Apple Stock Hits Key Resistance as Foldable iPhone and Fed Outlook Take Center Stage
Apple's stock price continues to recover from its August correction, trading around $328 on September 4. The company's revenue in the third fiscal quarter increased by 16% year-over-year to $109.4 billion, with diluted earnings per share rising by 29% to $2.02. Gross margin came in at 50.1%, but this was partly due to tariff-related refunds.
The focus is now shifting from Apple's earnings to its product cycle. The company will hold its fall presentation on September 9, where it is expected to unveil the iPhone 18 Pro, Pro Max, and a foldable iPhone. Morgan Stanley estimates that the latter could generate around $14 billion in revenue in the December quarter, with shipments of 7-8 million units.
However, there are concerns about consumer price sensitivity due to potential higher memory and component costs for the new Pro models. This could put pressure on sales volumes if Apple cannot maintain its average selling prices.
The macro backdrop is also playing a role, with Treasury yields holding around 4.76% after a recent rise to 4.82%. Today's U.S. labor market data release will be closely watched, as a weak report could reduce expectations for a Fed rate hike and support Apple's stock price.