Apple Inc. (NASDAQ:AAPL) Q2 Earnings, iPhone Sales & Services Growth
Shares of Apple AAPL have climbed over 20% this year, along with FAANG peers Netflix NFLX and Facebook FB , to outpace the S&P 500’s 13% jump. Apple and CEO Tim Cook hope that new Services like Apple TV+ will propel long-term growth for the tech titan. But despite its new offerings and its 2019 climb, Apple’s near-term outlook appears rough, especially in terms of iPhone sales.
Recent News & Overview
Apple just recently lowered the price of many of its products, including iPhones, iPads, Macs, and AirPods, on its online store in China, according to multiple reports. Prices on these products were lowered by roughly 6% on average and come after official Chinese third-party Apple sellers such as Alibaba’s BABA Tmall and JD.com JD lowered some Apple prices earlier this year. Apple’s new price cuts have been attributed to the recent reduction of a value-added tax in China from 16% to 13%.
It is unclear if Apple’s lower prices will positively impact sales in the market that has for years offered a range of much less expensive smartphones from the likes of Xiaomi and Huawei. Investors might remember that Apple stock plummeted at the start of the year after Cook warned shareholders of a major slowdown in China and lower-than-anticipated iPhone sales.
AAPL’s first-quarter revenue ended up falling 4.5%, driven by a 15% drop off in iPhone sales and a 27% decline in revenue in Greater China. The world’s second-largest economy, which includes Hong Kong and Taiwan, accounted for roughly 16% of quarterly sales, while iPhone sales were responsible for 61% of Q1 revenue.
Since the disappointing quarter, Apple has focused on its Services future. The company last week unveiled its long-awaited streaming TV platform that hopes to one day compete alongside Amazon AMZN Prime, Netflix, Hulu, and Disney’s DIS soon-to-launched streaming service. Apple also showed off its $9.99 per month, magazine-heavy news service, a new Apple credit card in partnership with Goldman Sachs GS , and a subscription-based gaming offering called Apple Arcade.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 179.82.
The projected upper bound is: 199.76.
The projected lower bound is: 184.14.
The projected closing price is: 191.95.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.
A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with APPLE INC) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.4261. This is not an overbought or oversold reading. The last signal was a sell 6 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 66.69. 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 5 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 67. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 1.290 at 191.240. Volume was 23% below average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
191.640 191.680 188.380 191.240 27,861,964
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 189.47 174.41 190.56
Volatility: 29 29 39
Volume: 35,182,404 29,345,556 33,665,796
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.
APPLE INC is currently 0.4% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 45 periods.