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Apple’s Stock is on a Tear

by Kerry Dawson

This week (week of March 18th 2019) Apple launched new product that has the market buoyant. These products are hardware products and people have been quite excited about the news. They introduced:

  • iPad Air 10.5″
    – Refreshed and powerful iMacs
    – iPad mini
    – AirPods 2

And possibly still to come:

  • iPod touch
    – Airpower

The above, for so early in the year, is very significant. However, what is being waited for is Apple’s launch of a streaming service more than likely on Monday March 25 2019.

Hardware Updates

The introduction of a streaming service tomorrow is what is propelling the stock to a buy and then this week to a strong buy. iPhone revenues, which has been expected due to such things as saturation and competition, is on the decline. The need for a new source of revenue is strong and fortunately Apple has in its kitbag a wide range of excellent product. Tapping into the power of the AppleTV is something that has been long awaited by consumers of Apple.

Revolutionizing the TV

The streaming service has been highly anticipated. Expectations are huge for a top notch service. However, if anyone can bring a desirable streaming service to the market Apple can. They have a lot of money in the bank to invest and if they do this wisely the move to cord cutting will only increase substantially. Apple has has at times lingered entering markets but when they do they have large impact as they know what the problems are and how to solve them. The technologies they then introduce are refined and can be revolutionary in their impact.

It is expected Apple is going to release a streaming service that could include:

  • Apple created programming
    – the combining of various services
    – TV
    – Movies
    – Outstanding entertainment productions such as HBO, Showtime etc.

Apple’s coming to the Game Late provides an Advantage

Apple has iTunes and the store in which you can buy or rent content. However, they lack streaming services something which could be very exciting. They know how the industry has evolved and what works and doesn’t and further they are all too aware of what’s missing. They can easily put together a very desirable package. Unlike hardware, this would be revolving revenue and if handled well will lead to good growth.

As such, the market and Apple’s stock value is responding. Should people be disappointed by the March 25th show the stock value could quickly fall. On the hand, if the service is deemed a hit then the upside could be very positive.

Over-reliance on the iPhone

There has been a concern for a while regarding Apple’s heavy reliance on the iPhone profits in a market rapidly saturating. With Apple’s deep kitbag there has been a lot of disappointment that Apple hasn’t positioned its other products well. As an example, the Apple portable computer has always been desired but in recent years, though it is still nicely designed, some have felt Apple is letting them fall off the cliff by letting the hardware date too much. This also seems to be changing as Apple is now paying more attention to its user base which are a very loyal group.

The presentation starts at 1pm EST and it is probably well worth tuning in to if you have the time. Apple is aware that the internet, digital content and streaming content is revolutionizing the television. The freedom of choice as to what to watch, when and on your terms has never been so important as people find themselves under time pressures. There is still a need for the relaxation and distancing a good show provides in a rather stressed electronic world.

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