Positive News for Apple as Stock Rebounds After 5 Days of Massive Dips

Finally, some good news for Apple after its surprise five-day losing streak came to an abrupt end, closing the chapter to what has been a tragic week seeing the company lose a massive 10% of its company market value.

Indeed, on Thursday last week, the company’s shares surged by more than 2%in the late afternoon after trading.

A Dip in Its Stock Price

That being said, the stocks experienced a tumble this month as a result of the massive growing concern regarding the slowdown in the phone’s latest release of its iPhones.

Indeed, the interest has dipped by 20% from its initial high.

In a press statement, Apple informed investors regarding its recent earnings. That being said, their latest move to desist from providing its sales figures for its devices such as the iPhone created massive speculation regarding whether or not the company’s sales could have peaked.

To worsen the situation, a number of companies in charge of manufacturing a number of iPhone components such as chips predicted a lower forecast for the company, pitting sluggish demand as the main reason for their prediction with these high-end phones.

Indeed, several analysts have further announced earnings and price targets estimates for Apple that have not been in the favor of the company for the past couple of weeks.

This has caused increasing concern that the predicted soft sales for Apple may be damaging the overall digital sales of the company.

Apple has made the decision to no longer reveal its iPhone sales to the public

Losing out on the Third Position in the E-commerce Platform

In fact, in a recent report released by eMarketer, a research firm, it predicts that Walmart might just surpass Apple and clinch the number 3 spot as the third largest e-commerce firm in America.

This comes as they predict that Apple’s sales growth will experience a relatively slow forecast.

Indeed, both companies are far behind eBay and Amazon.

That being said, one influential Wall Street analyst has strongly come out to defend Apple.

As a matter of fact, analyst Katy Hubert of Morgan Stanley boldly wrote down in a report that the current ‘supply chain ruckus regarding Apple suppliers was actually opening up a massive traction to buy the company’s stock.

Indeed, Huberty believes that investors are overthinking all the soft warning flags that are being thrown about by other component companies, causing them to have a narrow focus on their current unit sales.

She believes that investors are failing to remember that Apple’s service business, which factors in features such as Apple Pay, Apple Music, iCloud, and App store, has been improving rapidly when compared to other factors of Apple’s business model.

Indeed, the service division generated about $10 billion in sales sometime the previous quarter.

It’s only when businesses begin to look into factors such as recurring subscription revenue features, is when they begin to see the profit margins that Apple has as compared to simply looking at it from a linear point of view. That is, analyzing the relatively slim margin of only selling hardware and other materials that were part of the phone structure.

Apple’s stock is experiencing a rebound after 5 days of negative dip

Why Did Apple Stop Releasing Its iPhone Sales to the Public?

For years, iPhone has been revealing to the world the number of Mac computers, iPads, and iPhones that have been sold. As a matter of fact, this became a standard for the company to demonstrate how popular its products were to the public.

Unfortunately for the public, these numbers will now be confidential.

Indeed, its stock was severely affected after the announcement, with the company’s CFO Luca Maestri stating that the decision to scrape out this part of its reporting structure was as a result of the new features that the company was having with its line of business.

In a statement, Maestri said that the having a unit of sale as part of their business structure has become quite irrelevant, primarily because of the breadth of portfolio, as well as the company possessing a wider sales dispersion from any product that they have.

CFO Luca Maestri has insisted that the company will no longer reveal iPhone sales as a unit sale is no longer pertinent to their business structure

Indeed, Dan Ives, one of the analysts tied to Wedbush securities, addressed Apple’s decision to desist from revealing its iPhone sales, referring to the situation as a tough pill to swallow.

Indeed, the decision to desist from reporting unit sales has also been viewed by Apple analysts that the company has seen that its iPhone sales are poised to decline.