Apple Vision Pro Wows Consumers, But High Price To Limit Demand Investor’s Business Daily

The bank said investors should have largely moved past concerns about iPhone sales weakness, with recent data points such as Apple rising past Samsung to become the global market leader in smartphone shipments offering encouragement. But a 13% year-over-year decline in Apple’s China sales overshadowed the results. Apple reported China revenues of $20.8 billion, well below analyst estimates of $23.5 billion. The CEO notes Apple saw solid growth on upgraders year over year in China mainland and its products represented four of the top six smartphone models in urban China in fiscal Q1. Apple offers an expansive ecosystem of tightly integrated hardware, software, and services, which locks in customers and generates strong profitability.

Apple’s revenue for its most recent quarter rose 2% from the same time in the previous year to $119.58 billion. The company earned $33.92 billion, or $2.18 per share, a 13% gain from the same time last year. Profit results should have a bigger impact on Apple’s stock price than revenue, according to a recent note from JPMorgan. Apple stock rose 1.1% to $186.49 Thursday afternoon ahead of its first-quarter earnings report. Apple has already reportedly sold more than 200,000 Vision Pro headsets. Those curious to try out the device without paying for it can go to participating Apple Stores starting Friday for first-come-first-serve demos.

Apple’s revenue in China dropped 13% from the previous year to $20.82 billion. Wedbush analyst Dan Ives said Apple will likely beat its first-quarter revenue and profit estimates on Thursday even with growing investor concerns about its iPhone sales. According to 35 analysts, the average rating for AAPL stock is “Buy.” The 12-month stock price forecast is $200.56, which is an increase of 6.38% from the latest price.

  1. He envisions Apple coming out with a $2,000 version of the device in 2026, leading to sales of 4 million units that year.
  2. Wall Street analysts say the innovative new device is a positive for Apple’s brand but sales are expected to be limited by its high price.
  3. While it has been consistently generating double-digit revenue growth, Apple’s services division is under legal attack.
  4. Apple’s iPhone sales in China have faced several headwinds in recent months as weakness in the Chinese economy has become more apparent, and that could have an impact on Apple’s first-quarter results.
  5. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

Meta Platforms stock rose sharply in late trading Thursday after the social media company gave a better-than-expected revenue forecast for its March quarter. “Meta’s report allayed concerns around a 2024 deceleration … and also demonstrated sound capital allocation (new $50 billion share repurchase plan and quarterly dividend). Importantly, Meta’s investments in capex are also being met with clear returns, as evidenced by atypically strong first-quarter guidance,” Patterson wrote.

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Meta’s board of directors also declared its first-ever dividend, $0.50 per share, payable on March 26, 2024. Sales in the rest of the Asia Pacific region were $10.2 billion, up 7%. The company noted that the latest quarter was 13 weeks, while the year ago period was apple price quote 14 weeks. Tech companies that don’t pay dividends have historically said it’s due to prioritizing spending elsewhere – around areas of growth. Meta’s new dividend could broaden Meta’s institutional ownership to investors who want or need dividends in their holdings.

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After Apple’s first two-for-one stock split in June 1987, shareholders received two shares at a stock price of $41.50 each for their stock which had closed the previous day at stock price of $78.50. On December 12, 1980, Apple stock began trading on the Nasdaq at  $22 per share. Steve Jobs, the largest shareholder, made $217 million on the first day of trading.

More people than ever are upgrading their iPhones.

By the end of trading on that Friday afternoon, Apple’s stock price had risen by almost 32%, closing near a stock price of $29 and resulting in a market value of $1.778 billion for Apple. Meta reported fourth-quarter adjusted earnings per share of $5.33, which was ahead of Wall Street’s consensus estimate of $4.82, according to FactSet. Online store sales were $70.5 billion, up 9%, above the Street consensus at $68.7 billion.

On a call with investors and analysts, Zuckerberg said he expects training and operating AI models will be “even more compute intensive” going forward, suggesting more GPU purchases will be required. CFO Luca Maestri said that in the year ago March quarter, the company had an extra $5 billion in revenue related to unusual dynamics in the iPhone business. After backing out that factor, he said, Apple’s current quarter revenue–both overall and for the iPhone segment–should be about flat from a year ago. Seaport Research analyst Aaron Kessler raised his target price to $510 from $435. Both the revenue and earnings for the quarter exceeded analysts’ projections, according to FactSet Research.

“Despite some concerns, we think Vision Pro could be a significant new category for Apple,” Mohan said in a client note. “Vision Pro will offer a differentiated experience for sports and entertainment, productivity, health and fitness, and retail.” The tech giant lowered its 2024 iPhone shipments of key semiconductor components to about 200 million units, the analyst wrote in a report, citing his latest supply chain survey. That suggests shipments of the iPhone 15 and upcoming iPhone 16 will decline by 10% to 15%, he said.

As Apple execs speak on the earnings call, Apple Stores are preparing for the Vision Pro release Friday.

While the stock is down just over 3% year-to-date, it is up 9% over the past three months and has surged 29% over the past year. The company has been navigating increased competition in smartphone sales from Huawei, sluggish economic growth in China, and the Chinese government banning certain personnel from using iPhones as their personal phone. Apple avoided its fifth straight quarter of revenue declines, with sales growing 2.1% during the holiday quarter to $119.6 billion. Cook says he doesn’t want to compare the headset’s trajectory to any other Apple products.

Wall Street Is Downgrading Apple Stock. Should You Continue to Buy? History Offers an Important Clue

Meanwhile, Apple will begin shipping its Vision Pro mixed reality headset to customers on Friday. Cook said the company will expand shipments of the Vision Pro to other countries later this year. Meta shares were up 17% at $461.21 in premarket trading on Friday.

The numbers, provided on Apple’s earnings call Thursday night, are a little messy. He says Apple is spending “a tremendous amount of time and effort” on AI. “We’re excited to share the details of our ongoing work in that space later this year.” After years of holding that mantle, Apple recently ceded the top spot to its long-time rival Microsoft, which has been elevated largely through its early leadership in artificial intelligence technology.

Trade‑in values will vary based on the condition, year, and configuration of your eligible trade‑in device. You must be at least the age of majority to be eligible to trade in for credit or for an Apple Gift Card. Trade‑in value may be applied toward qualifying new device purchase, or added to an Apple Gift Card. Actual value awarded is based on receipt of a qualifying device matching the description provided when estimate was made. In‑store trade‑in requires presentation of a valid photo ID (local law may require saving this information). Offer may not be available in all stores, and may vary between in-store and online trade‑in.

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