Will Apple Stock Fly or Fall in 2022 ?

Key Points , A report suggests that the demand for Apple' latest iPhones has weakened.
offer chain disruptions have caused delays within the shipments of the iPhone 13, frustrating customers in the process.
the larger image seems bright for Apple, that is why investors ought to look past the near-term problems.
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Shares of Apple (NASDAQ:AAPL) have recovered nicely in 2021 once a shaky begin to the year, gaining quite 23%. What' spectacular is that Apple has staged a comeback despite offer chain challenges that hurt its sales within the fourth quarter of financial 2021 (which complete on Sept. 25). In addition, investors have shown their religion in the school big even with weaker-than-expected steerage for the quarter that ends in December.
because the chart higher than shows, Apple stock has gained momentum since the start of October. That' not shocking as the launch of the iPhone thirteen gave investors a reason to cheer, with the device witnessing strong demand that outpaced supply. the corporate hasn't been ready to create enough iPhones to fulfill the higher-than-expected demand as part shortages and coronavirus-driven shutdowns lame production.
In a perfect world, this could cause robust iPhone shipments in 2022 once the availability chain improves, boosting Apple' high and bottom lines and its stock value within the process. however which will not be the case, inflicting the stock to lose momentum early in the new year. Let' see why.
Why Apple stock may fall next year ?
The iPhone is Apple' most vital product. It made nearly $192 billion in revenue for the corporate in financial 2021, that was simply over 52% of its total revenue of $365.8 billion. Now, there are rumors that Apple is also losing customers because of its inability to create enough iPhones to satisfy demand.
in keeping with a Bloomberg report, the company has reportedly told its part suppliers that the demand for iPhone thirteen models has weakened as potential shoppers aren't interested any longer in shopping for the device due to lack of availability. A survey meted out in Japan indicates that the quantity of existing iPhone homeowners curious about upgrading to the most recent device is under last year once additional individuals were curious about upgrading to the iPhone 12.
one among the explanations which will be the case is thanks to the long waiting times for the iPhone thirteen professional models, that are in stronger demand than the quality models. Third-party reports showed that the waiting time for the iPhone 13 professional and also the professional scoop ranged between sixteen days and twenty three days on Nov. 28. it's price noting that Apple had reportedly reduced its 2021 iPhone 13 production target by ten million units due to part shortages, that explains why its devices are still showing intensive waiting times.
the matter is that iPhone thirteen delays are expected to last till February 2022, as rumored by DigiTimes last month. These long waiting times and delays are reportedly inflicting customers to place off their iPhone 13 purchases. This isn't surprising, because the iPhone 13 are going to be nearly 0.5 a year previous by the time it'll be pronto accessible for purchase in February next year.
this might lead customers to drop the concept of buying the iPhone 13 and instead go for the 2022 models. As a result, iPhone revenue may take a success within the close to term and sadden the company' monetary performance and stock value in 2022.
The stock could fly higher in the long-term
Savvy investors, however, shouldn't worry regarding the potential short challenges Apple faces. notwithstanding iPhone sales aren't as nice obviously in the early a part of 2022 because of issues out of the school titan' control, one shouldn't forget the huge upgrade cycle that' driving Apple' growth.
in keeping with IDC, Apple shipped 50.4 million iPhones within the third quarter of 2021, a jump of nearly 21% over the year-ago period. the corporate delivered this spectacular growth throughout 1 / 4 once the smartphone market shrunken 6.7% year over year, with its biggest rivals Samsung and Xiaomi witnessing a contraction in their shipments.
What' more, Apple is enjoying a pleasant bump in the average damage of every iPhone. Sales can be hamstrung by part shortages over successive few months, however it can't be denied that the company is enjoying a mixture of volume and price growth because of the adoption of 5G smartphones.
additional importantly, there have been quite a billion iPhone users at the start of 2021. Wedbush analyst Dan Ives distinguished in Gregorian calendar month that 25% of Apple' put in base of users haven't upgraded their iPhones within the past 3 and a 0.5 years, which implies that there are a minimum of 250 million users in an upgrade window who may obtain the iPhone 13.
Additionally, the quantity of iPhone users while not a 5G device is even higher since the primary 5G iPhone went on sale simply over a year ago. All of this indicates that investors shouldn't miss the forest for the trees