Apple (NASDAQ:AAPL) has had a decent run of things lately, even if it didn’t always go all of Apple’s way. Yet, underneath it all, Apple seems to be running in a nice, stable fashion that should draw the risk-averse investor in. In addition, Morgan Stanley analyst Erik Woodring and team revealed that the App Store is delivering for Apple and in a big way.
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App Store revenue is estimated to be up 12% against this time last year, noted Woodring, and in quarter-to-date comparisons, it’s up 11%. That’s 6.5 points better than what Morgan Stanley originally forecast. There’s good news all over on this matter, too; while China is holding steady in terms of its App Store demand, Japan and the United States are putting on a little extra steam. It’s not just good news for the App Store, either; the hardware required to get there is also holding steady. Both iPhone and iPad shipments are ahead of projections, though not by much; iPhones are up 2% and iPads are up 3% against current forecasts.
Apple Hardware is In for Some Upgrades, Too
This is certainly good news for Apple, but there are signs it could get even better thanks to upcoming hardware improvements. As the launch of the new MacBook Pro line approaches, the idea of waiting for an updated MacBook Air may feel endless and somewhat futile. However, signs are suggesting the wait may be worthwhile. The M3 MacBook Air may be coming out soon and offering some impressive new power of its own. Meanwhile, the Qualcomm (NASDAQ:QCOM) deal will be in play for the foreseeable future, with Apple admitting that the deal is now running until 2026.
What is the Fair Price of Apple?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AAPL stock based on 25 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 27.5% rally in its share price over the past year, the average AAPL price target of $201.99 per share implies 5.52% upside potential.
