2020 is slowly winding down. Meanwhile, Apple stock inches quietly towards all-time highs.
Today, the Apple Maven discusses a couple of hot topics driving shares of the Cupertino company higher on December 7, approximately three weeks before the end of this eventful year.
Could Mac steal the show?
When it comes to Apple and what could move the stock next year, the talk of the town has been the iPhone 12 and the “5G super cycle”. I discussed the topic a few days ago, including an early read on the yet-to-be-announced iPhone 13.
But the Mac is also shaping up to be one of the brightest stars of the show in 2021.
On Monday, Bloomberg reported that Apple could introduce its new lineup of ARM-based chips, the successor of the M1, as early as the Spring. The new piece of hardware is expected to outperform those made by Intel, Apple’s (soon to be former) partner.
This is good news for Apple investors, and likely best explains why the stock traded higher that the S&P 500 and the Nasdaq throughout Monday’s session.
Keep in mind that Apple has only transitioned two Mac models out of Intel and into the new architecture. For the new year, it is likely that the company will launch two redesigned MacBook Pros, possibly equipped with new LED screens and touchscreen capability.
The success of these new products should be important for the performance of the company and stock in 2021. This is the case because comps will be very hard to overcome, following robust sales in a year of pandemic and stay-at-home trends. Investors will likely be relieved to see momentum carry forward into next year, rather than a falloff in revenues.
Speaking of this subject, Jim Cramer expressed his views about the semiconductor space on Monday. Check it out.
What economic crisis?
One other piece of news released over the weekend flew under the radar, but I found it relevant.
JPMorgan analyst Samik Chatterjee reported that demand for the higher-end iPhone 12 has been strongest in the holiday shopping season. According to MarketWatch:
Of course, there are two sides to this equation: supply and demand. The longer lead times could be a result of supply chain delays, which would be a more bearish than bullish story.
But should this be a demand-side story, the low levels of inventory mean that Apple’s iPhone sales in fiscal first quarter could be skewed towards the higher end of the spectrum. If so, expect ASPs (average selling prices) to be higher, which is good news for revenues and margins.
Last word in: survey results
Last week, I asked Twitter what people thought of Apple heading into 2021. Will the stock rise further, plateau or correct? Below are the results – notice that market watchers seem very optimistic about Apple.
Do you agree? Disagree? Feel free to leave your opinion in the comment section below.
Read more from the Apple Maven:
(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)