Apple Share Price Forecast September 2021 – Time to Buy AAPL?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of American multinational technology company Apple (NASDAQ: AAPL) are in the green today, closing at $154.30 as of 7th September (7:48 am GMT -4). The company has recorded immense growth in its iPhone revenue last quarter, which has helped it to command higher prices from customers via its 5G smartphones. Apple is well on its way to take advantage of the higher volumes and improved selling figures that it has reported recently.
Apple – Technical Analysis
According to the financial statement released by Apple, the company’s market cap currently stands at $ 2.551 trillion with assets worth 329.84 billion. Revenue for 2020 was at $274.15 billion with a profit margin of 20.94% compared to $259.97 billion in 2019. The company has generated less than $20 billion in net revenue last year and earned another $64 billion from app store purchase commissions.
Moving averages for Apple such as Exponential Moving Average (10) (151.45), Simple Moving Average (10) (150.92), Exponential Moving Average (20) (149.80), and Simple Moving Average (20) (149.3) are pointing towards a buy action. On the other hand, oscillators such as Stochastic RSI Fast (3, 3, 14, 14) (81.51), Williams Percent Range (14) (−6.49), Bull Bear Power (5.97), and Ultimate Oscillator (7, 14, 28) (55.03) are overwhelmingly neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Currently, sales from the Appstore account for less than 7% of the company’s total revenue. The company’s operating profit margin, which was 78% in 2019, has been constantly expanding as the business scaled, reaching 24% in 2020. This indicates that the Appstore accounts for over 20% of the company’s operating income even though it is a source of single-digit percentage revenue for the company. Apple has announced that it will allow reader apps to direct users to their own website to subscribe for an app rather than subscribing from within the app from 2022. Reader apps include any applications that provide content subscriptions or previously purchased content for music, audio, video, newspapers, and digital magazines.
Apple also released impressive fiscal third-quarter results where it reported $39.6 billion in iPhone revenue last quarter. This dwarfed the company’s overall top-line growth of 36% as it experienced an increase of 50% from the year-ago period. The iPhone also accounted for 48.5% of the company’s total revenue last quarter, compared to 44.2% a year ago.
The growth in the company’s iPhone revenue indicates that it generated more revenue per unit compared to the last quarter. Considering all the figures, Apple’s iPhone’s average selling price(ASP) increased by a whopping 27.5% year over year. According to several consumer intelligence research partners, Apple’s iPhone 12 series accounted for 61% of total iPhone sales in March, propelling it ahead of other 5G smartphone makers such as Xiaomi.
Should You Buy AAPL Shares?
While the big jump in average selling price is certainly good news for investors, they should note that the company did not have any 5G phone on offer in last year’s June quarter. This could explain the reason behind the company’s massive ASP increase as this quarter saw the release of the new iPhone 12. The quarter-over-quarter increase of Apple’s ASP indicates that customers opted for the new iPhone 12 more compared to the company’s lower-priced options. It also is an indication of the company’s growing customer base despite the presence of cheaper options from other Android makers and OEMs. All of this has helped Apple churn out significant volume despite its premium pricing.
Additionally, the company has a large base of existing users who are yet to upgrade to a 5G device. There are hundreds of millions of users to whom Apple can sell a 5G smartphone, considering that the company had an installed base of more than 1 billion devices earlier in 2021. All of these indicate that Apple is one of the best 5G stocks that investors could add to their portfolios at the moment.
Buy AAPL Stock at eToro from just $50 Now!
