Apple shares rose 1.44% after breaking the trillion mark and reaching an all-time high

0
234

[Abstract] The increase in orders for the iPhone 11 series confirms Apple CEO Tim Cook’s new strategy of attracting budget-conscious consumers with low-cost models at a time of global economic weakness.
On October 11, Tencent Technologies News reported that Apple’s share price rose 1.2% to $233.03, a record high with a market value of $1.05 trillion.
Since then, Apple’s market value has risen for several days after news that market demand has exceeded expectations, pushing Apple to increase its production of the 11-series mobile phones by 10% on October 5, again exceeding the $1 trillion threshold, bringing Apple’s market value to a record high.
The new strategy of Tim Cook, Apple’s chief executive, is to attract budget-conscious consumers with low-cost models at a time of global economic weakness. The increase in orders came mainly from the cheapest models of the iPhone 11 and the iPhone 11 Pro; Apple slightly lowered its expectations for Pro Max orders.
The performance of the iPhone 11 series after its launch has also led major investment banks to adjust Apple’s target share price. Analysts at J.P. Morgan Chase, an investment bank, raised Apple’s target share price in a research report released earlier this week, saying that the new iPhone product line “deliveries exceeded expectations” would boost the company’s share price by 21%. “We have moderately raised our forecast for the sales of the iPhone, and we expect investors’sentiment on Apple stock to improve substantially. Although Apple’s product cycle in 2019 is generally considered moderate, the company has the ability to boost sales expectations, “Samik Chatterjee, an analyst at JPMorgan Chase, said in a research note. In the research paper, the analyst raised the stock price of Apple from $243 to $265, maintaining the “overweight” rating. JPMorgan Chase currently expects Apple to ship 1 million more iPhones in the third quarter than previously expected, and 3 million more in the fourth quarter than previously expected.
In addition, UBS said in its latest research that the demand for the iPhone is “very decent” and that the demand for the latest version of the product “looks strong at least in the United States”.