Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors?

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  • Apple (AAPL) is reducing its planned output of a pricey augmented reality headset.
  • Apple is turning to India for large-scale smartphone production.
  • Investors should consider their position size with AAPL stock after a powerful rally in 2023’s first half.
AAPL stock - Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors?

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Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. Will the rest of 2023 also bring huge gains to Apple’s shareholders?

It’s difficult to predict, as there are many moving parts. Ultimately, cautious investors can choose to stay in the trade with Apple but don’t have to aggressively add to their positions.

There’s been a lot of buzz because Apple recently achieved a market capitalization of $3 trillion. That’s an impressive milestone, no doubt.

Now, it’s a good time for sensible investors to consider Apple’s next moves, as it won’t be easy for the tech titan to continue growing at such a rapid rate.

Apple is still a solid company, but always remember that no stock can just go up in a straight line. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.

A AR Pricey Headset and AAPL Stock

Apple’s augmented reality headset, known as the Vision Pro, is the company’s “most significant product since the Apple Watch,” according to Bloomberg.

Some financial traders might assume that the Vision Pro’s rollout will quickly boost Apple’s market cap.

However, it’s not wise to jump to conclusions. Certainly, it’s not a positive sign that Apple is reportedly slashing its production goal for the Vision Pro headset.

According to South China Morning Post (citing Financial Times), Apple initial objective was to produce 1 million Vision Pro units in the first year. Now, the goal is only to produce 400,000 units in 2024.

Apple might blame “complex design issues,” but it’s entirely possible that there are other contributing factors.

In particular, Apple may have been overconfident in assigning a $3,499 price tag on the Vision Pro headset. All in all, it’s not 100% clear that Apple’s expensive VR gear will be a blockbuster seller.

Apple Seeks Opportunities in India

On the positive side of the equation, Apple is evidently looking to India for potential growth opportunities. This represents a huge emerging market with an expanding middle class.

Apple apparently recognizes this, as the company opened two flagship stores in India earlier this year. Furthermore, Apple CEO Tim Cook reportedly attended those two store openings.

In addition, Apple is apparently probing production opportunities in India. This makes sense during a time of tensions between the U.S. and China.

Reportedly, Apple seeks to “manufacture 25% of the world’s iPhones” in India, versus 3.5% today. Diversifying its smartphone production could prove to be a very smart strategy for Apple, so this is probably a bullish development for AAPL stock.

Have a Plan With AAPL Stock

As you can see, Apple’s current and prospective investors have a lot to consider. Apple achieved a $3 trillion market cap quickly this year, but the next milestones might not happen so easily.

It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. As usual, position sizing will be crucial.

The future will probably be bright for Apple and its stakeholders. Still, when all is said and done, there’s no need to chase rallies or over-leverage yourself. In other words, sensible investors can maintain their current share positions in Apple for now, or just add to them gradually.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/market360/2023/07/dont-go-overboard-with-fast-growing-aapl-stock/.

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