Lots of investors had given up on Apple a year ago when its stock price took a fall of 30% from the peak it had reached in 2015. The once unstoppable growth of the company came to a halt as there was a 13% decline in the number of iPhones sold and the company’s revenue declined for the first time in 13 years. While the business hasn’t picked up, investors seem to have changed their mind, including the tech-averse Warren E. Buffet. By market value, Apple Inc. is the most valuable company in the United States and its shares seem to have reached new highs this year.
As opposed to last May, the company’s stock price showed an increase of 60% and reached $143.65. According to experts, the rise has been driven primarily by hope as the tech giant’s 10th anniversary of the iPhone introduction draws near. People are hoping that the iPhones to be introduced in September will be innovative enough to prompt existing iPhone users to upgrade and would be dazzling enough to convince users of Android phones made by Huawei, Samsung and other manufacturers to make the switch. In essence, people are expecting Apple to cure cancer with its new iPhones or something of that ilk.
The Cupertino, California giant will be disclosing results of its financial quarter that ended in March on Tuesday and these results would provide clues to investors about the firm’s performance and its future. Analysts are expecting Apple to report a slight increase in overall revenue and iPhone sales. There are some who don’t believe that Apple is going to shake the industry and expect the firm to simply churn out incremental improvements like the elimination of the headphone jack in the iPhone 7. But, since it’s the 10th anniversary of its iconic phone, more exciting updates are being expected.
Some of them include a high-resolution screen that will cover the entire face of the phone. However, the tech giant has also suggested that a lot of its future growth will stem from services like Apple Pay, Apple Music and the cut that it gets from the sales and subscriptions of apps in the App Store. Some missteps have also been acknowledged by Apple executives, who often describe their products with the term ‘revolutionary’. After watching the unit sales of the iPad spiral continuously for 12 quarters, a cheaper model was introduced by the company in March and the target audience were schools.
It was also admitted by the smartphone giant that the Mac Pro’s striking cylindrical design reduced the upgrade potential of the device. Therefore, a redesigned version is expected to be released. As far as investors are concerned, they are relieved that the drop in sales seems to have stabilized and there is increased confidence about the future of the company. Purchases of the iPhone are likely to rise this year due to expectations of major changes and improvements in the device, much like in 2014 when big screen models were introduced for the first time.