Apple pullback puts $330 support back in focus

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Apple steadies after sharp pullback

Softer PCE eases pressure from rates

August PCE rose 0.3% m/m, in line with expectations, while annual inflation slowed to 3.4% versus the 3.7% forecast and 3.7% previously. Core PCE looks even more notable, coming in at 3.0% y/y versus the expected 3.3% and 3.3% a month earlier. For AAPL, this is generally a positive signal, as faster slowing in core inflation reduces the risk of further Fed tightening and may limit the rise in U.S. Treasury yields.

This is particularly important for highly valued technology companies. If the market starts pricing in a softer rate path, pressure on valuation multiples could ease. At the same time, one PCE report is not yet enough to completely change rate expectations, especially after strong employment data.

Apple reshapes operations and expands smart home push

Within Apple itself, two long-term factors are forming at the same time. New CEO John Ternus is beginning to reshape the company with a greater focus on engineering teams, a faster development cycle, and reductions in some management layers. Some positions in hardware engineering and program management have already been affected, while the company is also discussing a less rigid link between new product launches and its traditional spring and fall presentations.

At the same time, the company is preparing to make a more serious push into the smart home market and unveil new products in this category on October 13. For investors, the combination of these factors is important because Apple is trying to accelerate development while expanding its ecosystem beyond the iPhone, Mac, and wearables. If the smart home business can be integrated with Siri, AI features, services, and the existing installed base of devices, the segment could become not just another hardware category, but an additional monetization channel for the entire ecosystem.

The company’s fundamental base remains strong. In the latest quarter, revenue reached $109.4 billion, up 16%, EPS rose to $2.02, while iPhone, Mac, and Services all showed strong performance. The market is now looking not only at iPhone 18 sales, but also at Apple’s ability to open up the next meaningful source of growth while maintaining high profitability amid rising investment in AI and new products.

$342–345 remains key barrier for bulls

The bulls’ failure to break through resistance around $342–345 triggered profit-taking on long positions, but the decline in AAPL, as expected, was limited by support around $330. After testing this level, the stock is rebounding, which could lead to another test of the above-mentioned resistance.

A breakout above this resistance would lead to a move toward $350. Otherwise, as noted in Apple pulls back from $340 as margin and demand concerns return, a decline toward at least $330 should be expected.

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