Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Apple (AAPL) stock this year has been quite impressive as it has outperformed pretty much all others with significant growth. But a problem has emerged with the iPhone 11 screen, threatening this bull run.
As far as the stock market is concerned, Apple (AAPL) has had a pretty great 2019 so far. Already Apple’s stock has surged more than 43% this year alone, easily crowning it as the best performing stock in the Dow Jones Industrial average. Consequently, even though the Microsoft Corporation (MSFT) has a larger market cap, Apple has so far performed better and also beat out other FAANG stocks including Amazon, Netflix, Facebook, and Google’s parent Alphabet.
One of the major reasons ascribed to AAPL’s bullish outlook so far is the heavy anticipation for its recently released iPhone 11 series. The anticipation, coupled with the high post-release demand, has gone on to do wonders for the tech giant, wonders easily seen in its stock market trajectory.
Recently, T. Michael Walkely, an analyst with investment banking and financial services company, Canaccord Genuity, has made a bigger forecast for AAPL, raising its price target as much as $20 all the way to $260. This he believes would be easily achievable because according to him, records from the biggest telecoms services in the U.S. have all shown positive markers, all because of the new iPhone. In a recent note, Walkely said:
“Despite near-term headwinds from some consumer willingness to wait for 5G iPhones in 2020 and ongoing trade tensions with China, we are encouraged by the stronger than anticipated initial demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones.”
There’s a Threat
Last month, Apple officially unveiled the iPhone 11 series. As part of its description, the company said the phone has the “toughest glass in a smartphone” which was eventually put to test by numerous reviewers, as expected when a new device is released.
However, multiple reports have revealed that the phone’s screen is deeply flawed, and not nearly as strong as advertised. According to many users, the glass seems to be developing largely unprovoked scratches and smudges, which cannot be resolved. Some users have even said that the phone’s glass has somehow scratched right from the second day of purchase, from just being inside their pockets.
These complaints have been repeatedly posted on Apple’s own discussion page and running as long as 21 pages. Apparently, the screen problem is not one-off and is affecting a considerable number of people, with one comment specifically reading:
“My iPhone 11 looks worse after 1 week than my iPhone 7 did after 3 years.”
The general disappointment with the new phone could possibly be enough to put a dent in an otherwise fantastic year for Apple. Currently, many traders and analysts are waiting to see if this will happen or if AAPL will continue its upward trajectory. However, regardless of the looming possibility that the defect can steal Apple’s fantastic year, it is still expected that the forthcoming launch of Apple TV+ will either shore up any fraction that gets lost or simply make sure AAPL is a lot juicier before 2019 is over.