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Apple (AAPL) stock rose by $21.06, or 8.72%, to clinch slightly above $262 on Monday. According to leaker Jon Prosser, Apple is set to release a new 13-inch MacBook Pro in May.
When the market bell rang on Monday, Apple Inc (NASDAQ: AAPL) stock was moving up from the previous week’s low $235 to trade at slightly above $262. As of Monday evening April 6, the stock had risen by $21.06, which reciprocated to 8.72%. Today in the pre-market, the stock is also up. It is rising by 2.22%. It is worth noting that since the free fall that began after the outbreak of novel coronavirus, this is the second notable bull run. One of the possible reasons for such a move is the expectation of a new Apple MacBook Pro.
It is a positive note to start the week and also the second quarter of the year, even as the effect of the coronavirus continues being a scare to the stock market in the future. At the time of writing, the coronavirus has infected over 1,300,000 people worldwide, which raises the fear of a continued effect even in this quarter and maybe the next.
Apple has been adversely hit by the coronavirus both directly and indirectly. The direct one is by the fact that the disruption of the supply chain in China will delay most of its scheduled launch. Although China has partially opened up the country, there are still fears that the virus may reappear once more, since it has not been eradicated from other parts of the world.
The daily operations of the company have significantly reduced with time, whereby even affecting the suppliers’ business. The New York Times reported that sales at Taiwan’s Hon Hai Precision Industry, Foxconn, which is a major supplier of Apple electronics, were down by almost 8% by March. Earlier, it was reported that the launch of the 5G iPhone will be delayed by months due to the coronavirus crisis.
However, despite all the challenges being faced by the company, its stock has bounced up with a notable percentage.
New MacBook Pro as a Possible Reason for Rise in Apple Stock amid Coronavirus
The stock market has been reacting negatively to the ongoing coronavirus outbreak that has marveled even the superpowers. The stock market is almost being brought to its knees if the situation is not under control by the end of the next quarter. Most of the government assistance will start depleting since the resources will get stretched to the limit.
In order to keep up with the changing environment, Apple is using different tactics to keep afloat. One of the moves, according to the leaker claims, is the fact that the company is preparing to refresh its MacBook Pro 13-Inch in May 2020. It is expected that the company designers have put a 14-Inch screen all without altering the overall physical size.
“While launching a mid-cycle entry-level smartphone into the backdrop of consumer global lockdown and unprecedented pandemic will be a head-scratcher to some, Apple is viewing this as a low-volume, low-touch release with little fanfare as the phones are already ready to ship.”
Whether it is a good period for launching new products (or updated versions) is a very controversial question. However, only the time will show who will be the winners in such a situation.