Apple shares are on track for their worst month of 2023, despite the recent launch of the highly anticipated iPhone 15. The stock has been struggling, with no relief in sight.
Current Status of Apple Shares
In premarket trading on Thursday, Apple (ticker: AAPL) shares were slightly up by 0.3% at $169.99. However, the stock closed at its lowest level since early May the previous day.
As of now, Apple is down 9.3% this month, making it the worst performing month of the year since December 2022 when it experienced a 12% decline. Additionally, it is also on pace for its worst quarter since Q2 of 2022.
The Cause of the Gloom and its Outlook
John Roque, senior managing director at 22V Research, reiterates his belief that Apple shares are still in correction mode after their summer surge. Based on the company’s stock chart and past corrections following gains, Roque suggests that Apple could potentially fall to $150.
However, technical-analysis provider Phases & Cycles disagrees with Roque’s pessimism. They argue that Apple was overbought when it approached the $200 mark in July but are more optimistic about its future trajectory.
According to Phases & Cycles’ analyst Monica Rizk, there is strong support near the $165-170 range. Only a sustained decline below this level would be considered negative. On the other hand, a decisive rise above $190 would indicate a resumption of the uptrend towards higher targets.
What Lies Ahead for Apple?
As Apple shares continue to face downward pressure, investors are eagerly awaiting any signs of improvement. With conflicting opinions from experts, it remains uncertain how the stock will perform in the coming months. However, it is clear that Apple’s recent struggles have dampened investor sentiment.
Apple Faces Challenges with iPhone 15 Pro
Recent News Raises Concerns About Overheating Issues
Investors who focus on fundamentals may view the recent news about Apple with caution. According to a report by The Wall Street Journal, the high-end iPhone 15 Pro is said to be experiencing overheating problems, as indicated by tests and feedback from buyers.
Apple has not provided any comments to address the allegations reported by the WSJ, and they have not responded to requests for comments from other sources.
Apple’s Challenges Amidst Shifting Expectations
In addition to the issue with the iPhone 15 Pro, Apple is also facing difficulties as technology stocks navigate a changing interest-rate landscape. The Nasdaq Composite Index, which heavily features tech companies, has dropped over 9% since its peak in July.
The Importance of iPhone 15 Demand
To gauge Apple’s performance more accurately, investors are eagerly awaiting concrete data on the demand for the iPhone 15. Although initial signs from preorders suggested strong demand across the product range, UBS analysts highlighted in a recent research note that some customers in Europe may opt for less expensive devices. Moreover, macroeconomic pressures could affect Chinese demand for the new iPhone models. Despite these potential challenges, UBS maintains a Neutral rating on Apple stock and a target price of $190.