Apple stock (NASDAQ: AAPL) managed to outperform forecasts despite a drop in iPhone sales compared to past years. While iPhone sales had little impact on growth, Apple continued to realize considerable gains in income thanks to iMac computer sales and the openness of China.
Despite Foxconn’s reduction in iPhone manufacturing, Apple continues to struggle to satisfy the demand for the iPhone 14 Pro, perhaps contributing to delivery delays. Weaker demand rhetoric resulted in Apple’s downgrade a few weeks ago. Apple Inc. stock increased marginally after hours after the firm posted better-than-expected earnings.
AAPL’s value remains reasonable at 25 times earnings. The phone maker’s massive cash pile has deteriorated as it has sought to buy back shares and return cash to shareholders in the form of dividends. The fiscal year’s current cash and cash equivalents decreased from $34 billion to $23 billion. The value of short-term marketable securities went from $27 billion to $24 billion, while long-term marketable securities fell from $127 billion to $120 billion. Apple repurchased $89 billion in shares, which was the major cause of the cash drop. Long-term debt was lowered by around $11 billion during the quarter, indicating that Apple’s strategy of incurring debt to finance buybacks would not be a concern.
Sales might increase by 10% in 2023, while Apple’s stock (NASDAQ: AAPL) repurchases are expected to halt. Costs have risen, but falling shipping charges and other ancillary costs indicate net income should rise by roughly 9%, implying EPS of $6.1 to $6.2 in 2023.
Apple Stock Forecast for 2023
A recession in North America and Europe is predicted in 2023, which might slow development. On the other hand, China may be able to compensate for some of that weakness since a low base leads to substantial growth in sales. The iPhone will compete with newer versions, and PC manufacturers may lower items to bring sales back on track, perhaps affecting iMac sales. Apple will also want to increase sales in Africa and South America, in addition to other emerging nations in Asia and the Middle East, in order to reduce its reliance on established markets like Europe and the United States.
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