“The short interest in Apple Inc. dropped by 2.7 million shares to 39.1 million ahead of earnings,” Douglas A. McIntyre writes for 27/7 Wall St. “The figures are for the period that ended July 14.”

“Apple’s share price, and perhaps the fall-off in short interest, are due to the anticipation of the iPhone 8, which is likely to come out in September or October,” McIntyre writes. “The expectation [is] that the iPhone 8 will be a big leap forward in terms of features and functions. “Samsung, its primary rival, does not have a popular product in the market. Most of Apple’s other competitors are Chinese companies that have a strong share of their home market but not anywhere else in the world.”

“Short sellers also have to know that Apple’s earnings are about to be released,” McIntyre writes. “If results exceed expectations before the iPhone 8 is even launched, the shares could surge. It has happened before.”

Read more in the full article here.

MacDailyNews Take: Optimism.

Apple will announce results on August 1st after market close, typically right around 1:30pm PDT / 4:30pm EDT. As always, we’ll bring your the results as soon as they are available (simply check our home page at 4:30pm EDT on August 1st). We plan to cover the conference call with live notes as usual. That link will appear on our home page around 4:45pm EDT on August 1st.

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