Citi: Strong sales of Apple wearables continue to drive share prices higher

Jim Suva, an analyst at Citibank, said Monday that strong sales of AirPods and Apple Watch will surprise investors when Apple reports its first-quarter results for fiscal 2020. That’s why Apple’s stock will continue to move up to his $300 target next year, Mr. Suva said.

Citi: Strong sales of Apple wearables continue to drive share prices higher

Mr Suva said the shortage of AirPods Pro during the holiday shopping season was not due to manufacturing problems. “Actually, because of strong demand, the company’s production has not kept up. ”

He says demand for the AirPods Pro is just behind the Apple Watch Series 3. The Apple Watch, first released in 2017, starts at a low price of about $199, making it attractive to teenagers and low-cost consumers.

“When Apple next reports its results, wearable sales will be the biggest surprise,” the technology analyst said.

Apple is expected to report its first-quarter results for fiscal 2020 on February 4, covering the 2019 holiday shopping season.

Apple’s October results showed a growth rate of about 50 per cent in wearables, including AirPods, Apple Watch and Beats-branded headphones.

This is Apple’s second consecutive quarter of growth in this area. Apple has also signalled to analysts that it can continue to innovate rather than cling to its flagship iPhone. IPhone sales have been falling in recent earnings reports.

Apple’s shares rose nearly 1 percent monday to about $292 a share. The stock is up about 84 percent since the start of the year, making it the best-performing stock in the Dow Jones Industrial Average.

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