Will Apple recover its value?

Will Apple recover its value?

2019-11-11 • Updated

The company has big long-term challenges but current problems can be solved.

The news from Apple Inc has shocked the market last week. The company cut its sales forecast for the first time in almost two decades because of the weaker demand in China which is experiencing an economic slowdown. According to CEO Tim Cook, Apple’s revenue for the final quarter of 2018 will be $84 billion versus the previous estimate of $89-$93 billion.

Although the signs were there before, the market got surprised. Apple shares fell by 10% on Thursday and provoked a drop in the entire Wall Street. All in all, Apple stocks are more than 30% down from October highs.  

On the one hand, the problem looks rather serious. The company gets two-thirds of its revenue by selling iPhones. The latest model released in September is not selling well. Fewer people than expected bought it to replace older iPhones. Demand for new smartphones isn’t expanding. Given the weakening economic growth, Apple’s high pricing policy may prove to be a disadvantage. Since Tim Cook took the position in 2011, the company hasn’t introduced any revolutionary solutions. There were AirPods and Apple Watch but they are tightly linked to the iPhone. Obviously, Cook is now facing a great challenge: he has to show the world that things will improve. To achieve that goal, Apple may try to cut costs and increase marketing efforts.

On the other hand, as long as the current sales troubles are limited to China, the company will be able to deal with them. However, it’s clear that in the longer term Apple has to diversify its products in order to retain its market position. It’s not possible to rely only on iPhone anymore. The company, of course, is developing other projects like self-driving car and augmented reality glasses but they are still far away. Even the iPhone for fifth-generation networks won’t be released this year. The possible solution here for Apple is to spend cash on buying other companies and thus getting in new businesses.  

On the positive side, while the company cut the outlook for iPhone revenue, its other product categories, including the iPad and services generated a 27% higher revenue than compared with the previous year.

Finally, Apple’s case of weaker sales is not unique. Other American companies have similar problems in China. This fact may act as an incentive for the US authorities to find a compromise in the trade talks with the Asian nation.

The weekly chart shows that Apple is oversold. The last time RSI was this low was during the global financial crisis in 2008. As a result, the stock may recover to the resistance at $155.00.


Apple will publish its quarterly report on January 29. Now a lot of bad news is already priced in, so the asset may find support and restore some of its value.

You can now trade Apple with FBS! The stock is available in MetaTrader 5. Just open an MT5 account in your personal area and download the trading terminal and you’ll be able to trade the world’s biggest company!


S&P in the Сrosshairs
S&P in the Сrosshairs

Institutional investors speak about further growth in the stock market. In the exact market that has doubled since COVID-19 and doesn’t plan to stop. Is it possible?

Latest news


Over the last couple of weeks, GBPUSD and a few other commodities have breached their recent swing highs and lows, while some have even gone on to create new All-Time Highs and Lows

It’s Time to Look at New Zealand
It’s Time to Look at New Zealand

Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera