Apple: Back In The Game
- A settlement with Qualcomm places the iPhone back in the game after a few weak quarters.
- Less harsh rhetoric in the Chinese trade war should open the market back up for Apple to regain some lost market share to Huawei.
- The company beat lowered FQ2 estimates and guided up for FQ3.
- The prediction is that FY20 EPS rebounds back towards $14 on strong margins from Services and a rebound in iPhone sales.
One of the biggest risks facing Apple (AAPL) shareholders in the next year was the lack of a 5G phone on the market by the end of 2020. The tech giant was already facing weak iPhone sales trends and didn’t need another reason for consumers to hold onto existing smartphones for another year. The company is now set up for a rebound started with the FQ2 beat as the market became far too bearish on iPhone demand based on weak data points from the December quarter due mainly to China and the trade war.