Apple Inc. (NASDAQ:AAPL) likely to post a huge jump in iPhone selling price

Apple Inc. (NASDAQ:AAPL) likely to post a huge jump in iPhone selling price

Apple Inc. (NASDAQ:AAPL) likely to post a huge jump in iPhone selling price

Apple is likely to post a huge jump in average selling price, or ASP, for the iPhone when it reports fourth-quarter earnings next week, according to top analyst Toni Sacconaghi.

The Bernstein analyst is forecasting an ASP of $800 — a record average selling price for Apple and an increase of 29 percent from Apple’s fiscal fourth quarter of 2017.

That’s a huge number for Apple. The days of massive unit sales growth for the iPhone appear to be over, but Apple has figured out a winning formula to squeeze more profits out of every iPhone it sells. The new family of iPhones that was introduced last month start at $750 for the iPhone XR and go all the way up to $1,449 for the fully loaded iPhone XS Max. That starting price is $100 more than the iPhone 7 cost two years ago.

The average price tag on Apple’s flagship phones has become an increasingly important metric in recent quarters, as global smartphone sales slow amid market saturation. The result is rapidly rising ASPs. Apple has posted double-digit year-over-year growth in ASPs for the last three fiscal quarters. The three quarters before that, ASPs were basically flat year over year.

Price target for Apple to $225 from $200 and maintained a rating of Market Perform for the stock.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 225.75.

The projected lower bound is: 204.64.

The projected closing price is: 215.20.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 60.9389. This is not an overbought or oversold reading. The last signal was a buy 8 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 44.02. 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 sell 34 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 -76. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 12 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -7.640 at 215.090. Volume was 42% above average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
222.600 224.230 214.540 215.090 40,925,164

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

Moving Averages: 10-period 50-period 200-period
Close: 219.11 221.00 190.97
Volatility: 40 30 29
Volume: 35,046,772 32,778,046 31,688,780

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 12.6% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 10 periods.

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