If we take the last 4 iPhone product events historically speaking, the stock has performed reasonably well trading up around 1% on the actual day. In addition up around a similar amount between the event and subsequent launch of product, usually occurs around 2 weeks later. The leak of features certainly earlier in the week took the surprise out of the event to some degree. In addition with the stock up almost 40% this year alone being 1 of the top picks for hedge fund positioning – it’s a possibility investors would have likely taken some risk off before an occasion as large as this.
The much anticipated outcome is an iPhone 8 and 8s in addition to iPhone 10, but X is used as in Roman numerals. If we drill down into the features it would seem Apple has positioned itself for the super-premium/high end of the mobile phone market with better quality screen & processor chip, and with other advances like being water resistant, wireless charging and facial recognition software.
In my view these are what I would call incremental gains and as much as these will be impressive packages, these are not what I would call ground breaking innovations. Not doubt these features will be well received through Apple fan boys/girls (myself included) but have Apple positioned themselves too high end with the $1000 price tag – certainly the reaction from the stock – although initially higher to $163 is now actually down on the day.
can we possibly conclude this is a general malaise for the new features ? Or is this too early to tell?
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