Apple Inc. shares rose sharply Monday, pushing the company to more than $ 1 trillion in market value again, after a prediction that the stock will rise more than 20% on stronger-than-expected sales of new iPhone 11 models.
AAPL, + 2.35%
increased 2.4% to $ 223.97 on Monday to increase the Dow Jones Industrial Average
DJIA, + 0.36%
gains, raising Apple's market capital to $ 1
"We modestly raise our iPhone volume forecasts and expect investor sentiment on Apple shares to be significantly improved given the company's ability to drive upward volume expectations despite the 2019 product cycle being widely considered to be muted," JPMorgan- analyst Samik Chatterjee wrote in a note that maintained an overweight.
JPMorgan lifted its iPhone sales forecasts for the current quarter by an additional 1 million units and 3 million more for the fourth quarter of the calendar year, led by iPhone 11, which debuted to mid-year reviews in early September. The Wall Street company expects the upward trend to continue into 2020, when the company is expected to introduce 5G-enabled iPhones.
"We expect solid consumer interest in 5G phones at the premium end of the North American market, and Apple is well positioned to drive a larger share of the 2020 product cycle," Chatterjee wrote. He projects Apple will sell 198 million iPhones in 2020 and $ 200 million in 2021.
First Take: Things change at Apple, but the iPhone formula for hype remains the same
Spike in hardware sales – at a time when Apple is making more use of the Revenue Services Department – comes as a relief to investors, many of whom are annoyed by Apple's exposure to a US trade war with China and federal probes on how the company does business.
When Apple reported fiscal results for the third quarter of August, it revealed to for the first time in nearly seven years as iPhone sales accounted for less than half of the quarterly revenue, incremental updates to the company's flagship product, combined with a spoonful competition from Samsung Electronics Co. Ltd.
005930, + 1.34%
and cheap Chinese smartphone manufacturers such as Huawei, led a rioting reaction among consumers: Third-quarter iPhone sales were $ 25.99 billion, a 12% drop from the previous year a total of $ 29.47 billion.
Apple's Services division picked up the slack with 12.6% growth to a record $ 11.46 billion in the same quarter.
In recent days, the company has released a TV advertising flash for Apple TV +, a $ 4.99 monthly streaming service, and debuted this fall competing with Netflix Inc.
NFLX, + 1.73%
Walt Disney Co.
DIS, + 0.28%
AT&T Inc. & # 39; s
T, + 1.10%
HBOMax, and others.