To The Moon

Consumer electronics giant Apple (AAPL) has seen its shares pummeled this year on concerns about weakening macroeconomic conditions, slowing growth and supply constraints. But with the pullback in Apple stock, many investors are wondering if AAPL stock is a buy right now.

Apple Stock News: iPhone 14 Sales

On Sept. 7, Apple introduced its third-generation 5G smartphones, the iPhone 14 series. It also debuted its Apple Watch Series 8 smartwatches and second-generation AirPods Pro wireless earbuds. Apple stock rose 0.9% on the news.

Analysts praised the innovative new devices but some worried that the premium products would be a tough sell in the current economic climate.

Demand for the high-end iPhone 14 Pro models has been strong, while sales of the regular models have disappointed.

Apple rounded out its lineup of holiday products on Oct. 18 with new iPads and an upgraded Apple TV streaming video box. AAPL stock advanced 0.9% that day.

On Nov. 6, Apple warned that a Covid outbreak at a factory in China will limit its availability of iPhone 14 Pro and Pro Max handsets this holiday season. The Foxconn-owned factory is "operating at significantly reduced capacity" because of Covid restrictions, Apple said. The factory later saw worker protests that turned violent, according to news reports.

Wall Street analysts slashed their iPhone sales forecasts for the December quarter because of handset shortages related to the factory issues.

Apple Opportunities For Growth

With the iPhone business maturing, investors are wondering what the next big growth driver will be for Apple stock.

Recently, two businesses have given Apple's sales and profits a boost: services and wearables.

However, analysts are concerned about slowing growth lately for Apple's services business.

In the September quarter, Apple's services revenue rose just 5% year over year to $19.2 billion. Services include the App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade and other offerings.

In late October, Apple raised prices for the first time on its Apple Music and Apple TV+ services. It also hiked the price for its Apple One services bundle.

Meanwhile, Apple is facing antitrust scrutiny in the U.S., Europe and Asia for its App Store policies, including its 30% commission fee.

Apple Product Rumors Persist

Apple's Wearables, Home and Accessories unit saw sales rise 10% to $9.7 billion in the September quarter. This unit includes wearables like the Apple Watch, AirPods wireless earbuds and Beats headphones. It also contains the Apple HomePod Mini wireless speaker and other miscellaneous gadgets.

News leaks suggest that Apple will announce a headset for virtual reality and augmented reality in 2023. The computer headset could be a driver of Apple stock, analysts say.

Meanwhile, speculation continues that Apple is looking to make a self-driving electric car.

Apple Earnings: Solid Beat

Late on Oct. 27, Apple beat Wall Street's targets for its fiscal fourth quarter thanks to strong iPhone and Mac computer sales. Apple stock jumped 7.6% in the next trading session.

Apple earned $1.29 a share on sales of $90.1 billion in the quarter ended Sept. 24. Analysts polled by FactSet expected Apple earnings of $1.27 a share on sales of $88.7 billion. On a year-over-year basis, Apple earnings rose 4% while sales climbed 8%.

However, Apple cautioned that it expects slower sales growth in the holiday quarter.

In the September quarter, Apple's iPhone revenue increased 10% to $42.6 billion. Smartphones accounted for 47% of the company's total sales in the period.

Meanwhile, Apple's Mac computer sales jumped 25% to $11.5 billion.

Apple's iPad unit was the only product category to post a drop in sales in the quarter. IPad sales declined 13% to $7.2 billion in the fiscal fourth quarter.

The company's next earnings report won't be until late January.

Apple Stock Retreats From High

In intraday trading on Jan. 3, Apple briefly hit a market value of $3 trillion when its shares reached 182.86. Apple stock climbed as high as 182.88 that day before retreating. It was the first company to reach a market capitalization of $3 trillion.

On Jan. 4, Apple stock again reached the $3 trillion mark. It notched a record high of 182.94 before pulling back. AAPL stock trended lower in the weeks that followed but it has attempted to rebound several times since then.

Apple stock is not a buy right now. It is trading well below its official buy point.

DYODD @TigerStars