Apple continues to impress people with an interest in technology stocks. Tech businesses do maintain a reputation for volatility. Apple’s stock experienced ups and downs, but recent financial news appears all positive. The company’s record-breaking holiday sales data, in particular, is stunning.
Between Christmas Day and New Year’s Eve of 2019, Apple’s App Store’s revenue exploded. The sales numbers show an increase of 16% from the previous year. In terms of raw dollars, that comes out to $1.42 billion.
Increase revenues affect stock prices. The impact on Apple’s shares was not minimal, as the stock price rose to record highs. Early January sees Apple selling at $300 per share. Some analysts see the shares going higher while others maintain a more cautious assessment.
Investors following Apple’s continued stock price jumps might revue the App Store’s news and expect the company’s good fortunes to continue. The data shows consumers are loyal to Apple and respond positively to its retail offerings. Assuming Apple’s revenue will head solely in an upwards direction, however, could be premature.
Not surprisingly, sales of the iPhone 11 drove revenues. The iPhone continues to dominate the smartphone market, as the device’s brand loyalty and awareness help it to best competitors. The device, however, doesn’t always set consumers on fire. Disappointing releases did drag Apple down in the past. Some negative news has emerged regarding 2020, which could raise alarms.
Reports about Apple’s new iPhone designs aren’t entirely positive. The release of a disappointing new model could hamper Apple’s revenues, and recent leaks about the 2020 iPhones’ designs suggest disappointments. However, no one will know how consumers will react to the new devices until they hit stores. Leaks don’t always tell the complete picture.
iPhone sales did not drive high revenues along. Apple promotes a “wearables” division to great success, and AirPods continually prove to be big sellers. AirPods, along with other wearables, sold exceptionally well during the holidays. Even if the forthcoming new iPhones turn out to be less than stellar sellers, wearables could pick up revenue slack.
Sales numbers, of course, level off once the holidays end. Sales spikes then surge when a new holiday arrives. Presidents’ Day comes in February, and eyes are on all publically-traded retailers to see how their products move. Apple won’t repeat its Christmas season success, but it could do well during the three-day February holiday.