The Upgrade that’s Causing Apple (AAPL) Stock to Surge

Apple's sales have been down on a year-over-year basis three quarters in a row but finally, things are on an upswing.

apple stock

It has been a while since Apple Inc. (NASDAQ:AAPL) stock performed well in the market but things are definitely looking up for the Cupertino tech giant following its announcement to give its MacBook Pro line a long-overdue makeover.

Bloomberg reports that the MacBook, which is the company’s premium line of notebook computers, will come with a host of new features in an effort to increase sales.

The do-over, a first in over four years, may include thinner form factor, OLED touchscreen strips for functions keys, better graphics processors, no doubt to please gamers and designers alike.

Apple is also rumored to bring its Touch ID fingerprint technology seen on the iPhone to the updated MacBook. The technology allows for faster logging, secure access, and accurate authentication for online purchases.

The new MacBooks could roll out this fall, along with Apple’s newest flagship smartphone, the iPhone 7 as well as the iPhone Watch. The launching will likely be timed with the release of Apple’s newest computer OS, Sierra.

Despite facing tough competition in the laptop segment and the popularity of the iPad, Apple’s MacBooks showed surprising resilience. MacBook sales, including the Pro line, surged 6% to $25.5 billion in the last fiscal year. Meanwhile, iPad sales slipped 23% to $23.2 billion.

According to Apple’s internal research, iPad customers tend to upgrade their tablets every three years while iPhone users get new ones every 18 to 24 months. This could explain why iPad sales have been lackluster since 2013.

During the last quarter of June, Apple’s Mac unit sales plunged to a disappointing 11% year over year while revenues dropped to 13%. The line generated $5.24 billion in sales, accounting for 12% of Apple’s total revenue last quarter.

Apple’s stock opened at a three-month high of $108.52 a share this morning after slipping as low as $90.34 in May due to the less-than-stellar performance of the iPhone. Apple’s shares are marginally higher in Thursday’s trades.

Previously, Apple’s stock rose amid reports that iPhone suppliers are prepping for massive sales of the iPhone 7. Insiders speculate that the iPhone 7 could come with a 3D touch button instead of the iconic home button to slim its form factor even further as well as support for wireless headphones instead of the traditional headphone jack.

Wall Street Journal noted that although the upcoming iPhone 7’s design will resemble that of the iPhone 6S, it is rumored to feature water resistance capability, something that the majority of iPhone users have been clamoring for.

According to research firm Drexel, which monitors the sales and preliminary data from major Apple suppliers, Apple sales tend to increase in July due to anticipated release of the company’s new iPhone models.

A Drexel rep noted that last month was the second best July performance Apple had and sales growth are expected once iPhone 7 is launched sometime in September.

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