Apple Stock News
For the latest Apple Stock News, AAPL closed at $103.13 on Friday, September 9th, with a loss of 2.26%, or $2.39 from Apple’s previous closing of $105.52.
Latest updates on Apple Inc.: Are Investors Overreacting To The Sell-Off?
Since September 7, 2016, after Apple’s latest product announcement of the iPhone 7, and launch dates of its operating systems, Apple stock has been down by over 4%. Some may attribute to Wells Fargo downgrading the stock from outperform to market perform or investors reacting to the possibility of the Federal Reserve raising interests rate. However, investors may also be uneasy of Apple’s decision to remove a feature from its phones that has been in use since the 1950s? Apple’s iPhone7 is removing the standard 3.5 mm jack, for the new Bluetooth airpod, using lightning technology. Many view this as the beginning of portable electronic devices phasing from auxiliary to lightning. However, lightning technology has been around. During Apple’s presentation, Tim Cook, CEO of Apple, rest assured viewers there are over 900 million lightning connector devices. The technology has been there, and Apple, as a leader in innovation, is taking the step to incorporate it into their phones. Apple’s decision to take a risk in this matter, does not mean auxiliary devices will be incompatible with the new phone. Each iPhone7 will be equipped with an external adapter.
Why the inevitable change?
Smartphones has been advancing in features while the devices are getting more portable. Each features, such as the auxiliary port, takes valuable space from the phone. By incorporating lightning technology, it will free itself of an old technology which requires to convert digital to analog (a pre-digital technology) to be sent through the 3.5 mm jack. By removing this feature, listeners can experience digital to digital sound in a faster rate of transfer and higher sound quality.
- Expensive Airpod $159
- Uncertain about durability and reliability
- Difficult use for smartphone credit card readers, such as Square Readers. The adapters may not be designed to withstand the approx. fifteen pounds of force necessary to swipe the card horizontal for the reader to recognize the card.
Apple stock may be continuing its sell off trend as investors are wary of the technology change; however, in the long run this was an inevitable move by Apple to continue being a leading innovator in its industry and to phase out from using pre-digital technology from its devices. There are no rewards without taking risks.