Apple is Setting Stock Records. Again.

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Apple was doomed. Then they set stock records and became the most valuable company in the world. Then the price fell and they were doomed again. We were assured that they couldn’t innovate anymore. Then Phil Schiller told us Apple “can’t innovate my ass” (ironically while announcing a computer that would go three years without an update).

The price has gone back up and come back down, again. Then Apple drove a stake into the heart of the venerable old headphone jack by removing it from the iPhones 7 and 7 Plus in spite of the howls of the all-knowing tech press. Surely this would be their undoing, and iPhone 7 sales would absolutely tank, right? IPad sales were already well off their peak in 2013. Can we finally say it? Is Apple really doomed this time?

Adding fuel to the media’s fire, on February 1 Alphabet passed up Apple to become the most valuable company in the world. Unfortunately for the folks that now run Google, their bragging rights were extremely short lived. Apple’s quarterly earnings hit on January 31, and they were impressive. iPhone sales weren’t just good. They were up 5% over the previous year, which is rock solid. Apple actually broke records for earnings per share and revenue per share. Then, on February 3, they passed Alphabet again on their way back up the ladder. Nope. Not doomed.

Apple has kept the party rocking over the month since, culminating in the news today that their stock has once again hit an all-time high at $139.78, up from a previous high of $137.11. That previous high came just last week. Over the last week, it has also come to light that Warren Buffett’s investment company, Berkshire Hathaway, has doubled its investment in Apple here in 2017. Maybe I’m wrong, but that sounds like good news to me.

Based on the continued good news and upward trajectory, expect Apple to continue to set stock records for the near future. Sales and profits might recede over the second and third quarters unless the new iPads drastically change the sales trajectory that the category has been on for the last three years. With all of the rumors of the coming iPhone 8 abounding and even crossing over into the mainstream media, existing iPhone sales are almost certain to slow down, as people who can wait for the latest and greatest will do just that.

However, even if AAPL takes another tumble from the top of the world’s markets in the middle of 2017, don’t bet on prices staying down. If nothing else, Apple has proven time and time again over the last decade that they understand what their customers want, and know how to deliver the goods. The tech press looking down from on high may not agree, but they’ve been wrong about Apple before. MANY times before. Whatever happens in the middle of 2017, expect the fourth quarter sales after the release of the new iPhone to be through the roof, yet again.

What do you think of Apple’s prospects to keep the money flowing and their stock rising in 2017? Please let us know in the Comments section below, on Flipboard, or on Twitter @iPadInsightBlog or @jhrogersii.


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