Is Now the Time to Buy Apple Inc. After Its Recent Dip?
Concerns among investors that the sales outlook for the company's iPhone X may not be so bright has led to a recent decline in the share price of Apple Inc. (NASDAQ: AAPL), a company which has done nothing but soar in recent years. The reports which have been recently released claim that Apple has notified its suppliers of a drop in production levels, with some stating the drop could be as much as 50% of previously expected production (around 20 million units).
Such a drop, while potentially very significant to Apple's bottom line, would likely be offset by lower price point offerings such as the iPhone 8 and 8 Plus. That being said, part of the reason shares of Apple have soared in recent months has been directly linked to expected strength in iPhone X sales at the much higher price point; the success of Apple in being able to increase prices dramatically is one driver behind many growth assumptions as well as assumptions relating to margins and profitability long term.
Shares of the largest company in the U.S. have dipped more than 6% from their peak, providing an interesting situation for investors. Many will view this short-term weakness relating to the aforementioned rumors as a major buying opportunity, while others may want to take profit off the table here and wait to see how this scenario shapes up.
Invest wisely, my friends.