Apple Inc. (AAPL) Cuts iPhone Production, Time To Sell AAPL Stock?

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A Silver Lining For Apple

However, not all is gloom and doom as far Apple Inc. (NASDAQ:AAPL)’s iPhone segment is concerned. In a recent report by Flurry analytics, the research firm highlighted that Apple was still the top device (smartphone/tablet) manufacturer measured byl activations during the holiday season. Apple accounted for 44% of the device activations, outdoing Samsung by more than 2:1.

More interestingly, Flurry’s data also showed that smartphone buyers during the 2016 holiday season gravitated towards phablets, a segment which includes Apple’s plus models. The phablet segment accounted for 37% of holiday device activations, up from 27% in the year-ago period. This trend of phablets increasing their share of the smartphone market will be positive for Apple’s iPhone ASPs as well as overall profit margins.

Putting It All Together

Selling AAPL stock on the recent spate of negatives is not a very smart idea, in our opinion. Why? Investors should take a little bit longer term view of Apple Inc. (NASDAQ:AAPL). While the recent negatives might lead to a temporary pullback in Apple stock price, we believe that the iPhone 8 Super Cycle and the emergence of Apple’s Services segment as a clear growth driver make Apple stock a good buy for 2017. We believe that AAPL stock could rise to $135 (2) this year. Hence, any pullbacks in the short term would present an opportunity to buy the stock on the cheap.

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The article Apple Inc. Cuts iPhone Production, Time To Sell AAPL Stock? originally appeared on amigobulls.com. Watch our analysis video on AAPL

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Additional Links:

(1) http://info.localytics.com/blog/countries-in-asia-adopting-the-iphone-6s-and-6s-plus-the-fastest?ref=il

(2) http://amigobulls.com/articles/apple-inc-aapl-stock-will-rise-above-135-in-2017?ref=il&ref=im

(3) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im

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