Apple Stock News: A Stumble with the HomePod

Apple Stock News

Apple Stock News: Apple announced on Friday, November 17th, that it would be delaying the launch of its new home speaker based on Siri until next year.  As of now, no release date has been given.  The HomePod was initially announced in June with a December launch date, and was largely viewed as Apple’s response to Google Home and Alexa (Home assistants from Google and Amazon) that are seen as some of the greatest recent technological advances. These home devices are used for everything, from listening to music, to asking questions about the weather, your schedule and general curiosity, and are even used to make purchases as needed.

On its own, a delay of a launch of a specific product wouldn’t be so bad.  After all, the HomePod may be missing out on a holiday season, but Apple is more than able to make up for these sale losses in the long term. The problem is what Apple appears to be signaling to the market with this delay following the problems with the release of the iPhone X (shortage of components and problems with suppliers), the iPhone 7 (with Apple misjudging the demand for the Plus model, leading to a shortage of products) and the Air Pods (with Apple simply stating that it believes the Air Pods needed some more perfecting before they were ready to be launched). Apple is apparently having trouble coordinating with its suppliers, not being able to follow up with launches as promised, or not being able to supply the quantity needed.

Despite these obstacles, Apple still continues to grow, having presented growth in iMac, iPhone and Services sales. Additionally, the company has a positive view for sales next year, including for the HomePod, when it finally launches. As such, the perspective for Apple stock is positive, with several analysts setting the target price for the stock as being between $180 to $200 per share, well above its current price at $170.15.

With this data, it is advisable to wait before buying Apple stock, as it should decrease in price in the short term with this quantity of bad news, but should still present a growth story in the long term.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

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