Apple Stock News: Apple and Amazon Join Forces in Lucrative New Partnership

Apple and Amazon’s New Partnership and What this Collaboration Means for the Stock

Based on Apple’s latest earnings report, iPhone unit sales are flat. The iPhone is reportedly not selling as well as expected, though the nearing holiday season will surely bring an expected spike. Global sales of tablets are also shrinking. It is therefore a great relief to learn that Apple successfully persuaded Amazon (AMZN) to sell iPhones and iPads in America and other countries. Amazon is the third-ranked vendor of tablets with its Fire Android products. It therefore came as somewhat of a surprise that Amazon agreed to be a direct reseller of iPads.

(Source: Statista)

Why Apple Needs Amazon

I previously harped about it many times – AAPL’s price movement is largely dictated by how many units of iPhones it sold.  AAPL dipped post-earnings last November 2nd because investors are scared that iPhone sales have peaked. The management’s decision to no longer report unit sales of iPhones going forward is worrisome for some investors. It was perceived as tacit admission that iPhone unit sales have really peaked.  The mood now is that Apple can no longer rely on the iPhone for growth.

(Source: Statista)

 

The dip in Apple’s valuation to below $1 trillion confirmed that investors care more for iPhone unit sales than any other metrics. It did not matter that Apple finished its fiscal year 2018 with record revenue and profit.  In spite of the flat lining unit sales of the iPhone, Apple’s $265.59 billion in FY 2018 revenue was still a 15.86% year over year increase. The annual net income of $59.53 billion saw an increase of 23.12% Y/Y. The pessimism over AAPL has gave it a lower EV/EBITDA valuation than MSFT and GOOG. This undervaluation is in spite of AAPL’s superior balance sheet and revenue/net income performance. Apple is clearly the better value play than its peers.

(Source: Seeking Alpha)

How Amazon Will Help

Going forward, Apple’s stock could rise again because of Amazon helping it sell more units of the iPhone and the iPad. Apple may no longer divulge specific quarterly unit sales for its products, but growth could still be surmised through improved revenue over the next succeeding years. Apple already has more than 500 retail stores around the world. However, Amazon touts more than 100 million Prime subscribers. They are all potential customers of Apple’s pricey products. There is also the strong possibility of Amazon offering subsidised price tags for the Apple Watch, iPhone, and iPad to select Prime subscribers.  Going forward, this potential Amazon subsidy could increase Apple’s hardware sales.

This partnership is also perfect timing for this upcoming Christmas shopping season. People around the world will be receiving their 13th-month pay and Christmas bonuses. Millions of Amazon shoppers will be capable of buying the most ‘affordable’ $750 iPhone XR.

A survey last July 2017 revealed that 59% of American respondents with income of $75K to $99K are Amazon Prime subscribers. Amazon’s Prime subscriber base definitely has wealthy individuals who can easily afford the most expensive Apple product. Statista’s chart below clearly illustrates that many Amazon Prime members are perfect targets for the new pricey iPhones and iPad Pros.

(Source: Statista)

Conclusion

It is a long-term tailwind for Apple that Amazon has agreed to become an authorised reseller of Apple watches, phones, and tablets. Amazon will also delist non-official resellers of Apple products on its marketplace by January 4, 2019. By eliminating unauthorised resellers on Amazon’s websites, Apple is assured of price uniformity for all of its products sold.  Eliminating price-cutting third-party sellers can improve Apple’s topline and bottom-line. It is an open secret that many unscrupulous individuals and organisations resell deeply-discounted stolen iPhones/iPads on online stores like Amazon.

Amazon is now also a massive sales channel for refurbished iPhones and iPads that Apple needs to unload. These refurbished products are from Apple’s own trade-in program. Apple practices device trade-ins so it could sell newer, more expensive models. The exchanged phones, tablets, and computers that Apple has stockpiled can be quickly monetised through Amazon.

I rate AAPL as a buy. This stock also has a bullish one-year forecast from I Know First. The high 0.81 predictability score means I Know First has a long track record of correctly predicting the 12-month price trend of Apple’s stock.

The vibe from monthly technical indicators and moving averages trends are in favor of going long on AAPL right now.

(Source: Investing.com)

Past I Know First Success with Apple Stock Prediction

I Know First has been consistent and accurate with AAPL stock predictions in the past.

This bullish 1 Month/3 Month/1 Year Forecast that was sent to our subscribers on August 22, 2017.

 To subscribe today click here.apple stock predictions

How to read the I Know First Heatmap

The article discussed possible acceleration of Apple’s research on Augmented Reality and self-driving car technologies as those are considered to be future diversification areas for Apple. Some key financial aspects were analyzed, including posting of a new record high of $162.51 at the end of August 2017. Finally, we expected that Apple coming up with a real major upgrade to the iPhone 7 could propel the stock to a new 52-week high. Since the forecast’s release, where the bullish signal of 131.7 was identified by the algorithm with predictability rate of 0.61, Apple Inc. stock price surged that high that on August 2, 2018 the company’s market capitalization became more than $1T and ended up on August 22, 2018 with stock price increase by 38.86%.

Summary:

    • This holiday quarter should see a notable increase in Apple’s hardware sales. Apple’s flat lining iPhone unit sales desperately needs a boost.
    • Amazon recently agreed to sell Apple Watches, iPhones, and iPad tablets in its U.S. and international online stores.
    • AMZN agreed to become an official Apple reseller. Amazon will delist unauthorized resellers of Apple products using its platform by January 4, 2019.
    • Amazon touts more than 100 million Prime subscribers. They are all desirable potential customers for Apple products. Buying online is faster than queuing up at an Apple retail store.
    • I still rate AAPL as a buy.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

Apple Stock News: Did Apple Benefit from Samsung defect?

Apple Stock News

For the latest Apple Stock News,  AAPL closed at $105.44 on Monday, September 12th, with a gain of 2.24%, or $2.31 from Apple’s previous closing of $103.13 Last Friday.

Did Apple Benefit from Samsung defect?

After the big Announcement of the brand new iPhone 7 we witnessed how Apples shares dropped by 4%.

Many people were shocked, and some may attribute to Wells Fargo downgrading the stock from outperform to market perform. As well Investors reacting to the possibility of the Federal Reserve raising interests rate.

apple-news

Apple still might of gotten a lucky break. Yesterday Apples biggest competitor in the cell phone industry Samsung (SSNLF) announced that they are having to recall their new Note 7 due to exploding batteries. Which couldn’t of been a better timing for Apple due to the first iPhone 7 being in store this week on Friday the 16 of September.

Without calling it a recall Samsung announced it would immediately stop selling the phones, and replace the 2.5 million it had already sold.

According to statistical calculation Samsung is selling 50 million phone this year.

Its is approximated that Samsung is losing 10% of its client base, which will most likely switch over to iPhone. Which is very crucial in such a close race between those two big competitors. This is believed to be the reason for the Apple stocks not only be stagnate also to increase by 2.24% since Monday and is up more than 2% today, in a good agreement with this bullish forecast on AAPL issued 5 days ago.

 

 

Apple Stock Forecast: An Algorithmic Analysis

Apple Stock Forecast

Apple announced the date for its 2015 second quarter earnings report, and will release its most latest quarterly figures and host a live conference call on Monday, April 27th. The stock price has skyrocketed over the last year, boosted by strong sales of its newest smartphones, the iPhone 6 and 6 Plus. After selling over 74 million such phones during the last quarter, it would be understandable to think that Apple could not live up to the lofty expectations set for it this quarter. But Apple is set once again to blow past expectations and surge even higher in coming months, as I Know First correctly predicted it would in an article after the last earnings report. Continued rapid sales of the new iPhones, deeper expansion into the enterprise segment, and an increase in the capital expenditure program mean Apple is still bullish looking ahead to the end of the month, and should continue trending higher afterwards.

iPhone Will Continue To Post Strong Sales Numbers

As I mentioned, the Apple sold over 74 million iPhones last quarter, a record number for any quarter. While the tech giant will not post that high of sales again this quarter, the sales numbers will continue to beat expectations, based off a number of factors. During the last quarter, Apple got a large percentage of its sales from customers that switched from other mobile platforms, namely Android. That means a great number of iPhone users are yet to upgrade their phones, which should drive sales during this quarter.

Apple is also hoping to continue to switch users from other mobile platforms during the current quarter. The company recently introduced an expanded trade-in program, now letting customers trade in non-Apple smartphones to get credit towards a new iPhone. Before, customers could only trade in older models of the iPhone to get credit, but several models including Samsung, HTC, LG, Sony, BlackBerry, and Nokia can all be traded in as part of the expanded program.

This coincides with the upcoming release of the Samsung Galaxy S6 and S6 Edge, Samsung’s new flagship programs. The models are set to be released around the world on April 10th. Apple is trying to convince potential customers to upgrade to an iPhone 6 or 6 Plus before they upgrade to the new Samsung Galaxy device. They can do so either online or in an Apple retail store.

Sales will also be helped as customers in general are upgrading their phones more often. Mobile carriers like AT&T, Verizon, T-Mobile, and Sprint have been very competitive with each other over the past couple of years, and have been offering incentives to keep customers and to try to attract rivals’ customers to switch carriers. One such incentive is offering faster smartphone upgrades, including the iPhone. The quicker upgrades will help sales. Gross margins will also be benefitted, as costumers are opting for models with larger quality to account for higher-quality cameras and increased app usage.

Expanding Deeper Into Enterprise Segment

Apple’s iPad sales have been slipping in the last few years, as the life span of the device is greater than that of the iPhone. Customers do not feel the need to upgrade devices as often, and the larger iPhone 6 Plus has been cannibalizing some of the sales of the iPad Mini. To address the concerns of waning sales, Apple entered into a partnership with IBM last July, in which the two companies target enterprise customers in the hope that businesses will buy iPads for their employees.

The partners released their first ten apps in December, and have been sporadically releasing new apps since then. Now, the companies have released eight more apps, adding three more industries in the process. The apps now address nine different industries in all, including banking, utilities, government, healthcare, manufacturing, insurance, retail, telecommunications, and transport.

The most interesting of the apps just released are the healthcare ones, such as the Hospital RN app for the iPhone. It works to reduce the operational costs associated with managing patient information by connecting with a hospital’s own systems. Other hospital apps that were released focus on organizing and prioritizing task assignments, both for the iPhone and the iPad.

The two companies continue to be on track to deliver 100 apps by the end of the year, as Apple CEO Tim Cook promised it would when revealing the partnership. Should the partnership work out as the companies hope, it could be a big threat to Microsoft’s dominance in the enterprise. Cook has not revealed much information about how many enterprises are buying these custom apps to run on new iPhones and iPads, and the earnings report at the end of the month could be the first time results are shared.

Algorithmic Analysis

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The algorithm has more data to forecast within the long term and, naturally, outputs a more accurate predication in that time frame. Having said that, intraday traders, along with short-term players, will also benefit by taking the algorithmic perspective into consideration.

The self-learning algorithm uses artificial inelegance, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets. The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

Alg An 3 mo

The forecast included above is a three-month algorithmic prediction including Apple. In this forecast, the company had a signal strength of 226.20 and a predictability indicator of 0.38. The stock price increased as the algorithm predicted, rising 13.42%. A 1-year forecast is included below, also including Apple. Once again, the stock price for the company rose as the algorithm predicted, soaring 70.42% in just one year.

Alg. An

Having illustrated how I Know First’s algorithm has accurately predicted the stock price of Apple in the past, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. Figure 2 includes the one-month and three-month forecasts for Apple from April 2nd, 2015. In both forecasts, the company has a positive signal, indicating the algorithm is bullish for the stock.

apple stock prediction for q2

The bullish forecast before the earnings report makes sense, as the stock price is set to move higher in the next few months. Besides the strong expected iPhone sales and expansion into enterprise apps, Apple is also expected to increase its capital return program, with a predicted increase in the share repurchase program from $90 billion to $120 billion. The dividend is also predicted to increase 10%. Besides the return of capital to investors, Apple also has a very reasonable valuation, with a forward P/E ratio of only 14, below that of the S&P 500 even though the company is experiencing revenue growth because of strong iPhone sales. Along with the first information surrounding the Apple Watch, the earnings report on April 27th is sure to be filled with promising information, and the stock price is set to soar as a result.

AAPL Stock Price: 73.88% Return In 1 Year

AAPL Stock Price

This Best Tech Stocks forecast is designed for investors and analysts who need predictions of the best performing stocks for the whole Technology Industry. It includes 10 stocks with bullish and bearish signals and indicates the best tech stocks to buy:

  • Top 10 tech stocks for the long position
  • Top 10 tech stocks for the short position

Package Name: Tech Stocks
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 1 Year (02/28/14 – 2/28/15)
I Know First Average: 18.73%
Get the “Top Tech Stocks” Package.

AAPL Price

 

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast, while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance:The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating, and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading. 

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

Apple Stock Price: 42.28% Return In 1 Year

Apple Stock Price

This Best Tech Stocks forecast is designed for investors and analysts who need predictions of the best performing stocks for the whole Technology Industry. It includes 20 stocks with bullish and bearish signals and indicates the best tech stocks to buy:

  • Top 10 tech stocks for the long position
  • Top 10 tech stocks for the short position

Package Name: Tech Stocks
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 1 Year (12/31/13 – 12/31/14)
I Know First Average: 38.24%
Get the “Top Tech Stocks” Package.

 Apple Stock Price

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast, while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance:The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating, and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading. 

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

.

AAPL Stock Price: 2.08% Return In 14 Days

AAPL Stock Price

This forecast is part of the “Risk-Conscious” package, as one of I Know First’s quantitative investment solutions. We determine our aggressive stock picks by screening our database daily for higher volatility stocks that present more opportunities, but are also more risky. The full Risk-Conscious Package includes a daily forecast for a total of 40 stocks with four main categories:

  • top ten aggressive stocks picks that best fit for long position
  • top ten aggressive stocks picks that best fit for short position
  • top ten conservative stocks picks that best fit for long position
  • top ten conservative stocks picks that best fit for short position

Package Name: Risk-Conscious
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 14 days (12/14/2014 – 12/28/2014)
I Know First Average: 5.48%

Get the “Risk-Conscious” Package.

aapl stock price
Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast, while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance:The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating, and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading. 

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks..

AAPL Stock Price: Up To 11.85% Return In 3 Months

AAPL Stock Price

This Best Tech Stocks forecast is designed for investors and analysts who need predictions of the best performing stocks for the whole Technology Industry. It includes 10 stocks with bullish and bearish signals and indicates the best tech stocks to buy:

  • Top 5 tech stocks for the long position
  • Top 5 tech stocks for the short position

Package Name: Tech Stocks
Recommended Positions: Long & Short
24 07 2013 10 48 51 Algo Trading: Up To 20.30% (Long) & 30% (Short) Return In 3 MonthsForecast Length: 3 Months (9/23/14 – 12/23/14)
I Know First Average: 13.11%
Get the “Top Tech Stocks” Package.

 

AAPL stock price

 

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast, while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance:The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating, and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading. 

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

.