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?

Jordan Hiscott,
Chief Trader

Disclaimer

The views and content expressed above are the views of the author and do not reflect the views of ayondo markets. This service is for information only and should not be interpreted as investment advice or any recommendation to enter into a financial transaction.

 

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