I Know First wrote an article about Apple on Oct 12th 2015. The article argued that hedge fund managers are nervous that Apple is still too dependent on iPhone sales. The iPhone 6s uptake is slower than the iPhone 6. Since this forecast the stock price has decreased 6%.
Lately, the company has been declining, as Wall Street analysts have realized about potential weakness in iPhone sales. After all, in the past month their stock has lost nearly 10% of its value
But despite all the noise, things are really not so bad. Hey, just Friday, AAPL did get some much-needed good news from International Data Corporation (IDC).
The firm has published an extensive report on the wearables market. And yes, it looks like the Apple Watch will be a big winner. Overall, IDC predicts that the market will jump from 80 million devices in 2016 to 111.1 million by 2016. Oh, and by 2019, the firm believes that shipments will reach a whopping 214 million.
As for the watch category, IDC expects that the Apple Watch will capture a hefty 61.3% of the market share for this year, followed by Alphabet (GOOG, GOOGL) at 15.2%.
The research firm also believes that this leadership position will be maintained for some time. By 2019, IDC predicts 45.2 million shipments of the Apple Watch, translating into a market share of 51.1%.
There has been a lot of worry in the past months but the giant tech company had amazing results results. Let's look at the numbers: they had a rise in revenues of 22.3% to $51 billion and net profits came to $11.1 billion.
(Figure 1: APPL forecast 11th October ’15)
To create more confidence we can also check previous forecasts of AAPL where the algorithm was right.
We can check the forecast of Sep 20 to Dec 20 where the algorithm predicted a fall in the stock price. As the forecast said, the price decrease was 6.54% during this period.
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