Apple’s (NASDAQ: AAPL) stock has dropped16% from 2021’s high in January despite the market thrill about 5G enabled iPhone 12 released in Q4 2020. As the stock trades around the $120 mark, it presents a solid opportunity for buying.
Analysts remain bullish based on the demand for the iPhone 12 that moves towards the top of the 5G smartphone market within months of its launch. There is also optimism that the phone’s sales in 2021 and 2022 will continue to peak amid the 5G buzz.
Historically, Apple has presented a buying opportunity below $120 per share. Currently, AAPL stock is still moving in an upward channel. After the latest trading session on Friday, the stock price is facing a breakout. If the bullish scenario plays out – $130 levels will be the next resistance to tackle. If buying power is sustained, AAPL will strongly eye another all-time high at $150 levels or above. However, if the sellers dominate, the stock price might plunge to the next support level at $110.
Picked for you
Apple pushes to stay ahead of competitors in 5G frenzy
The bullish future is further cemented by the fact that the company is expected to keep surging ahead in the 5G game simply because it manufactures its chips. On the flipside, competitors in the Android space are jostling for chips from almost the same manufacturers.
“We have not seen a robust launch upward trend such as this in a number of years for Apple. While this number will clearly move around over the coming months, we believe this speaks to an increased confidence with Cook & Co. that this 5G driven product cycle will extend well into 2022. A “post-vaccine consumer reopening environment” may also be beneficial to sales.
Furthermore, enthusiasm regarding the next iPhone and the development of the Apple car has led to analysts projecting the company’s stock to hit $3 trillion.
Worth mentioning is that despite Apple making advances in the 5G market, Chinese manufacturer Huawei by estimates, accounts for the highest share of 5G ready devices.
Apple lags behind the two Asian manufacturers in what is termed as a late entry into the 5G revolution. However, it was expected that once the firm unveils compatible devices, it will immediately compete with the Asian rivals.
Interestingly, with just a single 5G-ready device release, Apple ranks third, offering a glimpse of what to expect in the future.
Huawei current top position is mainly due to the fact that it serves an extensive domestic market.