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Shares in Apple currently trade for around $210 – up by some 15% since the start of the year.
This makes the company the world’s largest by market capitalisation ($3.2tr), ahead of the likes of Microsoft, NVIDIA and Alphabet, although the rankings change frequently as share values move up and down.
There was high volatility in tech company share prices early in August 2024. In part this was due to unease across global stock markets about the health of the US economy, with others taking profits following sustained growth among companies riding the artifical intelligence boom.
So far in 2024, Apple has released new iPad tablets, new Mac computers and the Vision Pro – its first foray into virtual/augmented reality. It is expected to introduce new iPhone handsets in the autumn.
We looked at what Apple’s current standing might mean for its share price for the rest of the year.
Apple’s share price history
The graph below displays the past performance of Apple. Past performance is not a reliable indicator of future results.
Investments in a currency other than sterling, are exposed to currency exchange risk. Currency exchange rates are constantly changing which may therefore affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin.
Apple’s share price has risen by more than 351% in the past five years, peaking at more than $234 in July 2024.
The tech giant’s share price has been steadily trending upwards since May, following the announcement of the seventh-generation iPad Pro tablet and new M4 chip, along with the sixth-generation iPad Air, Magic Keyboard 2 and Apple Pencil Pro.
Apple’s share price jumped in the aftermath of its presentation at WWDC 2024 in June, where it unveiled the iOS18 operating system featuring Apple Intelligence – the company’s take on artificial intelligence. The stock rose by almost 12% in the following week.
Profit-taking and wider stock market tribulations have edged the stock price down again in the early days of August.
Third quarter earnings
July saw the publication of Apple’s 2024 third quarter financial results, to 29 June. The report showed Apple posted quarterly revenue of approximately £66 billion ($85.8 billion), up 5% year-on-year, and quarterly earnings per diluted share of £1.10 ($1.40), up 11% year-on-year.
The firm reported almost £23 billion ($29 billion) in operating cash flow and returned roughly £25 billion ($32 billion) to shareholders. It said its installed base of active devices reached a new all-time high in all regions during the third quarter.
Meanwhile, it emerged this week that legendary investor Warren Buffet’s Berkshire Hathaway firm has sold more than 55% of its Apple holdings over the last six months. The portfolio has jettisoned 505 million shares since the end of 2023, raising eyebrows in investment circles.
What next for Apple’s share prices?
Nobody can accurately predict how a company’s share price will change over time. Share prices are determined not only by a business’s market performance, but also by wider macro-economic events affecting the markets in which it trades.
However, we asked stock market commentators what investors could potentially expect from Apple’s performance for the rest of 2024.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Apple reports third-quarter earnings on the heels of its recent developer day, which lit the spark on its journey into AI. This is a key period for a business that’s struggled to deliver real innovation in recent times. The hope is that with new tech that’s only available on newer models, a long-awaited iPhone upgrade is coming.
“This isn’t an immediate switch, though, with most of the benefits likely to feed into next year’s results. That said, reports from Bloomberg suggest Apple is expecting to see a 10% uplift in new iPhone sales this year, which would require a strong second half.
“A note of caution stems from competition in China after back-to-back quarters of revenue declines. Investors will be watching closely for how the demand picture is evolving. Despite an overall decline in sales in the region, the flagship iPhone saw growth last quarter. News that the iPhone 15 and iPhone 15 Pro Max were the best-selling smartphones in urban China suggests that Apple’s allure remains intact.”
Deiya Pernas, CFA and co-founder of investment research firm Pernas Research, believes the outcome of the US presidential election in November will affect share prices: “The outcome of the US presidential election, particularly a victory by Donald Trump, could exacerbate the already tense US-China relationship. For example, China has already banned iPhone usage among its government officials. This could be just the beginning stage of a long future of retaliatory actions.
“Such an environment could further strain Apple’s operations, given its heavy reliance on Chinese manufacturing and the market for its products. Apple’s proactive steps to diversify its production to India and Vietnam signify a strategic hedge against these geopolitical risks.
“However, replicating the efficiency and scale of its Chinese operations elsewhere is a formidable challenge, reflecting the complex interplay of politics and global business strategies Apple must navigate. For Apple investors, a Trump presidency could be a doubling down of ‘bitter-for-longer’ tensions and represents a significant risk.”
Edward Corona, trader and publisher at The Options Oracle, said: “Apple’s recent innovations and product launches, coupled with strong earnings reports, have bolstered investor confidence.
“However, broader market conditions, including interest rate movements and geopolitical factors, will also play a critical role. I anticipate that Apple’s strong fundamentals will help it weather any macroeconomic headwinds.”