2017 Could Be Apple Inc.’s (AAPL) Best Year Yet

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It’s been a rough year for tech titan Apple Inc. (NASDAQ:AAPL). AAPL stock struggled at the beginning of 2016 as investors worried about whether or not the firm would be able to recover after its first-ever quarter of declining iPhone sales.

While the stock has made its way back over $100 per share, 2017 is likely to bring investors even better gains.

Apple’s iPhone Sales Recover

Apple’s latest iPhone model, the iPhone 7, was considered to be only a marginal improvement over the previous generation. However, it appears that the phones sold at an impressive rate. Carriers like Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS) acknowledged that iPhone 7 orders were booming when the phone was released, an indication that Apple will have a good product cycle with the new models.

This is a good sign for the upcoming generation of iPhones, rumored to be called either the iPhone 7s or iPhone 8. There is already a lot of chatter regarding the kinds of updates users can expect from the iPhone 8, but most agree the new model is likely to take the devices to the next level.

The new phone is expected to have everything from a curved screen to wireless charging, and will likely entice more smartphone users to switch to AAPL and give Apple users a reason to upgrade.

Expansion IS Possible for AAPL Stock

One of the major reasons some investors have dumped AAPL stock is pessimism regarding whether or not the company has any room to grow. Many say Apple has reached its peak and the days of high growth are over.

However, this sentiment is far from the truth — even in the smartphone market, which has become increasingly saturated over the past few years.

Apple is working on a major push in India, where the smartphone market is projected to become the second-largest in the world next year, surpassing the U.S.

So far, Apple hasn’t been able to generate much revenue in India due to distribution issues and a lack of disposable income among the Indian population, but the release of Apple’s lower-cost SE model coupled with CEO Tim Cook’s efforts to negotiate distribution channels in the country are likely to pay off for AAPL stock in the coming year.

Perhaps the most exciting part of Apple’s growth strategy is the company’s focus on services. With the smartphone market delivering fewer growth opportunities, Apple is beginning to rely on services to generate new revenue streams.

Apple Pay has been quick to catch on, and that together with Apple Music and iCloud has made Apple’s services arm the firm’s second-largest revenue generator.

The Bottom Line

AAPL stock is certainly an expensive pick at $117 per share, but the company’s days of delivering investor value are far from over. While 2016 was a difficult year for the firm, the coming year looks to be a huge one.

With the contentious U.S. presidential elections coming up in just a few weeks, AAPL stock should be on everyone’s buy list in case of a dip in the market.

As of this writing, Laura Hoy was long AAPL.

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Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/2017-apple-inc-aapl-stock/.

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