The share price is poised at new highs and can break through if the products please consumers and investors
It’s been two years since there was so much anticipation around one of Apple’s famous product unveilings. Beside the latest iPhone, it’s expected that this time we really are going to see something new – the iWatch and a mobile payments service, bringing wearable tech and fast transactions to the masses. But will it be enough to continue the stocks’ formidable rise?
Today’s price of 98.31 is around the peak of this years’ bull run of 27%. After the stock split and buy-backs of late, it’s been an almost unanimous “buy” from investors, also partly related to the big expectations for this product launch. It could be a stepping stone if the products manage to rise to the occasion. The company will not only be associated once more with what’s new, but their margins and turnover will increase substantially.
Many think Apple has been playing catch up in the last several years, but this time they might have a game changer in their hands. Or several at that. The iPhone 6 comes in two sizes, with one being dubbed the “phablet” for its increased screen area, as well as serious hardware and software upgrades. The iWatch is not the first wearable tech out there, but could lift the whole segment which hasn’t managed to gain strong traction with consumers.
Johnathan Ive, the chief designer of the iWatch, is so confident that it will change the watch industry, that he remarked that Switzerland’s century old dominance in the area is coming to an end. This could be the second country ruined by Apple after Finland!
Samsung and Google are also expecting the announcement and their shares might see some movement after the unveiling. There will be inevitable and quick comparisons with their products, but it’s largely seen to be a win-win for them – increased awareness for wearable tech and mobile payments will lead more people in those markets as a whole, even if they don’t turn out to have the best product.
We’ll see if the event and the products deliver on the initial buzz, but one thing is for sure – everyone will be (i)watching.
Let us know if you think Apple will manage to impress with its new products or they’ll still be behind after today.