24/7 Wall St. Insights
- Some analysts believe that investors could overreact to iPhone 16 sales and make an ill-informed buying decision about Apple Inc. (NASDAQ: AAPL) stock.
- Also: Dividend legends to hold forever.
Sales of the new Apple Inc. (NASDAQ: AAPL) iPhone 16 may be slow. They may not be slow. They may be slow in China, but they may not be. People will wait to buy an iPhone 16 until the new AI features iOS 18 comes out in October. Some people will buy the smartphone and wait to download iOS 18 later.
Some analysts believe that investors could overreact to iPhone 16 sales and make a buying decision about the stock that is ill-informed. In a note to investors published by CNBC, UBS analysts wrote, “While we still argue the collection of iPhone/iOS attributes are more evolutionary than revolutionary, we caution that investors not overreact to data that suggests somewhat initial tepid demand.” It is tempting to ignore that every time a research firm or Wall St. firm publishes data about how many iPhone 16 models were sold or how long the lines at Apple stores are.
The early iPhone sales game has been around for years. Analysts then looked at how long lines at Apple stores were. For some early iPhones, people slept in line overnight. Apple ran out of parts for the brisk demand in more than one case. That distorted how many early customers there were
Analysts have often examined the features of new iPhones to see if they were significant upgrades from earlier versions. Reportedly, most changes were in camera quality, battery life, and chip power. While these upgrades may have been modest, demand for each generation has been strong right after the new iPhone hit the market.
In the past month, Apple’s shares are close to flat and the S&P 500 is up slightly less than 2%. What does that mean? Maybe nothing.
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