Why Apple Stock Is Gaining Today
Apple (AAPL 3.25%) stock is posting significant gains in Friday’s trading. The company’s share price was up 3.3% as of 3 p.m. ET. Meanwhile, the S&P 500 (^GSPC 0.49%) was up 0.3%, and the Nasdaq Composite (^IXIC 0.72%) was up 0.4%.
In addition to positive momentum for the broader market today, especially tech stocks, Apple is getting a lift from a potentially bullish demand indicator for its iPhone lines. According to a recent report from The Information, the tech giant has instructed its manufacturing suppliers to increase production of its base-level iPhone 17 mode.
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Apple stock rises on iPhone 17 news
According to the recent report, Apple has increased its orders for entry-level iPhone 17 models. The basic iPhone 17 models retails at a price of $799. Meanwhile, the iPhone 17 Pro model sells at $1,099. News that Apple is moving to increase production for one of the models in its iPhone 17 line is generally encouraging, but there could be some complicating factors.
What’s next for Apple?
Increased production output for Apple’s entry-level iPhone 17 model seems like a positive demand indicator, but it also comes with some margin concerns. While a rise in production output for the base-level iPhone 17 suggests that the model is doing better than expected, it also raises questions about whether other iPhone 17 products may be underperforming. If so, it could reflect general consumer hesitance when it comes to the latest iPhones that winds up actually being a net negative for Apple.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
