After yesterday’s 5% decline in Apple’s stock price, is today a good time to pick up some stock? Writing in the Wall Street Journal, Rolfe Winkler thinks so.
Flashback to last year. In the quarter ending September, analysts had expected iPhone unit sales would be 20 million and Apple sold just 17 million. Shares dropped 5% the following day. But customers were holding back on purchasing a new iPhone, waiting for the release of what ultimately turned out to be the iPhone 4S.
Something similar likely is happening again this year as customers wait for the next iPhone to be released in the fall. And this cycle should prove more significant as the next iPhone is likely to work with carriers’ next-generation LTE standard. It may also be compatible for the first time with the largest carrier network in the world—China Mobile. There are over 100 million high-end subscribers on China Mobile’s network that may be interested in buying the coveted device. China Mobile customers are so anxious to buy iPhones that millions already use “unlocked” models even though they operate more slowly on its network.
Disclosure: I am long AAPL.
- 73% Of Smartphones Sold By AT&T Last Quarter Were iPhones (cultofmac.com)
- China beats out U.S. to be largest smartphone market, Apple share grows (venturebeat.com)