Apple, with a market capitalization of $596 billion, has the potential to sway the markets one way or the other and every move this tech stalwart makes could be worth watching out for. The news flow on Apple was fairly heavy on Tuesday, although the nature of the news flow, at best, would be qualified as mixed.
After gap-opening lower (at $110.78 Vs. Monday's close of $111.57), the stock gradually recouped its loss, moving into positive territory by late morning and briefly going above the $112 level. Subsequently, the stock pulled back and has been holding barely above the unchanged line in a broad sideways movement.
UBS lowered its iPhone procurement estimates for December to 74 million from 75 million, down 1 percent year-over-year. This, according to the firm, places the current consensus estimate for the December and March quarter unit shipment growth at risk.
However, analyst Steven Milunovich feels mix shift will support ASPs. The analyst indicated his 76 million unit sales estimate is below the 78 million unit Street estimates. The analyst maintained his Buy rating and $127 price target for shares.
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IDC Forecast Weak Smartphone Shipment Forecast for 2016
Global smartphone shipments may just manage to stay afloat in 2016 after rising 10 percent in 2015, according to the IDC. Specifically, IDC estimates shipments of 1.45 billion in 2016, up 0.6 percent. IDC said Apple could see negative annual iPhone sales growth, given the global smartphone saturation.
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