Apple Stock Forecast: The $299 Apple iPad 2018 Is A Killer Gaming/Enterprise-Level Tablet

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

Summary:

  • The new 9.7-inch iPad 2018 is not only intended for the education market. It can also appeal to home and business/enterprise users.
  • Apple equipping the $299/$329 iPad with A10 Fusion CPU/GPU also makes it the best gaming tablet.
  • The 6-core PowerVR GPU of the quad-core A10 Fusion SoC is almost as good as the A11 Bionic’s Apple-made GPU.
  • Apple is taking a risk. The $299/$329 9.7-inch iPad might cannibalize future sales of premium $649++ iPad Pro models.
  • On the other hand, Apple could likely increase the total addressable market of its tablets by catering to price-conscious customers.

Apple (AAPL) ended 2017 as the top vendor of tablets with more than 26% of global market share. I expect it to remain the leader in tablet shipments for many years to come. Apple’s decision to offer its latest sixth-generation 9.7-inch iPad for just $299 to students/schools (and $329 to regular customers) can help it sell 13 million+++ tablets quarterly.

The future impact of Apple’s event yesterday goes beyond the education market. I expect this latest budget tablet to appeal not only to students/schools but also to gamers and home/office users.  By making this latest iPad compatible with the Apple Pencil stylus, small and medium business (who couldn’t afford $649++ 10.5-inch iPad Pros) might likely become new customers. The enterprise/business market for tablets is obviously much larger than the K-12/college education market.

The image below illustrates why corporate employees and business owners should consider buying a $329 iPad.  It’s a semi-iPad Pro!

(Source: Apple)

Apple Is Not Afraid of Taking Risks

Yes, there is some risk that a $329 iPad can cannibalize future sales of much more expensive iPad Pro models. However, companies who do not take risks are inept. The bright side of this new move is that Apple is betting it could increase its total addressable market by selling an affordable enterprise-level iPad. Apple now offers an enterprise-level tablet for less than $350.

Apple selling a budget tablet can help attract small/medium enterprise customers away from sub-$300 Windows 10 laptops, Chromebooks, and Android tablets. The A10 Fusion SoC-equipped $329 iPad 2018 can function like the premium iPad Pros (equipped with A10X SoC) in the office, on the road, and at home. The single-core processor compute performance of the A10X Fusion is just 14% faster than the A10 Fusion.

The 2018 iPad is compatible with the $99 ($89 for students/schools) Apple Pencil or other third-party brand of stylus. Furthermore, Apple has made new updates to its free iWork productivity suite to make it Pencil/stylus-compatible.  Apple might also extend the free 200GB iCloud storage to non-student users of the $329 iPad 2018. An improved iWork office suite coupled with free large cloud storage per user is an attractive proposition for small and large enterprise buyers.

The lower hardware margin on the 2018 iPad can be offset through sales of Apple Pencil and iTunes purchases. Some digital artists, employees, students, and teachers will eventually buy iOS apps/games, e-books, streaming TV/Music/movie subscriptions through their company or school-issued iPads.

Mobile Gamers Will Also Appreciate This Cheap iPad 

Many K-12/college students/teachers are gamers. They will certainly appreciate Apple’s use of the A10 Fusion SoC (System-on-Chip) on the $299 iPad 2018. The integrated 6-core PowerVR-based GPU (Graphics Processing Unit) n the A10 Fusion SoC is as good as Apple’s own integrated GPU for the A11 Bionic SoC.

Based on the Arena of Valor (Ultra Graphics Settings) test of Notebook Check, the A11 Bionic’s GPU is only 2% better than the PowerVR GPU of the A10. That’s a negligible difference. Due to its affordability, the iPad 2018 can become the best tablet for casual and hardcore mobile gamers.

(Source: Notebook Check)

The advent of console/PC-quality iOS games like Arena of Valor and Fortnite is boosting the mobile platform as the growth driver for video games. It makes perfect sense for Apple to sell a $299/$329 gaming tablet that can outperform Android tablets with Nvidia (NVDA) Tegra K1 GPUs. Keeping its number one status in global tablet shipments requires Apple to cater to mobile gamers.

Selling a budget iPad increases the number of iOS gamers. The more iOS gamers there are, the better it is for Apple’s 30% commission rate from iTunes App Store purchases.

Final Thoughts

Apple’s move to release a budget iPad that can be used for enterprise productivity and high-end mobile gaming is commendable. It is another good reason to stay long AAPL. The management of this company is ready to take risks which could lead to better long-term iPad sales.

I Know First has a very bullish one-year market trend forecast score (more than 200) for AAPL. I am therefore endorsing this stock as a buy.

The monthly technical indicators/moving averages of AAPL also supports my buy rating for AAPL.

Past I Know First Success With AAPL

Apple_forecast20180218

On February 18, 2018, I Know First published a premium article saying that it’s time to buy Apple’s stock as it would likely be growing in price in 2018. I Know First has been bullish on Apple’s stock on 1, 3 months and 1 year time horizon. As the time went by we expected that Apple’s stock would likely to significantly rise, especially in 3 month and 1 year perspective and hit the level of $170-$180 per share which has already happened. We suggested to buy it at that time and not to lose the increasing momentum. From the below graph one can see that on 1 month horizon the algorithm successfully predicted the movement of the AAPL stock price which is rise by 5.31%.

(Source: Yahoo Finance)

This bullish forecast for AAPL was sent to I Know First subscribers on On February 18, 2018.

To subscribe today click here.

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

autodesk stock forecast


autodesk stock forecast

 

 

 

 

Apple Stock News: Apple’s Valuation To New Highs With IPhone X

Apple Stock News

For the latest Apple Stock News, AAPL closed at $160.47 per share on October 17th, 2017. It generated a profit of 0.36% from its previous close on October 16th, 2017, when it closed at $159.88 per share.

As we are getting closer to November 3rd, iPhone X’s launching date, Apple’s manufacturing partners released their first shipments of the handsets. Customers seems to be very anxious to purchase the iPhone X and this, consequently, may drive Apple’s valuation to new heights.

Apple’s profits may boost due to the higher prices assigned to this new iPhone generation. Many analysts raised the Company’s ratings. Daniel Ives from GBH Insights expects that there will be sufficient uptake of the iPhone 8, iPhone 8 Plus and iPhone X for the next 12 to 18 months, which may in turn leave the stock price to range between $160 and $175. Ives believes that the iPhone X product cycle can be the strongest iPhone product cycle to date.

KeyBanc Capital Markets also raised its rating for Apple shares. According to Andy Hargreaves, there will be a “strong high-end demand” for the newest iPhone, which will favor investors sentiment over at least the next few quarters. Furthermore, the KeyBanc analyst predicts a gross profit margin of 39.5% and $11.68 of earnings per share for the fiscal 2018.

Hence, as Hargreaves said, Apple is a franchise with subscription-like qualities and not a regular hardware business, which support the Company’s position in a strong range.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: New VP and Managing Director of Greater China

Apple Stock News

For the latest Apple Stock News, AAPL closed at $151.02 on July 19, 2017. It had a gain of 0.98% from its previous close on July 18, 2017, at $150.08 per share.

apple stock news

Source: Apple Newsroom

Apple announced on July 18 that the company has appointed Isabel Ge Mahe, a China-born Wireless Technologies leader, as the vice president and managing director of Greater China. This move is in the hope of “deepening our team’s connections with customers, government and businesses in China to advance innovation and sustainability”, said Isabel.

The smartphone giant seems to be experiencing some trouble in China. Apple has been facing increasing competition from local players and more pressure from regulators. However, this newly created position shows the positive sign that Apple is on the right track toward winning back the market.

Isabel has led Apple’s wireless technology team for over nine years. According to Apple’s release, she has worked closely with R&D team and carrier partners in China to bring more customized features to the iPhone and iPad.

China still represents one of the most promising market to Apple. The fast-growing middle class stands as a large potential customer base. It is obvious to the naked eyes that Isabel is perfectly positioned for this new role. She would more than likely to be tasked to capture the second-largest economy.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: New Data Centre and Renewed Positioning

Apple Stock News

For the latest Apple Stock News, AAPL closed at $149.05 per share on, July 14th, 2017. It generated a return of 0.87% from its previous close on July 13th, 2017, when it closed at $147.76 per share.

On July 13th, 2017, Apple announced that it has plans to build its first data center in China. This will be in partnership with a Chinese data management company. Thus making Apple join the ranks of other tech giants who have made similar moves, including Amazon, Microsoft, and IBM.

From a product functionality standpoint, this data centre and any future data centres are predicted to rapidly improve the various iOS services that are present with the iPhone.

This new data centre is expected to allow Apple to operate at a much more competitive level with local Chinese smartphone producers. These companies have generally offered smartphone products noticeably cheaper than Apple’s iPhone. Unfortunately, this phenomenon has cost Apple dearly in China.

It is therefore a strong signal that Apple is taking the appropriate and necessary steps to close the gap that exists between it and local players. Together, these measures are believed to become a positive boost to the sales and profitability of the American tech giant.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Apple Set to Open New Data Center in Denmark

Apple Stock News

For the latest Apple Stock News, AAPL closed at $145.06 on, July 10th, 2017. It had a gain of 0.61% from its previous close on July 9th, 2017, at $144.18 per share.

Apple Stock News

Apple (AAPL) announced the establishment of one of the world’s largest data Centers in Aabenraa, Denmark. The new data center will run entirely on renewable energy and will feature surplus-heating recycling. This would be the company’s second “green” data center in Denmark. The reported investment for this new, state of the art building is of 6 billion Danish crowns ($921 million).

Apple has increased its eco-friendliness since the United States pulled out of the Paris Accords. They pledged to back the accords regardless of the government’s opinion and issued a $1 billion green bond.

Since the moment of the announcement until the markets closed, Apple’s stock steadily increased. They closed the trading session gaining 0.88 or 0.61%. Experts and investors appear to have faith in Apple’s stock, as there have been several articles expressing their confidence in the company. Citing both the investment for the Data Center and the coming release of the iPhone 8 as the main reason for optimism.  I Know First’s bullish forecast for Apple is in line with these authored predictions.

In addition, the general public has expressed their gratitude towards Apple and its values via Social Media. It is safe to say that the world’s most valuable brand just became even more valuable.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.