Apple will report its fiscal quarter results on April 30, but industry analysts are already beginning to discuss on the sidelines how the coronavirus could affect the company's business in the medium term. Many agree that it will not be possible to release new iPhone models for 5G networks by September.
In informal comments, Apple contractors are trying to convince the press that there have been no downward adjustments to orders, and if necessary, the rhythm of the release of new iPhone models can be maintained at the level of previous years. On the other hand, Apple itself is transferring employees in the United States to remote work, and business trips are being disrupted due to border closures due to the pandemic. This could negatively affect the process of preparing the so-called iPhone 12 for announcement.
Now Apple shares are trading at $266 per share; with the onset of the epidemic in China, they inevitably fell in price, because the coronavirus outbreak could not only reduce iPhone production volumes, but also limit sales volumes - not only due to the temporary closure of stores, but also the deterioration of the economic the situation as a whole. Wedbush Representatives that the chances of shifting the announcement of iPhone models with 5G support to October or December reach 10β15%. Investors will be looking for any signals in this direction that may come from Tim Cook at the April 30 quarterly earnings call. On the other hand, they believe that Apple's stock price will be able to rise to $335, and negative expectations due to the delay in the release of new iPhones have already been taken into account in current quotes.
Experts also call $335 as a target for Apple's stock price, but in this case they lower it from the level of $350. According to the authors of the analytical note, in the midst of the coronavirus pandemic, consumers have little interest in buying smartphones, so the companyβs revenue for the reporting period should decrease significantly. Buying activity, in their opinion, will recover only by the end of the third calendar quarter. JPMorgan experts are convinced that Apple will delay at least half of the 5G iPhone models due out this fall by a couple of months.
Analysts raise the forecast for the stock price from $260 to $300, based on the results of a sociological survey among a young audience. Among smartphone users under 20 years of age included in the sample, 85% already own an iPhone. The Apple Watch was named by respondents as the most popular product in its category. The authors of the survey identified Apple AirPods wireless headphones as the most promising products in terms of sales growth potential.
Source: 3dnews.ru