Key Stats for Apple Stock
- Price change for Apple stock in last 6 months: 29%
- $AAPL Stock Price as of Oct. 26: $344
- 52-Week High: $352
- $AAPL Stock Price Target: $329
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What Happened?
Apple (NAAPL) said on Monday that some of its new iPhone Duo units have display problems, and the company will replace them. The Duo is Apple’s first folding iPhone and started shipping last week.
Social media posts over the weekend showed cracks and bright lines on the inner screen. The damage appears along the hinge, where the phone folds.
Apple said a “small number” of units are affected and said the problem tends to show up quickly. Customers should contact AppleCare for a replacement.
Apple did not say what is causing the issue.
iFixit, a repair firm, ran a simulation using teardown footage, patents, and CT scans. It found the damage clusters near a central support bar.
That bar may not be moving out of the way as the phone folds, which could create a stress point.
There is some good news in the iFixit report. It called the iPhone Duo the most repairable foldable phone it has tested, and out-of-warranty inner screen repairs cost $999.
Most damage reports come from anonymous posts on forums, even as fake images are also circulating online.
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What the Market Is Telling Us About Apple Stock
The launch was strong as online orders sold out in minutes, and customers lined up for limited stock. Analysts expect supply constraints because the phone is hard to build.
The Duo starts at $1,999, and Apple now has to weigh demand against early quality concerns. An IDC analyst called the fast replacement offer the “right first step.”
He pointed to Samsung’s 2019 Galaxy Fold problems. His view is that a quick, open response can keep the damage contained.
Apple’s latest earnings show a strong base for this launch.
- June quarter revenue was $109.4 billion, up 16%.
- iPhone revenue rose 22% to $54.3 billion.
Apple said it was already facing supply limits before the Duo arrived and expects those limits to increase in the September quarter.
Memory costs are another factor. Apple said it expects to pay higher memory prices, which has pushed its gross margin guidance down to 47% to 48%.
For Apple stock, the key question is how widespread the display issue turns out to be. Anyone following Apple stock should watch for updates on replacements and supply.
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So what is Apple stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
