Apple stock up 7.04%

Apple (AAPL) stock rose 7.04% on Wednesday after getting butchered in the last four trading days. The stock has been in a slowdown since October 3, when it touched an all-time high of $233.47, as a result of the global sell-off due to worries over the trade war with China, slowing economic growth, and the recent hike in interest rates. Apple’s market capitalization also hit below $700 billion on December 24 for the first time since February 2017.

The surge in Apple stock on December 26 came after a CIRP (Consumer Intelligence Research Partners) report, which found that Apple had reportedly attracted many Android users this year with its latest iPhone model as compared to previous years.

Why Apple Stock Rose 7% on Wednesday

CIRP report

According to the CIRP’s latest findings, after 30 days of the newest iPhone model XR’s launch, around 16% of iPhone buyers in the US have switched from an Android phone to an iPhone XR. In comparison, approximately 12% of iPhone buyers upgraded from an Android phone when Apple released the iPhone 8 and 8 Plus in September 2017. The company had drawn around 11% of Android users when the iPhone X was released in November 2017.

Among Apple’s latest models of iPhone XS, XS Max and XR, iPhone XR seems to be the most affordable and attractive to Android users. The price of iPhone XR, launched in October 2018, starts at $749. In the 30 days after its launch, XR sales contributed around 32% of total iPhone sales in the US, while combined sales for the iPhone XS and XS Max accounted for 35% of iPhone sales in the US.

The report came after speculation of weak iPhone demand that led to a cut in the outlook of Apple’s suppliers. Apple has reportedly ordered its suppliers including Lumentum Holdings (LITE), Qorvo (QRVO), Universal Display, Cirrus Logic, and Skyworks Solutions (SWKS) to lower the production of its iPhone models from its original production plan. During the fourth quarter of fiscal 2018 ending in September, Apple reported iPhone shipments of 46.9 million in the quarter, down from the Wall Street expectations of 47.5 million units.

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