Apple stock (NASDAQ: AAPL) fell to the $295 range from its yearly high of $315. Skeptics were confident that AAPL would plunge below the $300 level, as the company is battling high costs to access memory chips. The outgoing CEO Tim Cook told the Wall Street Journal that the firm could increase prices due to the rising costs. Price increases are “unavoidable,” and memory chips have become “unsustainable,” he said.
The costs of memory chips have risen between 80% and 200%, and are mostly driven by the explosive demand for data centers. Apple is now finding it hard to maintain its price range, and could see a spike in rates in the upcoming September launches. The effects of the price rise are already echoing in the market circles, which is inadvertently affecting Apple stock.
Phillip Securities analyst Helena Wang wrote in a note to clients that Apple stock could slump further. While he maintained the ‘hold’ rating. The analyst predicted that AAPL could bottom out at a particular price range. Therefore, it is important to keep a close eye on the leading phone maker, as accumulating at its low opens up prospects for better returns.
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Here’s How Low Apple Stock Could Fall (AAPL)
Wang predicted that Apple stock could fall to the $290 level and test the $280 floor. It is here that the leading equity could gain support, as buying increases due to the dip. Therefore, taking an entry position between the $290 and $280 range could be beneficial for traders. AAPL is a long-term asset that can generate returns, as the company’s performance is robust.
Even analyst Tom Forte of the Maxim Group previously wrote in a note to clients that $290 is the best buying opportunity for Apple stock. He urged clients to begin accumulating AAPL when it dips below the $300 level. It is advised not to go all-in on AAPL during the dips but to deploy capital during every downturn.