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AAPL Recovers as Foxconn Orders Pick Up
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AAPL Recovers as Foxconn Orders Pick Up

A revived Foxconn looked like good news for Apple (NASDAQ:AAPL). With Foxconn reporting a gain in revenue for December, getting back to normal looks more and more likely to happen. Apple is volatile in Thursday afternoon trading, as it alternates between positive and negative.

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With the Foxconn plant back up to around 70% production, and further recoveries likely to follow, it’s looking like good news for Apple. Even as reports emerged that Apple was cutting orders to Foxconn, Foxconn was already in the process of a comeback. December revenue may have been down, but it was still up in year-over-year comparisons. Internal forecasts found that Foxconn’s revenue was still better than expected, bringing in the third-highest revenue figure the company ever saw.

Moreover, one major clarification emerged from Foxconn itself. A source within the company noted that iPhone orders were never actually changed. While the reports suggested that a variety of product lines saw cutbacks in orders, Foxconn sources noted that iPhones were not on the list. Additionally, subsequent reports point out that Apple will often cut orders in December or January since the company already has a stock to sell going into the holiday shopping season. It makes little sense, after all, to stock big numbers coming out of the holiday season.

Regardless, Apple stock is still a juggernaut for investors. Wall Street agrees; analyst consensus counts Apple as a Strong Buy. Further, with an average price target of $176.70 per share, Apple stock enjoys an upside potential of 40.22%.

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