Apple Stock Back on Bullish Trend Amid Robust iPhone 12 Demand
Apple stock price rebounded last week as reports suggest iPhone 12 series has been beating initial demand forecast, with expectations that the rally is likely to see backing from recovery in tablet markets.
Apple stock price has been making range-bound movements over the past three months. The shares are trading in the range of $110 to $135 as concerns over declining Apple’s smartphone market share weighed on sentiments. The market participants are also expressing worries over the lockdowns in the European Union.
iPhone 12 demand outperform expectations
Apple has recently launched a 5G supported iPhone 12 series. KeyBanc analyst John Vinh said Apple’s iPhone 12 lineup is off to a “healthy start.”
The analyst claims that a carrier promotion tailwind continues to generate strong demand for new iPhones, particularly for the iPhone 12 Pro, where customers demand is outstripping supply by a wide margin.
Previously, the bank had expressed concerns over iPhone 12 demand amid supply chain problems and pandemic related social distancing policies.
Apple has generated a significant drop in iPhone revenues in the past two quarters due to pandemic. Its iPhone sales came in at only $25 billion in the latest quarter compared to $33 billion in the year-ago period.
The lead in tablet markets is adding to Apple stock
Moreover, reports are hinting that Apple continues to dominate the tablet market, with a market share of 34.4% compared to Samsung’s 20%. Apple’s iPad sales stood around a record level of $6.8 billion in the latest quarter while Mac sales hit $9.03 billion for the first time.
“Tablets have come back from the dead as they deliver the perfect balance of mobility and computing power at a wide range of price points during such a crucial time. Tablets are a natural choice for first-time PC users who want something uncomplicated and affordable to work with,”
says Canalys analyst Victoria Li.