Analysts Believe Coronavirus’ Effect on Apple Will be Temporary
It appears as though industry analysts are not overly concerned over the impact coronavirus may have over Apple’s lowered stock heading into the spring season and beyond.
Business Insider went over the investor notes of four analysts who all reviewed the recent dip in Apple’s stock this week. On Tuesday, the company’s stock fell 3.2%, but still remained 9.4% year to date. And as many have been concerned over whether or not the coronavirus would have a larger impact on Apple’s manufacturing, sales, etc., it seems as though there is no dramatic cause for concern.
All four of the analysts reviewed by Business Insider referred to coronavirus’ impact as “temporary”. In the report, JPMorgan stated: “Apple’s biggest boost to iPhone sales will arrive in the fall with its 5G-capable lineup. Virus-related risks will likely fade by then, and steady Services revenue can offset some losses.”
RBS Capital Markets echoed a similar statement in its report: “While the 2019 update “was not a (most likely) one-off item driving the lower demand,” Monday’s statement signals revenue will simply be delayed until the third quarter, analyst Robert Muller wrote. The most important variable is the spread of coronavirus in the near future, as a prolonged pandemic could keep demand in China stifled for quarters to come.”
As the analysts continue, their reports do support the notion that coronavirus’ impact will be at its strongest throughout Q2 and Q3 2020. With Apple readying itself for a new wave of iPhones and other mobile devices, the company’s stock should gain a significant boost come the fall period.