Apple Inc. (NASDAQ:AAPL) iPhone business is experiencing some turbulence

Apple Inc. (NASDAQ:AAPL) iPhone business is experiencing some turbulence

Apple Inc. (NASDAQ:AAPL) iPhone business is experiencing some turbulence

Apple‘s (NASDAQ:AAPL) iPhone business is experiencing some turbulence from a number of factors, including lengthening smartphone upgrade cycles, trade tensions between the U.S. and China, and the company’s temporary low-cost iPhone battery-replacement program. 

Now, according to a new report from Bloomberg, Apple has apparently “asked retail employees to promote new iPhones using methods not seen before.” 

Here’s how Bloomberg described those efforts:

Technicians were told to push iPhone upgrades to consumers with out-of-warranty devices. Senior sales staff had to make sure other retail workers were suggesting upgrades, and easels offering generous trade-in deals for the iPhone XR were erected in stores. Apple’s online homepage was also replaced with reduced iPhone pricing that required a trade-in of older models.

Although this is newsworthy because Apple hadn’t previously employed these tactics, it’s simply a good business move. Here’s why. 

A new reality

The tactics that Bloomberg described might seem like temporary measures to help Apple get through a rough patch for its iPhone business. I don’t think they are.

It’s true that some of the issues currently impacting Apple’s iPhone business may prove fleeting. Trade tensions are likely to get resolved eventually, for example, and Apple probably won’t lower the price of battery replacements again. But there are some permanent matters the company will need to cope with on an ongoing basis.

For instance, market research company IDC believes that the smartphone market may experience a decline in unit sales for the third consecutive year in 2019. Apple is not immune to a smartphone market slowdown, and if the market is shrinking, you’d expect each smartphone vendor to aggressively protect its share while trying to poach customers from competitors.

Apple also participates exclusively in the higher-end portion of the smartphone market, which is troublesome when the low end of the market seems to be outpacing the higher end. 

In the face of this new reality, Apple needs to adjust to maximize its sales and profitability. 

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 183.51.

The projected lower bound is: 157.14.

The projected closing price is: 170.33.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.5757. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.40. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 24 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 60. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 28 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.530 at 170.410. Volume was 41% below average (neutral) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
168.990 170.660 168.420 170.410 23,819,966

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 167.02 161.99 191.51
Volatility: 45 53 39
Volume: 35,369,532 41,596,684 33,591,584

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 11.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 10 periods.


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