Apple Stock Hits All-Time High Amid Better-Than-Expected iPhone 11 Sales

According to a Nikkei report, Apple will ramp up the production of the iPhone 11 by up to 10%. The company has told suppliers to increase t...

According to a Nikkei report, Apple will ramp up the production of the iPhone 11 by up to 10%. The company has told suppliers to increase the production of the iPhone 11 series by about 8 million units, while the market is chasing new low-priced smartphones, demand thus is much stronger than expected.

JPMorgan analysts expect iPhone shipments in the third quarter to be 1 million higher than previously expected, and shipments in the fourth quarter will be 3 million higher than previously expected. Apple is not expected to cut the iPhone 11. Instead, it will continue to increase orders for the models.

Following these optimistic reports, it sent Apple's shares to a new record high, with the company closed at $236.21 today at a market capitalization of $1.07 trillion, edges out Microsoft. In general, AAPL has risen nearly 10% over the past month. Besides, compared to January of this year, Cupertino has a sizeable increase after it falls below $150 back in the month.

CNBC also highlighted another reason that AAPL hits an all-time high:

The spike appears to be related to an impending resolution to China trade talks. President Trump said on Friday that there are “warmer feelings than in recent past” ahead of his China trade talk meeting with Chinese Vice Premier Liu He at 2:45 p.m. ET. If the U.S. and China come to terms on trade, Apple could potentially avoid a tax on Chinese imports, which would either force the company to increase the price of its products or eat the cost itself. But, if talks sour, the U.S. is set to increase tariffs on $250 billion of Chinese goods 25% to 30%.

Apple will hold an earnings call later this month to announce the revenue and the profit they have made in the third calendar quarter of 2019.

Image Via The Mac Observer