Apple Inc (NASDAQ: AAPL) stock has jumped by about 7.2% in the markets on Tuesday. This comes after the stock had faced a rough time at the markets due to COVID-19 issues. The Cupertino California giant has had it rough this year when it comes to the numbers. This comes as the big tech companies have been hammered recently.
Sources say iPhone sales fell to about 500,000 in February alone. This represents a decline of about 60%. It is far worse than the predicted 40%. Apple’s management realized that this year would be choppy as well. The company gave indications last month that it would miss its revenue targets this year. This was blamed on weakened demand from the coronavirus. Retail shops that were closed before are now reopened save for four of them.
Apple has also implemented human resource-friendly policies due to COVID-19. Employees who show similar symptoms to the virus get unlimited sick leave. This comes as one COVID-19 positive case has been recorded at Apple’s Ireland Campus.
Apple (AAPL) Stock May Bring New Opportunities
This doesn’t mean though that this is the beginning of the end for Apple. The price of selloff has lowered share prices. It is also a good investment at the moment. The world is settling down to the new realities that COVDI-19 brings. This brings new opportunities for investors now that the dust has settled.
Apple (AAPL) stock could be a good opportunity but only for those who get it right. This is neither investment advice nor anything of the sort. Analysts believe that the upgrade cycle for many iPhone users will serve as a balancing factor. This is because of the timeline of the upgrade window. This allows users to upgrade their older iPhones for newer ones. It also serves as a measure of the tech giant’s brand popularity on a global scale.
Disruptions to the global supply chain may not dim such expectations. This is because many analysts believe that coordinated responses will slow COVID-19’s effects. As such, the tech cycle of production will resume. Adjustments to the upgrade window may also occur. This won’t, yet, change much that is already on the ground.
Service Business May Also Provide Support
Apples’ services business could also provide a buffer against the losses made from the hardware business. Technology companies are seeing a jump in technology services. Apple isn’t left out of this phenomenon. Many analysts expect that the service business will produce more profits during this period of uncertainty.
The Chinese markets will also recover. The world will recover too. Solutions to COVID-19 will be found. Apple already has one factor going for it that other tech giants don’t: its loyal userbase. These set of people won’t for any reason change their loyalties. And that is why Apple has tremendous long-term potential.
As at the time of filing this report, Apple (AAPL) stock is at $278.08. This is a 2.54% drop in prices since the last trading session.