Apple's Stock Plummets on Disappointing Earnings... "A Buying Opportunity at Low Prices"

iPhone 13 Series Launch.
Photo by Yonhap News

[Asia Economy Reporter Park Jihwan] NH Investment & Securities evaluated on the 31st that Apple experienced a stock price correction period as its third-quarter earnings fell short of expectations due to parts shortages, and that this stock price correction should be used as a buying opportunity at a low price.

Apple recorded third-quarter sales of $83.4 billion and operating profit of $23.8 billion. Although these figures represent increases of 28.8% and 61% respectively compared to the same period last year, the results fell short of market expectations, causing the after-hours stock price to plunge 3.5% on the day.

Researcher Lee Gyuha of NH Investment & Securities stated, "In the short term, the stock price may decline due to poor earnings, but considering the strong iPhone demand, growth in service revenue, and new growth drivers such as mid- to long-term XR (Extended Reality) and autonomous vehicles, the stock price correction should be regarded as a buying opportunity at a low price."

Apple announced results below expectations due to semiconductor supply shortages and production disruptions at Sharp, the camera module supplier. Apple mentioned that the sales shortfall caused by this amounts to approximately 7 trillion won. Researcher Lee Gyuha said, "Regarding future prospects, although semiconductor supply shortages continue, camera module production normalization is underway in Vietnam, so growth compared to the previous year is expected." A key point from the conference call was the assessment that supply chain disruption issues in Southeast Asia have significantly improved since October. Checking through various channels and data, demand for the iPhone 13 series is very robust, and the slowdown in shipments due to supply shortages is likely to result in increased sales after the first quarter of next year.

Researcher Lee Gyuha stated, "With very strong demand for the iPhone 13 series, the sales shortfall caused by supply shortages is expected to be compensated in the first half of next year, so concerns are considered excessive. The fact that service revenue is steadily growing even as we enter the with-COVID era is also positive. I recommend taking this stock price correction as a buying opportunity."

This content was produced with the assistance of AI translation services.