Apple Inc. (NASDAQ:AAPL) ramps up AirPods Pro production

Apple Inc. (NASDAQ:AAPL) ramps up AirPods Pro production

Apple Inc. (NASDAQ:AAPL) ramps up AirPods Pro production

Demand for $250 wireless headphones is apparently quite strong. According to Nikkei Asian Review, Apple has doubled production of its AirPods Pro, to 2 million units per month, in an effort to satisfy consumers’ unquenchable thirst for the very expensive gadgets. Apple stock was up 0.9% on the news.

The Pro version of the AirPods is produced at factories operated by Chinese supplier Luxshare, while the lower-cost AirPods are split between multiple suppliers. Apple is reportedly leaning on Luxshare to ramp up production of the Pro version, while also asking suppliers to increase production of the standard AirPods.

Last week, Bloomberg reported that overall AirPod sales are expected to hit 60 million units in 2019, partly due to higher-than-expected demand for the Pro version. With iPhone sales in a prolonged slump, non-iPhone products will need to pick up the slack for Apple in the years ahead.

Aple doesn’t break out sales of AirPods, instead lumping them into its wearables, home, and accessories segment. That segment generated $24.5 billion of revenue in fiscal 2019, up 41% year over year. In addition to AirPods, the Apple Watch contributed to the segment’s growth.

Apple doesn’t disclose profitability of its segments, so it’s unclear whether these new products are capable of fully offsetting lower iPhone profits. Apple’s operating profit tumbled 9.8% in fiscal 2019, despite a smaller 2% decline in revenue.

Competition is coming for Apple in 2020: Microsoft is planning to launch its delayed Surface Earbuds in the spring, and Alphabet’s Google will release its Pixel Buds around the same time. This holiday season, though, Apple’s AirPods are positioned to be big sellers.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 276.53.

The projected lower bound is: 259.82.

The projected closing price is: 268.18.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 30 white candles and 19 black candles for a net of 11 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 82.1462. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 68.44. 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 2 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 109.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 7 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.590 at 267.250. Volume was 57% below average (consolidating) and Bollinger Bands were 36% narrower than normal.

Open     High      Low     Close     Volume___
266.600 268.000 265.900 267.250 11,654,363
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 265.19 244.00 208.64
Volatility: 18 22 29
Volume: 21,455,900 25,473,086 26,945,506

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 28.1% above 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 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 71 periods.

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