Despite the recent news that a new Covid variant has been discovered, Apple continues defies the market and other tech giants. Amazon, Alphabet (Google), Microsoft and Tesla all saw minor hits to their stock price over concerns about potential new global restrictions on travel, commerce and entertainment due to COVID-19.
Apple has been uniquely shielded from much of the disruption created by the pandemic. As many people continue to work from home, Apple products and services remain a staple in keeping global economies and vertical markets moving. And new technologies from Apple such as FaceTime with meeting links have made the companies software offerings more compelling.
It hasn’t all been sunshine for Apple with disruption to the global semiconductor supply chain starting to impact their channel inventory. Supply of many of the Cupertino tech giants recent offerings such as the iPhone 13 series, Apple Watch Series 7, iPad Mini 6 and the all-new MacBook Pro is heavily constrained. The new chips that power these new products are in very tight supply with 6-8 week backlogs for new orders placed today in many regions.
Despite the minor hits to other tech giants in recent days, generally, consumers and investors have confidence in big tech. Andre Bakhos from Reuters said it best:
“People are just confident in the earnings predictability of tech stocks,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
Reuters
As Apple defies the stock market, do you think it will continue to grow off the back of Omicron? Or will the chip shortages catch up with Apple? Leave your thoughts in the comments.