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What happened
Actions of Apple (NASDAQ: AAPL) reached an all-time high on Wednesday, following bullish comments from analysts and reports of significantly higher iPhone production rates. As of 2 p.m. EDT, the stock price had risen more than 2%, putting Apple’s market cap at $ 2.5 trillion.
So what
The tech titan is working to make up to 90 million of its latest iPhones this year, according to Bloomberg. Apple is said to be preparing to increase its shipments by 20% from 2020 levels.
Apple is expected to launch its latest generation iPhones in September. The improved processors, displays and cameras are all expected to help increase the device’s appeal to consumers.
Apple’s stock price has jumped in recent days – and Wall Street sees even more gains to come. Image source: Getty Images.
Meanwhile, analyst Samik Chatterjee added Apple to JP Morgan’s “priority list” on Wednesday. Chatterjee sees Apple shares hit $ 175, fueled by rising iPhone and Mac sales. If he’s right, shareholders could enjoy gains of around 17% from the current share price, close to $ 149.
Now what
Apple is in the middle of an iPhone supercycle powered by 5G. Fifth-generation wireless technology promises to provide users with blazingly fast download speeds and enable a host of advanced technologies.
Soaring iPhone sales are also boosting demand for Apple’s ever-expanding range of services. These high-margin revenue streams in turn help fuel the company’s astounding profit growth. Investors – excited about the prospect of even bigger profits to come – are pushing the tech giant’s shares to new all-time highs today.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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