Investors Bullish Ahead of Apple iPhone Announcement

By: Zain Nabi  |   September 9th, 2013   |   Apple, News

Apple on September 10 is holding a press conference at its headquarters in Cupertino, California, where it is expected to launch the two new iPhone models widely referred as iPhone 5S and 5C and this development has caused a bullish trend among its investors.


According to some, besides launching the two models of iPhone, the company will also announce its deal with the world’s largest mobile phone carrier China Mobile Ltd, which has more than 740 million users. Currently, iPhones are supported by the second and third largest Chinese Telecom carriers, China Unicom Hong Kong Ltd and China Telecom Corp Ltd, whose combine subscribers are not more than 266 million.


“Apple is effectively only selling to half the Chinese market today,” said Brian Colello, analyst with Morningstar. “They can essentially double their sales in China quickly with China Mobile. So it’s a big deal.”


But Colello also cautioned that a lot of investors have already bought the stock of the company in the hope that the company is soon announcing the deal with China Mobile and could also think to sell the shares if the deal is not announced. In September 2012 after the launch of cheaper Android-based smartphones by some of Apple’s competitors the share prices of Apple declined 29% since after hitting a record high of $702.10.


According to Thomson One, Wall Street’s 12-month target share for Apple ranges from a median approximation of $530 to as high as $825. The shares after the announcement of the events closed on Monday up 1.6 percent at $506.17.


Since the end of June, the stock prices of the company have shown an increase of 25%. According to some analysts, the market may be overpricing projected instability in Apple shares.

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