There have been very few times in the last several years that owning Apple stock hasn’t been a financially rewarding endeavor. Those who were lucky enough to buy in before 2010 have enjoyed a tremendous return on their investment but as the saying goes, what goes up must come down.
Apple stock value topped $700 per share briefly in September 2012 as investors and consumers alike were anxiously awaiting the announcement and arrival of the iPhone 5. Yet despite strong sales of the latest generation handset, a revised full-sized iPad and a new iPad mini, Apple’s shares are down 22 percent over the past three months - sitting at just $489.29 as of writing.
The Wall Street Journal published a report over the weekend claiming that Apple is reducing orders for parts to build the iPhone. Some sources told the publication that Cupertino was slashing some orders in half for the current quarter.
Since then, multiple analysts have weighed in on the situation with many coming to the conclusion that a reduction in component orders likely means that Apple has improved yields. This means that the company is more efficient when building phones and not having to toss out as many faulty parts.
Apple’s stock outlook for the next 12 months is still very solid. Shaw Wu from Sterne Agee believes that Apple is a “buy” and that share value could hit $840 by this time next year. Baird analyst William Power is hopeful as well, noting that Cupertino could reach $750 per share over the next 12 months.
If these analysts are right, perhaps investors should view the latest stock slump as a sale and invest heavily while prices are low.
The Apple iPhone 5 is the latest flagship smartphone from Apple. The iPhone 5 features a 4-inch display retains the same 326 PPI density as its predecessor with an effective resolution of 1,126 x 640, and a new Lightning connector. The new handset now features 802.11a/b/g/n Wi-Fi with 802.11n supporting dual-band 2.4GHz and 5GHz frequencies. Bluetooth 4.0 is back in addition to GPS and GLONASS for location services.
The iPad mini is a smaller version of the iPad and it’s much more than just a shrunken-down iPad. The iPad Mini packs a dual-core A5 processor, dual-band 802.11a/b/g/n Wi-Fi, a FaceTime HD camera, 5-megapixel rear iSight camera with 1080p recording and an optional LTE radio. The Mini sports a 7.9-inch display and 1,024 x 768 resolution. Battery life is estimated at 10 hours.
The 4th generation iPad sports a beefier A6X processor for double the CPU and graphics performance (versus iPad 3), an improved FaceTime camera that supports 720p resolution, the new Lightning connector, 802.11a/b/g/n dual-band Wi-Fi and the same image signal processor found in the iPhone 5.
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