Based on 28 Wall Street analysts’ 12-month price forecasts for Apple in the last three months. The average price estimate is $181.68, with a top of $220.00 and a low of $136.00 expected. The average price prediction reflects a 22.73% increase over the previous price of $148.03.
Apple (NASDAQ: AAPL) now has 16,070,752,000 shares in circulation. With Apple stock trading at $147.27 per share, the entire market capitalization of Apple stock is $2.37T.
The 52-week high for Apple (NASDAQ: AAPL) was $182.94, and the 52-week low was $129.04. It is now -19.5% lower than its 52-week high and 14.13% lower than its 52-week low.
According to experts, Apple has had a record-breaking year, and it looks like the positive trend will continue. The company has posted its annual financial results, showing record revenues of $83 billion, up 2% from last year.
The number of active Apple devices “across every geographic segment and product category” has increased to an all-time high. However, customers may be waiting for the company to release new devices this fall, in addition to waiting out the ongoing inflation so that they can make a purchase.
Apple’s CEO Tim Cook made the following statement., “This quarter’s record results speak to Apple’s constant efforts to innovate, advance new possibilities, and enrich the lives of our customers.”
In addition, CFO Luca Maestri said, “Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment.”
According to Cook, the iPhone had a “June quarter record for revenue and switchers to iPhone” during the company’s earnings call. Year-over-year iPhone sales did increase, from $39.6 billion to $40.7 billion. Apple CEO Tim Cook was recently asked about the effects of inflation on consumer spending. “Mac and iPad were so gated by supply that we didn’t have enough product to test the demand.” However, “we did some impact there that we would attribute to the macroeconomic environment” for the categories of clothing, furniture, and accessories, he said.
Furthermore, he stated, “the iOS app economy supports over 2.2 million jobs here in the US and many other countries worldwide.” According to Cook, Apple stopped “over 1.6 million risky and vulnerable apps and app updates” and “nearly $1.5 billion in fraudulent transactions.” “Despite supply constraints,” Maestri said of Macs’ $7.4 billion sales he added.
What to anticipate from Apple stock (APPL) in the fourth quarter?
Apple (NASDAQ: AAPL) has witnessed a significant share price increase in 2022 as a result of increasing inflation and interest rates. The company, on the other hand, is continuing to innovate and produce new hardware, with the next iPad Pro launch only days away, and plans to introduce a Google Tablet-like home hub.
Furthermore, while noting mounting obstacles to consumer and industry spending, Morgan Stanley (NYSE: MS) declared Apple their top selection on October 17. Morgan Stanley analysts cited various difficulties affecting the hardware industry, including sky-high inflation, which makes forecasting even more difficult.
AAPL graphs and analysis
When the annual performance of all stocks is compared, AAPL is one of the best-performing companies in the market, exceeding 72% of all stocks. Shares are trading towards the bottom of their 52-week range, below all moving averages, with price action forming a bear flag pattern, perhaps foreshadowing more decline.
According to technical analysis, a support zone exists between $139.43 and $139.53, while a resistance zone exists between $145.44 and $148.66.
Analysts rank the stock as a strong buy,’ with a 12-month average price of $181.93, or 27.75% higher than the current trading price of $142.41. Notably, 23 Wall Street analysts rate the stock as a ‘buy,’ four as a ‘hold,’ and one as a sell.’
Apple’s earnings report is scheduled on October 27; any deterioration in sales or a reduction in full-year projections might cause the stock to continue its downward trend.
A favorable surprise may not move the stock much, given markets seem to be anticipating another Federal Reserve (Fed) rate increase and potentially fresh inflation data.
According to the Stock Forecast, the Well-known It Company Is Well-positioned to Rebound From the Market Downturn Anticipated in 2022.
In this quarter, more than half of all subscribers became iPad users, marking a new record for the install base. However, while wearables brought in $8.1 billion, that’s down 8% year-over-year “as we faced foreign exchange headwinds, different launch timing for home and accessories products, supply constraints, and the overall macroeconomic environment,” Maestri explained.
Despite this, a new benchmark for the “installed base of devices in the category” was achieved by the company. Maestri also mentioned that over two-thirds of first-time customers purchased Apple Watches during the quarter. With more than 860 million paying customers, Apple’s paid subscription services saw strong success.
However, this company can withstand the current economic storm and remain a sound investment for the long term for at least three more reasons.
1. Apple’s goods keep customers coming back for more.
For a corporation known for introducing personal computers and the iconic iPhone, it’s hardly surprising that it makes most of its money from these items. Over 60% of Apple’s $97.3 billion in revenue in the second quarter of fiscal 2022 came from Mac and iPhone goods.
Apple’s primary source of revenue is the iPhone. At $50.6 billion, iPhone sales accounted for more than half of Apple’s revenue in the second quarter of the fiscal year. Apple’s iPhone development initiatives have what it takes to keep this boom going, as they have for years.
Mobile phones that enable the new, more powerful 5G wireless networks are now being adopted by consumers. iPhone sales increased by 39% in fiscal 2021 after declining by 3% the year before, thanks in part to the company’s announcement of 5G-capable models in the autumn of 2020. In addition, the business is introducing smaller and less expensive versions to capture hitherto untapped markets.
As inflation rises and the possibility of a recession grows, I wouldn’t be surprised if iPhone sales take a dip in the near term. As 5G adoption increases from 8% this year to a projected 25% by 2025, Apple’s iPhone sales will continue to rise, ensuring the security of Apple’s main revenue stream.
2. Apple is much more than a hardware manufacturer.
If you think Apple will be damaged by inflation, you’re right. If Apple’s prices continue to rise, some buyers may decide to put off purchasing the company’s newest products. It’s also a software and services firm. The company has discreetly constructed subscription-based software services over the years, generating recurrent income via subscriptions.
This includes AppleCare, digital payments, cloud storage, advertising, and subscription to music, movies, TV shows, and video games, all of which are part of Apple’s services section. These revenues have consistently increased throughout the years, increasing from $46.3 billion in fiscal 2019 to $68.4 billion in fiscal 2021 for this section of the corporation.
Last year, Apple’s new ad regulations boosted the segment’s advertising income significantly. It’s now possible for customers to restrict third-party applications from displaying advertisements to them. Facebook parent Meta Platforms, for example, witnessed a huge drop in iPhone app income due to this shift. As a result, Apple profited from shifting advertising dollars to its goods.
Additionally, service revenue growth is being driven by cloud subscriptions. Consumers must have a location to keep their digital items, such as images shot on their mobile phones. Using Apple’s cloud is the answer. For Apple, this means a steady income stream that isn’t affected by macroeconomic factors like removing hundreds or even thousands of images and other files in our cloud accounts.
3. A self-sustaining ecosystem has been established by Apple.
Another incentive to put money into Apple is the symbiotic relationship between the goods and services that it has established. It is possible to use Apple’s cloud to automatically back up an iPhone’s content or stream movies from an Apple TV device linked to television.
Customers become more dependent on Apple goods and services because of this interaction, which raises Apple’s income from subscriptions and product purchases. A combination of in-house R&D and acquisitions—Apple has acquired more than 100 firms in the last two years alone—will continue to grow this ecosystem.
Among other things, Apple’s constant drive to improve its technology is one of the reasons the company spends so extensively on R&D and has so much cash on hand. The corporation had $28.1 billion in cash and equivalents at the end of fiscal Q2.
However strong it may be, even Apple is vulnerable to macroeconomic forces. Short-term losses are to be expected for investors. The strong U.S. dollar might hurt Apple’s fiscal third-quarter revenue since more than half of its net sales originate from outside the Americas.
However, long-term investors may sit back and collect dividends from Apple shares as they wait for the macroeconomic storm to subside. A meager 0.65% of IT companies pay dividends at the time of this writing, but that doesn’t mean they’re doing anything wrong.
While inflation, supply chain issues, and other macroeconomic concerns may make for a bleak image in the short term, investors who keep Apple stock for the long term will be pleased.
Apple stock forecast is positively impacted by Apple Live caption and other new features to help users improve accessibility
Known for its innovative technology, Apple recently announced a new set of accessibility features for its computing platforms. Relevant software updates for iPhone, Mac, iPad and Apple Watch are expected to roll out in the latter part of this year. Live Caption feature is among the most expected features in this new features wave.
As per the sources, Apple is expected to soon launch its Beta test for Live Captions that will be able to transcribe any sort of audio content in real time. The feature will be available for FaceTime calls, streaming videos, video conferencing (and the ability to identify the speaker), and even in-person conversations.
Initially, the feature shall be rolled out only for English across all of Apple’s major products, such as the iPhone, Mac, and iPad. Previously, a similar push for the Live Captions feature was introduced by Google during the Android 10 release. Presently, this feature for Pixel 6 and Pixel 6 Pro is also available in additional languages.
The Beta version is to be launched in the US and Canada later this year. IPhone 11 and later sets shall be eligible for this feature along with Macs equipped with Apple Silicon CPUs and A12 Bionic CPU-equipped iPads.
Apple says it is committed to keeping the information private by directly generating these captions on users’ devices. Stock analysts liked this feature increasing Apple’s stock forecast for the next 12 months after these have been announced.
Similarly, Apple is making efforts to make Apple watches more user-friendly for users with motor and physical disabilities by introducing new mirroring features. This will be done by allowing disabled individuals to access a range of features without having to tap on the screen.
Another exciting feature is “Buddy Controller” which allows combining two game controllers to let a friend help someone in playing a game. More information will also be available at live sessions held by Apple stores.
How Has AAPL Performed in Recent Months?
Analysts are optimistic about Apple’s future, as its performance in the last quarter beat Wall Street’s expectations for the second year in a row, beating both sales and earnings. Apple’s revenue increased nearly 9% in the three months of March.
Apple has been an excellent investment over the past five years. That excludes six stock splits that saw Apple’s shares rise from $22 to $178.96 at the close of the market on March 29, 2022. As a result, apple’s share price has increased by 25.3% over the past year. However, the stock’s performance year-to-date has been inconsistent.
The price of shares has dropped by more than 17% in the wake of Russia’s invasion and fell to $150 on March 14. Since then, investors have changed their outlook. Shares are up 18% in the wake of peace talks and other positive developments.
The majority of one-day AAPL technical indicator data were biased towards the “sell” side when writing. The Relative Strength Index (RSI), 33.1, is outside the negative zone. A reading of 30 or less is necessary for an item to be undervalued.
The positive factors affecting the Apple stock forecast
Strong Quarter4 Results: Apple Inc reported excellent Q4 results; revenues grew 11 percent YoY to $123.9billion. Additionally, earnings increased 25 percent to $2.10 per Share (Beat expectations).
Sales of iPhones jumped 9 percent to $72 billion, the Mac business sales increased by 25%, and Apple’s service sector rose 24 percent, thanks to paid subscription through its app.
Apple has 785million paying members, with 165 million in the last year. Gross margin grew to 43.8 percent, an increase of 39.8 percent from Q1 2021.
Robust Smartphones are in High Demand: Smartphone industry was worth more than $270 billion in 2013 and is expected to grow at 7.6 percent annually.
Apple held 17.5 percent of all smartphones worldwide in 2021, compared to 16 percent in 2020. This figure rose further in the case 5G, where Apple controls approximately 28 percent of all phones worldwide.
Purchase back of shares and excellent dividends: Apple’s free cash flow in the past four quarters has exceeded $100 billion. Surprised, it paid its shareholders $14 billion in dividends last year.
Apple initiates frequent repurchase programs, enhancing shareholder returns by lowering free-floating shares. As a result, apple held 22 billion shares in 2017, and at the end of the fiscal year 2021, 16.86 claims remain. That indicates that every shareholder’s ownership share has increased proportionally over the past five years.
Please keep it simple: Apple isn’t launching new products every few years, and the management is sticking to the basics. However, the company has free cash flow, which allows it to reinvest in and develop goods and services that increase its revenues through increased sales.
Apple spends a large percentage of its sales on R&D, which was $23 billion last year. We may see a breakthrough device soon.
The negative factors affecting the Apple stock forecast
AR/VR Headsets will not contribute to revenue in the coming years: It is excellent news that Apple has announced AR/VR headsets based upon metaverse technology. They are expected to be available in the second half of 2022 and 2023.
The real question is whether the headset will be able to contribute to the balance sheet’s revenue over the next few years. The watch will cost more than the headgear at $1000, adversely impacting its sales in the first years. It is expected to make a negligible contribution to revenue, at least until 2026. Headsets will be unable to find a place between AirPods and watches.
Wrong Local and Global Cues: Apple Inc is a fantastic company with excellent financials. Investors have been focusing on growth equity recently due to concerns about inflation in the US. Many are anticipating a recession, which may, in turn, dampen Apple’s demand.
Apple October event: Macs, iPads, and everything we expect to be announced after the iPhone 14 and Watch
We may anticipate Apple to introduce new iPads, Macs, and the like in addition to the iPhone 14 and Watch during their October presentation.
The next Apple event will be the company’s most significant of the year, introducing four new iPhone 14 models and three new Apple Watches.
However, speculations suggest that it will host another major event only a few weeks later.
Everything Apple wanted to discuss during its September Apple event but ran out of time for or was not quite ready to roll out would likely be discussed at that event.
This is everything that will occur during that event in October. (Both the September event and the iPhone 14 have been the subject of speculation on this site.)
iPads
Nothing indicates that Apple’s iPad won’t be the main attraction during this year’s October event.
Since it was released about 15 months ago, the iPad Pro has become obsolete due to its usage of the M1 CPU. So, the new M2 and other improvements will likely be included in a forthcoming tablet.
Macs
The iPad isn’t the only popular device that has people pining for an update; many PCs also need the M2 patch. Consequently, a new version of the Mac Mini, which is now powered by the M1, and other upgrades are planned to be released by Apple.
Possible candidates include the first machines to use the M2 Pro or M2 Max, which are enhanced versions of the original M2. New MacBook Pro 14- and 16-inch versions are expected to have them.
This rollout plan would be similar to the M1 rollout. It was initially seen in the MacBook Air and Mac Mini before Apple revealed larger and more powerful versions in larger and more powerful computers.
Software Upgrade
Apple often releases the next macOS version in October, and the live-streamed event might be a great time to reveal the release date.
Apple might potentially opt to reveal when iPadOS 16 will be available this year. In the past, both the iPad and iPhone software upgrades were released in September, but this year, the iPad update has been delayed.
Given the anticipated spotlight on the iPad, delaying the announcement and availability of such software until the October event makes the most sense.
Premium AirPods
The iPhone event is expected to include these.
However, they may be pushed back to October if they cannot complete the necessary runtime or are not yet ready.
Augmented Reality
We’ll keep asking at every Apple presentation whether we’ll get a glimpse of the augmented reality headgear until we get our wish. Then, unfortunately, the same old nay will probably be spoken again.
Apple still has a lot to say, even without the iPhone and Apple Watch, and the company will likely do so as the holiday shopping season approaches.
Apple Stock Forecast: Conclusion
Apple Stock Forecast is positive mainly because the company invested a lot in research and development to retain their loyal customers. As a result, analysts expect it to increase by 15% in the next five years, which will result in profits per share rising from $5.61 up to $35.
If the stock trades at 28 times earnings, it could rise to $980 in the next ten years. So while global indicators might not favor a bullish market right now, long-term investors should not be worried and keep Apple Inc. on their watch list despite any concerns.
Wallet Investor made strong long-term projections for Apple stock, predicting that the share price will approach $305 by April 2025.