Shares of Apple (NASDAQ: AAPL) are up 74.2% since the beginning of the year despite this year being marked by the quickest ever selloff in equities amid the pandemic. Still, investors are likely to continue investing in Apple stock as 2021 could be a “super year” for the tech giant.
Fundamental analysis: New products unveiled, ambitious iPhone target set
Apple launched a new feature called “Fitness+” which aims to enter the online workout market. Powered by Apple Watch, a new subscription-based fitness app is available on iPhones, iPads and the Apple TV.
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“Apple Fitness+ offers 10 different workouts types across a range of durations, including High Intensity Interval Training (HIIT), Strength, Yoga, Dance, Core, Cycling, Treadmill (for running and walking), Rowing, and Mindful Cooldown — along with inspiring music from today’s top artists, thoughtfully chosen for each workout to keep users moving and motivated,” it is said on Apple’s website.
Fitness+, which can be used by up to 6 family members, costs $9.99 per month or $79.99 per year with some discounts available for Apple Watch buyers.
Elsewhere, a report in Nikkei Asia stated that Apple is preparing for a record 2021 in terms of iPhone shipments. The tech giant plans to produce up to 96 million iPhones for the first half of 2021, representing an almost 30% year-on-year increase.
For the full-year, these numbers would translate to up to 230 million iPhones including both old and new models.
“The planned production for the next quarter and the following quarter have been decided and the outlook is quite bright. The iPhone 12 Pro, and iPhone 12 Pro Max are especially stronger than we estimated, while the demand for iPhone 12 is in line with the forecast, but iPhone 12 mini is a bit sluggish,” an executive at a key Apple supplier told Nikkei Asia.
The Nikkei report prompted Wedbush analyst Daniel Ives to reiterate his thesis of a “supercycle”.
“While the Street is forecasting roughly 215 million iPhone units for FY21, we believe based on the current trajectory and in a bull case Cupertino has potential to sell north of 240 million units which would eclipse the previous Apple record of 231 million units sold in FY15,” Ives wrote in a note sent to clients.
“Based on lead times on the Apple website as well as our checks, we believe pre-orders tracked more than 2x its predecessor iPhone 11 thus far and is a robust start out of the gates for Cupertino on this flagship supercycle product.”
Ives rates AAPL as “Outperform” with a price objective set at $160.00.
Technical analysis: New record highs targeted
Shares of Apple gained a further 5% on Monday to increase monthly gains to 7.4%. Going forward, the Apple buyers are likely to push for a new record high above $138.
More specifically, Fibonacci extension targets on the upside are $147.50 and $160.00, which will be primary targets for buyers in the months to come.
Apple stock price has continued to rise yesterday after the launch of Fitness+ and a news report that the tech giant is preparing to ship 30% more iPhones in 2021.