Apple flying towards the first $2.5 trillion valuation on the wings of AirTags2
Rising tides lift all boats, and all Apple suppliers associated with the iPhone 13 production like the A15 chip-maker TSMC, or the iPhone camera maker LG Innotek which just opened 8% higher, are also experiencing an upshot of their stock prices.
What's behind Apple's record share price rally?
Citigroup analyst Jim Suva for Barron's, Apple is headed for a $170 share price form the current $150 or so, and strong demand for "Macs, iPhones, and wearables, in particular the Apple Watch and the new AirTags" are behind the rally. Wait, what, AirTags now?Well, according to
That's right, according to Mr Suva "independent research shows that many iPhone users are purchasing Apple’s newly launched AirTags and purchasing them in the 4 packs for $99 versus single purchases for $29. Importantly, many are also opting for key rings and loops. The result is many are spending more on the accessories than the actual AirTags without fully realizing this due to the desire for fashion and appearance over function."
Apple's positioning as a luxury good company are paying off handsomely yet again. The $449 Hermes AirTag pricing is apparently paying off, literally, as, just like the Citigroup analyst puts it, what do you think?How surprising that
Another analyst, J.P. Morgan's Samik Chatterjee, also chimes in with similar sentiments and has overweight rating on Apple's stock with the addition that he forecasts "a path to Apple outperforming investor expectations over a longer time horizon rather than just the upcoming earnings print."