Apple stock rebounds after new products debut

BY APD NEWSSep 14,2018 at 17:20

Apple Inc's stock has greatly rebounded after the mixed reaction to the new product release with its share closed at 226 US dollars apiece, up 2.4 percent on Thursday.

The tech giant introduced three new upgraded smartphone additions and watch series, namely iPhone XS Max, iPhone XS and the iPhone XR and Apple Watch Series 4 on its latest roll-out, which was held at Apple's headquarters in California on Wednesday.

Analysts' views vary on the sales prospect of Apple's latest technology lineup.

Goldman Sachs is reducing its earnings forecast for Apple due to the smartphone maker's new presented iPhones.

The firm lowered its fiscal 2019 earnings per share estimate to 13.77 US dollars from 14.53 US dollars and reiterated its neutral rating for the company's stock.

“Apple rolled out new iPhones as expected but the new ‘XR' model was priced lower than we had thought likely. This effectively obsoletes the stock-keeping units of two iPhone 8/8+ in our opinion and drives us to reduce our average selling price (ASP) and earnings estimates, offset slightly by a higher unit forecast," analyst Rod Hall said in a note to clients.

Nomura Instinet also retained its neutral estimates. Though the new models are priced beyond its expectation, the improvements of Watch are matched by the ASP increases.

The new iWatch released by Apple Inc on Thursday.

The product event largely met the expectations; however, the availability date for iPhone XR was a bit later but that won't bring much impact since early adopters will skew to the XS Max. The unit expectation for the next financial year remains unchanged and the ASP is expected to increase 6 percent year-on-year to 793 US dollars, Morgan Stanley expressed.

The launch will provide user with more choices. Based on this, it's recommended to own apple's shares for the long term, according to Piper Jaffray, a full-service US investment bank and asset management firm.

Apple shares are characterized by its remarkable performance this year. Last month, Apple became the first ever US listed company to exceed the market value of one trillion US dollars.

(CGTN)

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