Apple stock may have slipped after its latest results, but a closer look suggests that the worst may be over. The company’s iPhone revenue is likely to resume growth in the second half of 2023 with the release of the iPhone 15 lineup. Apple’s revenue growth is expected to pick up as the smartphone market recovers and a new iPhone upgrade cycle begins.

Harsh Chauhan, The Motley Fool:

Share prices of Apple slipped nearly 5% after the company released fiscal 2023 third-quarter results (for the three months ended July 1) on Aug. 3. Apparently, investors pressed the panic button following yet another quarter of declining iPhone sales and tepid guidance. But savvy investors might want to take advantage of this decline for one simple reason.

[T]he iPhone lineup is selling well even in difficult times.

According to market research firm IDC… the phone’s share of the global smartphone market increased to 16% last quarter from 15.8% in the same quarter a year ago… the average selling price (ASP) of each iPhone came in at $933 last quarter. This was a 4% increase over the prior-year period’s figure of $895. So, Apple was able to command more money per unit even during difficult times for the smartphone market.

This should set the stage for a rebound in the device’s revenue in the second half of 2023 for a couple of reasons.

First, the smartphone market is expected to return to growth by the end of the year, according to IDC… The second reason iPhone sales could start picking up from the second half of 2023 is because of a big base of users currently in an upgrade window. Dan Ives of Wedbush Securities estimates that there are 250 million iPhones that haven’t been upgraded in more than four years… Even better, Ives expects Apple’s smartphone ASP to rise further with the arrival of its next generation of smartphones next month.

MacDailyNews Note: In pre-market trading, Apple shares are currently up $1.14 (+0.63%) to $180.94.

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