Apple delivers on services, wearable growth strategy

We're maintaining our US$200 fair value estimate.

Abhinav Davuluri, CFA 31 July, 2019 | 8:25AM

Apple (AAPL) reported third-quarter results that mimicked recent quarters, as strong showings from services and wearables segments compensated for softer iPhone sales. Although we continue to anticipate continued momentum in both services and wearables revenue, we foresee the upcoming iPhone launch in September likely being more marginal in nature. Consequently, we don’t anticipate a major rebound in iPhone unit sales, particularly as customers await a 5G iPhone model in 2020. We are maintaining our US$200 fair value estimate for Apple and would recommend prospective investors seek a wider margin of safety before committing capital to this narrow-moat behemoth.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Apple Inc110.06 USD-0.02

About Author

Abhinav Davuluri, CFA

Abhinav Davuluri, CFA  Abhinav Davuluri is a senior equity analyst for Morningstar.

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