Apple’s 2024 Outlook: 2 Game-Changing AAPL Stock Catalysts to Watch

Stock Market

Can Apple (NASDAQ:AAPL) stock have a “magnificent” performance this year, like it did in 2023? Apple’s investors should have realistic expectations on Wall Street. Despite being a large company, Apple still faces uncertainty in certain areas.

We’ll address Apple’s challenges in a moment. If you already own Apple stock, you’ll likely want to continue holding or possibly add more shares. Most importantly, know your time frame in advance and, unless you plan to hold your Apple shares for decades, think about what you’ll do if the trade goes against you.

Could Soft China Smartphone Sales Help AAPL Stock?

Regarding Apple in 2024, two areas of uncertainty immediately come to mind. First, there’s no guarantee that Apple’s Vision Pro mixed-reality headset will be a strong seller. This device carries a hefty $3,499 price tag, and one estimate claims that a high-end Vision Pro headset could cost $4,363 after taxes.

Eventually, Apple could market this device, or a version of it, to a variety of businesses. There may be use cases for the Vision Pro headset in teaching, automobile repair and even surgery.

However, this is just a concept now and it remains to be seen if there’s strong demand for mixed-reality headsets in these areas.

Another well-known issue for Apple is the company’s lackluster smartphone sales in China. However, looking ahead to the future, Evercore analyst Anit Daryanani sees a silver lining to this problem:

“We maintain our bullish stance on Apple and think buy-side expectations are likely below current consensus, so an in-line quarter would likely drive upside, especially if Apple can point to continued solid iPhone performance in China.”

If Apple can show notable improvement in China smartphone sales, there could be a swift rally in AAPL stock. Still, this is a scenario that might or might not play out in reality. We’ll just have to keep tabs on Apple’s data in the coming weeks.

Apple’s Growth May Depend on AI Smartphone Features

Of course, no discussion about Apple’s technology tools can leave out the topic of artificial intelligence features. Without gen-AI functionality in its products, Apple would get left behind in the tech-gadget market.

There’s no need to worry about this, Bank of America analyst Wamsi Mohan seemed to suggest in his recent commentary. He expects Apple to “introduce AI driven features in iOS18 with monetization through better iPhone hardware and AI enabled third party apps.”

Furthermore, Mohan and other Bank of America analysts anticipate a “stronger multi-year iPhone upgrade cycle driven by need for the latest hardware to enable Generative AI features to be introduced in 2024/2025.”

It’s a reasonable expectation which seems to be echoed in a remark made by Melius Research analyst Ben Reitzes. He’s looking forward to “new product launches and an AI strategy” at Apple’s “Developer Forum in June.”

Apple Stock: See Both Sides of the Debate

Staying objective means seeing both sides, bullish and cautious, for any stock. This even applies to a tech-gadget juggernaut like Apple. In 2024, extra due diligence will be needed if you’re thinking about buying and/or holding Apple stock.

Going forward, watch closely for fresh data on Apple’s mixed-reality headset and smartphone sales in China. Also, look for Apple to develop new and interesting AI features for its iPhones and other devices, and above all else, keep your position size and your expectations reasonable with AAPL stock this year.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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