Here’s why Apple stock is ready for ‘what’s next’

Pamela LoweNovember 7, 2023

Apple (AAPL) stock is poised for fresh gains once the market realizes the Chinese iPhone maker’s long-term growth prospects and the bullish implications of its upcoming mixed reality headset. Bank of America on Tuesday described “promising” revenue numbers from Apple’s China business, while Jim Cramer also highlighted the upcoming launch of Apple’s highly anticipated Vision Pro headset at the start of next year. “I think Apple is on the verge of making the next step,” Jim said earlier Tuesday, citing the launch of the headphones and optimistic data coming out of China. Apple (AAPL) Year-to-Date Performance Apple’s App Store revenue in China rose 10% year-over-year in October after a 10% year-over-year increase the previous month, according to Bank of America, which cited data from SensorTower. . The US and China make up the company’s two largest App Store markets, accounting for 58% of total app revenue. Tuesday’s research note comes in the wake of a series of negative press about Apple’s place in the world’s second-largest economy. Most notably, in September, the Wall Street Journal reported that Beijing banned government employees from using iPhones and other foreign-branded devices at work — leading to a massive sell-off of Apple shares. Chinese authorities have since denied the report, and the stock has pared some of its losses. Apple shares are still up about 40% year to date. “Due to recent media reports about iPhones being banned in… [government] Strong App Store data in September and October is promising for Apple, Bank of America analysts wrote in a note Tuesday, and the company cited positive catalysts that include “new product introductions and stable iPhone hardware.” However, analysts cautioned that these positives could be offset “by a weaker consumer spending environment.” But we see the data as another sign that Apple remains an aspirational brand for Chinese consumers. Its closed ecosystem, product quality and pricing distinguish it from counterparts such as the Chinese company Huawei. China accounts for roughly 19% of Apple’s total revenue, though the company is investing heavily in India to capture market share in the world’s most populous country and diversify its supply chain away from China. The launch should provide Apple with another catalyst, as the high-quality product — which Jim personally tested in July — will help further diversify Apple’s revenue streams, giving it an advantage over many of its big tech competitors. The company said the headphone will be available at a starting price of about $3,500 starting early next year. “People don’t realize that [the Vision Pro] he [business-to-business] “There are companies that will use it and then we’ll use it,” Jim said Tuesday of individual consumers. (Jim Cramer’s Charitable Fund is long AAPL. See here for a complete list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund’s portfolio. Jim talked about a stock on CNBC TV, and waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy, together with our Disclaimer. No fiduciary obligation or duty is created or created by your receipt of any information provided in connection with the Investor Club, and no specific results or profits are guaranteed.

Tim Cook, CEO of Apple Inc., holds the iPhone 15 Pro Max during an event at the Apple Park campus in Cupertino, California, US, on Tuesday, September 2019. 12, 2023.

David Paul Morris Bloomberg | Getty Images

apple (AAPL) stock is poised for fresh gains once the market realizes the Chinese iPhone maker’s long-term growth prospects and the bullish implications of its upcoming mixed reality headset.

Pamela Lowe

“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”

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