Apple Stock’s December Performance

December Quarter: A Crucial Time for Apple’s iPhone Sales

According to industry analyst Daniel Ives, the December quarter is of utmost importance for Apple. This period, spanning from Black Friday to Christmas, witnesses a surge in iPhone sales, making it a critical time for the tech giant. Despite the significance of December, the company’s stock performance during this month tends to suffer due to the market already factoring in the year’s developments.

However, this year might bring a promising change compared to the disappointing December of 2022. In that year, Apple experienced a 12% drop in its stock value due to severe supply issues at its iPhone facility in Zhengzhou. Although some reports indicate that Apple is facing supply constraints this year as well, the situation is nowhere near as dire as in 2022.

2023: A More Normal Holiday Season

Last year’s December was dubbed the “Grinch” of the holiday season, primarily due to the constraints imposed by the China Covid situation. However, 2023 presents a more normalized holiday season for Apple, with no major production cuts reported. This positive environment sets the stage for a successful Christmas period.

Furthermore, Apple has also benefited from improved supply conditions and continues to witness steady demand for its latest flagship model, the iPhone 15. Astonishingly, around 25% of the global iPhone user base has not upgraded their devices for over four years. This loyal user base, comprising 1.2 billion iPhones worldwide, provides a significant opportunity for Apple to drive sales during this upcoming cycle.

With the combination of enhanced supply and a large base of potential upgraders, industry experts remain hopeful about Apple’s performance in the December quarter.