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Introduction

Apple AAPL shares continue to shine this month and this $2.4 trillion market cap firm’s Q3 FY21 results on July 27 has shown that it is able to maintain its profitability and growth. On top of that shareholders are also going to like its ability to commit to buybacks and dividends.

One of AAPL’s strengths that deserve mention is the fact that the company has shown that it is not over reliant on its iPhone business.

Apple’s Core Business

Apple’s smartphone sales account for about 49% of Q3 revenue. Do take note that a couple of years ago iPhone sales make up quite a large part of its sales, up over 60%.

Last quarter Mac sales showed a respectab;e 16% and iPad rose 12%. Apple’s wireless headphones and other devices helped its Wearables, Home and Accessories space rise up to 36%. Apple’s services unit rose 33% accounting for 22% of sales—making it the second most important category after the iPhone. 

Technical Analysis

As seen on the daily chart of AAPL above, the break of slanting resistance on the 22nd June 2021 to the upside led to a bullish run that did not recede until the $150 price zone was reached. 

From there we can see that price is now trading within a tight pennant. I would like to highlight here that that is a pause and a bullish one. 

I believe a break of the pennant to the upside may see the price of AAPL rise to test the top part of the bullish channel around the $153 price zone. 

A break below the pennant and we may see lower prices towards the $143 support zone. 

Conclusion

With a good balance sheet and products that are coveted by consumers, Apple is a company that continues to grow and gain strength. It is a good stock and would do well to add to one’s portfolio. 

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