Apple Inc. (NASDAQ: AAPL) shares fell for a fifth day in a row, and ended the day down over 1%. The reason: some analysts made some comments regarding its Apple’s iPhone 8 and iPad. Let’s get right into what some analysts had to say about the company’s iPhone 8 and iPad.

Analyst Comments

One of the largest markets in the world is China, and if there is a lack of demand for iPhones in China, Apple’s sales could be hurt. CLSA’s China Reality Research surveyed middle-class smart phone purchasing intentions in Tier 1 and Tier 2 cities in China. Now, the firm found that iPhone loyalty has fallen to a new low, based on the data of those who participated in the survey. Consumers may be looking to cheaper alternatives, such as smartphones developed by Xiaomi, Huawei and VIvo. That said, Apple could lose some market share in China, which could potentially hurt its earnings. However, China Reality Research analysts noted that the iPhone cycle “looks promising.”

In addition, Needham & Co. chip analyst Rajvindra Gill noted that there could be some problems with producing 3-D sensing in Apple’s iPhone 8, which could be an indication that the company might not offer the feature for this year’s phone. Consequently, there are some concerns with iPhone sales numbers among some analysts.

Apple Statistics and Valuation Ratios

The stock traded between  $140.06 and $143.35  today. AAPL traded between $89.47  and  $145.46, over the past 52 weeks. Consequently, AAPL is  currently 2.52% below its 52-week high and 58.49% above its 52-week low. Despite falling for five straight days, AAPL is still trading above above its 50- and 200-day simple moving average. The stock broke below its 20-day simple moving average today, which could be an indication that there could be a reversal of trend. However, we’ll need to see AAPL trade lower to confirm a change in trend. The next area to watch is the stock’s 50-day simple moving average.

Here’s a look at AAPL’s recent performance on the daily chart:

Source: TradingView

AAPL has a price-to-earnings ratio of approximately 17, which is slightly below the industry average. AAPL has a forward price-to-earnings ratio of 15.84, based on next year’s earnings estimates. AAPL has a book value per share (BVPS) of 25.19, and consequently, its trading at a price-to-book ratio of around 5.6.

AAPL has a price-to-revenue ratio of approximately 3.4, and a forward price-to-revenue, based on next year’s revenues estimates, of around 3.1. Additionally, the stock has a price-to-sales ratio (P/S) of 3.4. According to Morningstar, AAPL’s 4Q 2016 revenue grew by 3.27%, year over year. Additionally, AAPL ‘s net income fell by 2.55% over the same period. However, AAPL’s 4Q 2016 EPS grew by 2.47%, when compared to its 4Q 2015 EPS.

AAPL is expected to report earnings on May 2, 2017*, and the consensus estimate is approximately $2. The company reported an EPS for the same quarter during the same quarter in the previous fiscal year. *Note: Apple’s earnings release date is subject to change.

Final Thoughts

Some analysts are having some doubts about Apple’s iPhone 8. Moreover, the survey conducted by a research firm based in China suggested that middle-class consumers in Tier 1 and Tier 2 cities in China may be looking for alternatives to Apple, and there may be a lack of brand loyalty, according to the survey. Apple is expected to report earnings on May 2, 2016, and it’ll be interesting to see whether the company was able to grow its iPhone sales.


Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of and the Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

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