Apple Stock Soars on Analyst Optimism and Rumors of Mac Upgrade

April 12, 2024 – On April 11 local time, Apple’s stock price experienced a rare surge, closing up 4.3% and adding $112 billion (approximately RMB 810 billion) to its market value in a single day.

This significant increase can be attributed to two primary factors. Firstly, several Wall Street analysts, including those at Bank of America and JPMorgan Chase, have expressed optimism about Apple despite the company facing a series of setbacks and stock price difficulties since the beginning of the year. According to Wamsi Mohan, an analyst at Bank of America, Wall Street has once again underestimated Apple’s gross profit margin. Mohan predicts that Apple’s gross profit margin for products will increase by approximately 180 basis points, while the gross profit margin for services will rise by about 150 basis points in the coming years. Pricing strategy is another lever that Apple can pull to further boost its gross profit margin.

Secondly, reports indicate that Apple is planning a major upgrade for its Mac computers, equipping them with a new generation of M4 chips featuring artificial intelligence (AI) capabilities. Reports suggest that Apple intends to revamp its entire Mac product line with AI-powered M4 chips. The company is scheduled to release multiple Mac models equipped with M4 chips, including a new iMac, a budget-friendly 14-inch MacBook Pro, high-end 14-inch and 16-inch MacBook Pros, as well as a Mac mini, from the end of this year to early next year.

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