A broad market sell-off following more bad news for the economy weighed on Apple (AAPL -1.00%) stock today. As of 11:00 a.m. ET, the shares were down 2.2% on Friday.
As Apple officially released the new iPhone 14, FedEx spoiled the fun by reporting lower-than-expected earnings results, which has stoked investor fears that the economy is tipping over into a recession. The market sell-off has made it a choppy year for Apple stock, which is currently down 16% year to date.
Early signs are pointing to high demand for the pricier iPhone 14 Pro models, while the standard iPhone 14 and 14 Plus are showing low interest. Some models for the Pro version are currently showing delivery times extending to the end of October, exceeding expectations.
Analyst Amit Daryanani at Evercore ISI recently said in a report that this scenario could have a significant positive impact on Apple's profit margin for the quarter.
However, news that FedEx missed on revenue and profits in its latest quarter drowned out positive news around iPhone demand. There was a lot of news out this week sending negative signals to Wall Street about the economy, which weighed on all stocks.
Analysts expect Apple to report $88.68 billion in revenue for the fiscal fourth quarter ending in September. However, that would only reflect a small slice of the iPhone demand.
Looking ahead through the December quarter, analysts expect revenue to be $127.9 billion, up 3% year over year. Apple will be up against a tough year-ago comparison, when revenue grew 11%. The iPhone maker's ability to continue posting upside to its numbers in a weakening economy is why it's a top tech stock to hold in this bear market.