Apple stock is currently facing obstacles as it attempts to surpass the $200 mark due to concerns over the sales performance of its Watch and iPhones. However, industry analysts are optimistic that these issues will only be temporary setbacks.
Apple Watch Patent Dispute
Apple is currently embroiled in a patent dispute with medical-technology company Masimo pertaining to the blood-oxygen sensor featured in certain versions of the Apple Watch.
To comply with a U.S. import ban on these devices, Apple has decided to temporarily halt sales of its Apple Watch Series 9 and Apple Watch Ultra 2 exclusively to customers in the United States.
If Apple fails to secure a stay on the import ban or implement a software update to address the contentious technology, industry analyst Richard Windsor suggests that the company will likely come to a settlement with Masimo and pay a per-unit royalty.
Although the Series 9 and Ultra 2 may not be available for purchase during the holiday season, Windsor believes that Apple will find a solution by the start of the new year.
Concerns over iPhone Sales in China
Recent reports indicate growing concerns over iPhone sales in China due to increased restrictions imposed by Chinese agencies and government-affiliated organizations. These restrictions prohibit employees from using iPhones and other foreign devices at work, expanding on similar measures implemented in September.
However, the impact of these government restrictions on consumer behavior remains uncertain.
Wedbush analyst Daniel Ives believes that while worries persist regarding these "shadow government bans," the issue can be contained. Ives states that based on recent checks, demand for Cupertino's products in this crucial market has not been affected.
Ives maintains an optimistic outlook on Apple stock and has set a target price of $250, along with an Outperform rating.
Analysts Bullish on Apple's Future
Daniel Ives is recognized as one of Wall Street's most bullish voices when it comes to Apple. He even anticipates that the company could achieve a market capitalization of nearly $4 trillion by the end of 2024.
In premarket trading on Tuesday, Apple shares showed a modest increase of 0.3% and were priced at $196.41.