Apple Stock This Week


Apple stock continued to lose ground this week, underperforming the S&P 500's 2.5% gain with a 1% loss. Zooming out, however, it's clear Apple may simply be taking a break from its massive run-up during the past six months.

AAPL Chart
AAPL Chart

AAPL data by YCharts

Whatever the reasons for Apple's slight decline during the week, the past five days were certainly packed with nuggets for Apple investors. Most notably, Apple finally launched its radically redesigned Mac Pro.

The new Mac Pro
Before the latest refresh, the last Mac Pro launch was in 2010. Waiting for years, there was apparently some pent-up demand when Apple announced this week that the high-end computer would go on sale Thursday; on Apple's website, shipping dates have already slipped to February.

Apple's new Mac Pro. Source: Apple website.

The computer is certainly an upgrade from its predecessor.

Its cylindrical shape is shockingly different from the first generation. Apple's press release announcing availability gives details on the dramatic change in form-factor.

Designed around an innovative unified thermal core, the all-new Mac Pro packs unprecedented performance into an aluminum enclosure that is just 9.9 inches tall and one-eighth the volume of the previous generation.

The guts, too, are light-years better. It's up to two times faster than the previous generation and supports 4K video.

Source: Apple website.

Despite the irrefutable cool factor Apple achieved with its new Mac Pro, Macs now account for only 15% of its revenue. So even if the Mac Pro is a success (and shipment estimates indicate there is certainly considerable demand), Apple's biggest drivers are its iPhone and iPad segments, which together account for about 69% of its top line.

China Mobile
Other big Apple news during the week focused on the company's alleged agreement with China Mobile. Though the deal will undoubtedly ad incremental value to Apple's bottom line, The Wall Street Journal's prediction for an iPhone launch with the world's largest carrier to take place on Dec. 18 turned out to never pan out. KGI Securities analyst Ming-Chi Kuo speculates that China and Apple could be renegotiating the deal because of a higher-than-expected skew in demand toward the higher-end iPhone 5s among the two flagship phones.

How Apple disrupted an industry
Probably one of the most interesting stories of the week was an inside look at how Apple may have spooked chipmakers more than they let on when Apple introduced a 64-bit A7 processor. Apple's move to 64-bit architecture came sooner than the industry expected and it caused a bit of panic, according to one Qualcomm employee.

As we wrap up the week, a review of the week's Apple stories suggest none of them were big enough to change the outlook for Apple's business. Importantly, however, the China Mobile story should continue to be watched closely as it unfolds. If Apple can't make an arrangement with the world's largest carrier, the company could be missing out on a significant opportunity. Though given the extent of the opportunity (and the ongoing speculation that a deal is inevitable), Apple will likely find a way to make it work.

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Fool contributor Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple and owns shares of Apple, China Mobile, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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