Does iPhone 7 Production Ramp Mark True Turnaround In Apple Stock?

By | May 23, 2016

Scalper1 News

Apple ( AAPL ) is jumping in heavy volume in the stock market today as reports signal the consumer tech giant’s iPhone production is on the rise. Taiwan’s Economic Daily said Apple told its iPhone 7 suppliers to produce 72 million to 78 million units this year, many more than the 65 million units Wall Street has projected. That production target is also the highest in about two years. The iPhone 7 is due out in September and could give Apple the boost it needs after the company reported its first-ever quarterly decline in iPhone sales last month. Shares are up 1.8% in heavy volume, hitting their highest level in nearly a month. But the stock still has a lot of recovering to do after gapping down on its latest quarterly report, as it’s down about 27% from its 52-week high. Chip Suppliers Get A Boost Meanwhile, Apple chip suppliers Taiwan Semiconductor ( TSM ), Broadcom ( AVGO ), Qorvo ( QRVO ) and Skyworks Solutions ( SWKS ) are also getting a boost from the report. Taiwan Semiconductor gapped up 2.2% in quick turnover, but it’s hitting resistance at its 50-day line. Shares are trading 7% below their March high and a flat-base buy point of 26.72. Broadcom is climbing 1.6% in above-average volume, but it’s also hitting resistance at the 50-day line. The stock is 6% below its April peak and a potential buy point. Qorvo is rising 3% in big volume after having retaken its 50-day and 200-day moving averages in Friday’s session. The stock is nearing a cup-with-handle buy point of 52.05, but it’s trading 42% below its high reached last June. Skyworks is gapping up 2.9% in fast trade, but it’s still 40% below its June high. Scalper1 News

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