Apple has announced that it plans to keep its iPhone production roughly flat in 2022. Analysts see this as a conservative stance in the face of potentially slowing global growth. It plans to make 220 mln units which is down from the 240 mln expected. It is also down from the 2021 production levels reported to be at 233 mln.
According to Dan Ives of Wedbush Securities, he still sees Apple having a $200 price target. The current price is around $150. Does this mean that Apple’s strong seasonals can lift the stock over the summer months? Or will slowing global growth concerns pressure Apple Stock lower?
Over the last 10 years, Apple has only lost value once between June 01 and September 01. The average gain has been 15.85% profit and the maximum gain was -67% in 2020. The biggest and only loss during that period was in 2015 with a 17% loss. Does it make sense to buy Apple on these strong seasonals despite Apple’s conservative outlook?
Major Trade Risks: Any sign of slowing growth is likely to reduce demand for Apple products and could weigh on growth expectations.
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