Apple’s Big Rally Gives Stock Bulls Something to Cheer About. For investors trying to decipher if the stock market rebound has staying power, Apple Inc. holds a clue. The world’s most valuable company has the biggest influence in the S&P 500 Index and its participation in the market-capitalization weighted benchmark is essential to any sustainable rally. Apple shares beat the S&P for a ninth-consecutive week and have helped fuel a 22% rebound in the tech-heavy Nasdaq 100 from a June low. The S&P 500 is still down 10% in 2022 despite rallying since June. Apple’s shares, on the other hand, are on the cusp of turning positive for the year after tumbling with other technology stocks in the first half. In snapping up Apple shares, investors are betting that the iPhone maker’s strong balance sheet will allow it to continue returning cash to shareholders and wring big profits out of its more than 1 billion users despite the potential for a recession in the US.
Last year, Apple launched a feature called App Tracking Transparency, or ATT. It allows consumers to decide whether apps can track them across other applications and websites—a key way for marketers to gather data and then serve up more relevant ads. Typically, the better the ad, the more money it generates. This means Apple is going to, over time, significantly expand its own advertising business. Some people may resent Apple putting ads in the News and Stocks apps. After all, the iPhone is supposed to be a premium device. Now the only question is whether the customers of Apple—a champion of privacy and clean interfaces—are ready to live with a lot more ads.
Apple Inc. has asked suppliers to build at least as many of its next-generation iPhones this year as in 2021, counting on an affluent clientele and dwindling competition to weather a global electronics downturn. The tech giant is telling its assemblers to make 90 million of its newest devices, on par with last year, despite deteriorating projections for the smartphone market, according to people with knowledge of the matter. The Cupertino, California-based company still expects to assemble roughly 220 million iPhones in total for 2022, also about level with last year, according to one of the people. Apple’s projections, a closely guarded secret, suggest it’s confident about weathering a slump in spending on smartphones and other devices. Mobile device makers have begun freezing orders, China’s largest chipmaker warned on Friday. The global handset market, which slid 9% in the June quarter, is expected to shrink 3.5% in 2022, IDC has forecast. Shares of Apple suppliers in Asia rose on the news. Taiwanese iPhone assembler Pegatron Corp. jumped as much as 3.6% in its biggest gain in five weeks, while Japan Display Inc. logged its biggest two-month rise of 5%. TDK Corp. rose as much 5.3% and Murata Manufacturing Co. gained 3.7%. At a time when Android devices are suffering, the stronger demand for Apple’s new lineup stems from a customer base still willing to spend on premium gadgets, the people said. The virtual demise of Huawei Technologies Co. also has eroded competition in high-end smartphones.
Last year, Apple launched a feature called App Tracking Transparency, or ATT. It allows consumers to decide whether apps can track them across other applications and websites—a key way for marketers to gather data and then serve up more relevant ads. Typically, the better the ad, the more money it generates. This means Apple is going to, over time, significantly expand its own advertising business. Some people may resent Apple putting ads in the News and Stocks apps. After all, the iPhone is supposed to be a premium device. Now the only question is whether the customers of Apple—a champion of privacy and clean interfaces—are ready to live with a lot more ads.
Apple Inc. has asked suppliers to build at least as many of its next-generation iPhones this year as in 2021, counting on an affluent clientele and dwindling competition to weather a global electronics downturn. The tech giant is telling its assemblers to make 90 million of its newest devices, on par with last year, despite deteriorating projections for the smartphone market, according to people with knowledge of the matter. The Cupertino, California-based company still expects to assemble roughly 220 million iPhones in total for 2022, also about level with last year, according to one of the people. Apple’s projections, a closely guarded secret, suggest it’s confident about weathering a slump in spending on smartphones and other devices. Mobile device makers have begun freezing orders, China’s largest chipmaker warned on Friday. The global handset market, which slid 9% in the June quarter, is expected to shrink 3.5% in 2022, IDC has forecast. Shares of Apple suppliers in Asia rose on the news. Taiwanese iPhone assembler Pegatron Corp. jumped as much as 3.6% in its biggest gain in five weeks, while Japan Display Inc. logged its biggest two-month rise of 5%. TDK Corp. rose as much 5.3% and Murata Manufacturing Co. gained 3.7%. At a time when Android devices are suffering, the stronger demand for Apple’s new lineup stems from a customer base still willing to spend on premium gadgets, the people said. The virtual demise of Huawei Technologies Co. also has eroded competition in high-end smartphones.