhile, sales of Mac computers rose 16.3% to $ 8.2 billion, while sales of iPads rose 11.9% to $ 7.4 billion.

Work-from-home and school-from-home trends driven by the Covid pandemic -19 boosted sales in both product categories. Apple did not release specific forecasts for the September quarter, citing market uncertainty over the coronavirus pandemic. Instead, the company provided a few cautious benchmarks for the current quarter.

These benchmarks included a forecast of a slowdown in service business growth. Apple also expects supply chain disruptions to impact iPhone and iPad sales. The next possible upside catalysts for Apple stock could be a second product launch event this fall or the company’s September quarter results. Apple plans to release its fiscal fourth-quarter results on October 28.

Apple stocks began to fall after hitting a record high in early September. As a result, AAPL shares are rated 67 out of 99 in the BD Relative Strength rating.

This rating shows how the value of shares of a particular company correlates with the dynamics of securities of other companies 52 weeks. Suppose we talk about the IBD Composite rating, Apple at 90 points out of 99. The best growth stocks usually have 90 points or higher. In August 2018, Apple became the first company to achieve a market value of over $ 1 trillion. Since the company reached that milestone, it has been by Microsoft (MSFT), Amazon.com (AMZN), Google’s parent company Alphabet (GOOGL), and Facebook (FB). In August 2020, Apple became the first company to reach a $ 2 trillion market value. Microsoft acquired the same level on June 22.

Apple stock got a boost on November 30 when investment bank Morgan Stanley said the company was one of the top 5G wireless investments.

On June 30, Apple stock reached a buy point of $ 137.17, breaking out of the bottom of the cup, according to the daily chart on IBD MarketSmith. On July 9, AAPL shares reached an additional buy point at $ 145.19. It was then that they exited the 23-week consolidation period, according to MarketSmith’s weekly chart. On September 7, the securities reached an all-time high of $ 157.26. Should you buy Apple stock now? Now is not the right time to buy the company’s shares.

They are below the 50-day moving average, which is a negative sign. AAPL shares closed the trading session on October 4 at $ 142.65.