Apple is, however, warning that the expected production might be affected by the shortage of key parts.
Shares of American giant smartphone maker Apple Inc (NASDAQ: AAPL) continues to shrink as the fiscal year comes to an end. However, the company is optimistic its sales will rebound come 2021, thus prospects of future growth.
According to media outlet Reuters, the company plans to manufacture up to 96 million iPhones in the first half of 2021, a nearly 30% year-on-year increase.
Notably, Apple has a market valuation of approximately $2.08 trillion thus capable of delivering up to standard units if the demand rises in the coming quarters.
Apple Shares and Market Outlook
Despite the ongoing coronavirus pandemic, Apple shares have considerably thrived year-to-date. According to the market data provided by MarketWatch, Apple shares are up approximately 65.88% year to date. However, they have consolidated in the past three months, but are now down 1.59% in the past five days. At the time of writing, in the pre-market, the stock is 0.76%, trading at $122.70.
Apple has significantly shifted gears in the past few months to accelerate technology advancement amid an internal market reorganization. Apart from the share split during the past quarter, the company unveiled 5G enabled iPhones among other latest units.
As a result, Wall Street analysts are optimistic the company will rally next year if the current conditions prevail. Some of the fundamentals favoring Apple shares is the fact that it is a technology company that is delivering products needed through the pandemic. Although a viable coronavirus vaccine is expected sometime next year, remote working and schooling is expected to continue among most people. As a result, investors are betting big on Apple shares.
Apple is, however, warning that the expected production might be affected by shortage of key parts. Recently, the company announced that it will start producing its in-house chips, thus in a better position to plan its future.
Having been rated 40 times recently, Apple shares received an average of ‘Over’ rating.
Moreover, Apple recorded its best quarterly earnings results amid all market uncertainties. “Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” said Luca Maestri, Apple CFO.
Smartphone Global Industry
Apple is competing with other global leaders in the smartphone industry to deliver amid decreased global shipments.
According to market research firm Canalys, smartphone shipments will drop by 10.7 percent year-on-year (YoY) in 2020. However, the firm reported that it estimated the smartphone market to see a 9.9 percent growth in 2021.
With Apple seeking to reduce its product prices to remain competitive, its shares are more likely to have a productive year ahead.