Most news has been fairly bleak this week, as speculation regarding the omicron variant has overtaken the airwaves. As it happens, though, fans of Apple (NASDAQ:AAPL) technology can look forward to an important catalyst in early 2022. MacRumors has reported that the Big Tech innovator is planning on releasing the third-generation iPhone SE within the first quarter of the coming year. As of now, it seems that the latest addition to the smartphone family will be available by the end of March, pending no further delays. It comes as little surprise that AAPL stock has reacted well to the news.
What Happened With AAPL Stock
AAPL stock is up more than 2% for the day, following the news of the long-awaited iPhone release. Despite the dip the stock took on Black Friday, it has rebounded fairly well. Indeed, it is currently up almost 2% for the week. AAPL’s overall performance for November has been good, though, with shares rising by almost 10% for the month. With the holiday season approaching, it is likely that shopping trends will help the stock continue to rise throughout the remainder of the year.
While uncertainty continues to overshadow markets, due chiefly to the emergence of the omicron variant, none of it stands to affect AAPL stock too much.
Why It Matters
Additionally, it is likely that the news of the upcoming iPhone release date will help spur growth throughout the first quarter of 2022. InvestorPlace’s Faisal Humayun recently named AAPL a top blue-chip stock for growth and dividend potential in the coming year, citing the impending iPhone release as a primary cash-flow driver along with the strong earnings that the company recently reported.
It’s worth noting that while inflation fears continue, Apple is a company that is well positioned to withstand rising costs. InvestorPlace contributor Patrick Sanders recently touted the potential of AAPL stock to defy inflation due to its high market capitalization and impressive cash-on-hand levels. The new iPhone release will only serve to boost sales. And even if it is delayed, the buzz around it will likely keep momentum alive until the device hits shelves. Indeed, the loyalty of Apple consumers is a strong asset for the company.
What It Means
There’s no question that we’re heading into a complicated holiday season. Investors are left with more questions than answers with the new Covid-19 variant, uncertain holiday travel plans, inflation fears and supply chain anxieties all wreaking havoc. However, when it comes to AAPL stock, it’s pretty clear the company isn’t in for much turbulence.
The tech sector doesn’t stand to be as affected as others if variant fears progress. And regardless of the exact date, the iPhone SE release is a catalyst that will excite many consumers. Investors shouldn’t be worried about the future of their AAPL stock as we prepare for the year ahead.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
