Apple Inc (AAPL) Stock Positive Growth To Continue in 2015; Analysts Mixed On Apple Watch Performance

Apple Inc (AAPL) stock growth is predicted to maintain a positive trend going into 2015, following analysts' Buy ratings on company shares as 2014 ends. Apple shares have increased by as much as 33 percent, but it has declined 8 percent since late November.

According to Barclays' analysts, some stock markets like Russia can expect to see the effects of macroeconomic and geopolitical volatility. However, analysts Ryan Jones and Ben Reitzes both said Apple is doing well in the United States, China and Europe right now.

The analysts believe current Apple gross margin estimates will continue to remain conservative in the longer term as they think the numbers may be a "multi-year" part of Apple's business. In a Valuewalk report, Barclays expects foreign currency to continue affecting Apple's performance. Currency headwinds are predicted to be offset by Apple's stronger than expected margins.

As investors anticipate the release of the Apple Watch early in 2015, analysts expect the company's first smart wearable device to perform well in the market starting in March and will continue for years. The analysts see a gross margin of about 50 percent like Apple's iPhones.

The long-rumoured 12.9-inch iPad Pro is also predicted to boost the iPad's gross margins in the long term. Apple Pay is believed to continue as a bigger part of Apple's business and revenue mix for years. Barclays analysts also noted that Apple can increase its prices in foreign markets to protect against exchange rate volatility. The move may weaken product demand, but Apple's margins would remain intact. Demand for the iPhone 6 will continue to remain strong through March with build trends indicating more than 70 million unit sales compared to consensus iPhone sales estimates of less than 65 million.

Goldman Sachs analysts also believe that Apple's iPhone 6 demand will remain strong in the coming months. However, the firm is not that optimistic of the expected performance of the Apple Watch. The analysts at Goldman do not think Apple Watch will bring more to the table in terms of it being a standalone device. On the upside, they believe Apple's wearable device will be a "critical platform enhancement."

Meanwhile, Apple has spent $56 billion in the fiscal year on stock buybacks with $17 billion in the last quarter alone. According to report by FactSet that appeared on Marketwatch, the top two stock buyback quarters in the S&P 500 list were by Apple. The $17 billion Apple had spent to repurchase its stocks in the last quarter was second to its own recorded buyback in the first quarter of 2014 which was worth $18.6 billion, Apple Insider reported.