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


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Apple Stock News: Apple Releases Updates Against Microchip Security Flaw Spectre

Apple Stock News

Apple releases security updates for iOS, MacOS, and Safari to protect users from a computer chip vulnerability. Called Spectre, the microchip security flaw, which left computing devices vulnerable to hackers, affected chips from Intel, AMD and Arm. Spectre affected nearly all computer chips made in the last decade.

Less than a week after news stated that Intel, Arm and AMD chips contained the flaw, Apple released the update. The hacking attack could reveal secret information on these devices. For the attack to work, hackers need to install malicious software onto the device in order to make sensitive information, such as passwords and encryption keys, easier to steal.

According to Apple, almost all of its devices are affected by this flaw. Despite the risk that it could expose billions of people’s personal data to cyber criminals, the tech giant affirmed that there were no known instances of hackers taking advantage of the flaw.

The operating system software update is available for Macs, iPhones, iPads and Apple TV. Spectre did not affect Apple Watch.

For the latest Apple Stock News, AAPL closed at $174.35 per share on January 8th, 2018. It generated losses of 0.37% from its previous close on January 5th, 2018, when it closed at $175 per share.

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

Apple Stock News: Apple’s Fall 2018 iPhone Lineup Most Comprehensive to Date

Apple Stock News

According to sources such as respected technology analyst TrendForce, as well as respected Apple analyst Ming-Chi Ku of KGI Securities, there will be three new iPhones released in 2018.  The most noticeable change will be the size of the devices.  The next generation of the iPhone X will come in two model ranges, standard and plus.  The standard handset will remain at 5.8-inches.  The plus version will have a display of 6.2-6.5-inches.  This giant of a smartphone will test the limits of premium smartphone pricing with a likely sales price of $1,099 to $1,149.  Both next generation iPhone X’s will use the second generation of Face ID technology which is expected to result in an increased screen-to-body ratio and possibly an increased memory configuration.

The third new iPhone should take the place of the iPhone 8 and 8+.  It will have a LCD display and is rumored to be an upgrade to the iPhone SE with the display size growing from 4-inches to 6.1-inches.  It is also rumored that the 2018 iPhones will rely on both Qualcomm and Intel 4G modems and they will all support Gigabit LTE transmission speeds.  Only the 2017 iPhones that had Qualcomm modems could support these speeds before.  This expanded iPhone lineup should be the most comprehensive to date due to the various options in terms of pricing and form.  Apple also seems to have learned from its iPhone X production mistakes because according to Piper Jaffray analyst Michael Olson, 3D sensing suppliers “are being told to generate volume for the Fall 2018 launch that is three times what was made for the iPhone X this past year.”

In Other News

It’s believed that the iPad Pro lineup will get some of the new technologies now in the iPhone X.  The new iPad Pro will have no home button, will feature a slimmer bezel, and it will support Face ID which would yield a larger display size.  The tablets should still have LCD displays.  Per Digitimes, Apple will also launch a new 9.7-inch iPad at a price of $259.  This price is $70 less than the price of the popular iPad launched in March 2017.

According to Citi, there’s a 40% chance Apple will buy Netflix.  It will be easier due to Apple having access to its repatriated cash soon.  Apple has never done large acquisitions before, but Netflix is the clear leader in the streaming space and Apple is keen on succeeding in this market.


On September 8th, 2017, I Know First sent to subscribers a bullish forecast for AAPL. Since then, Apple’s stock has increased 8% in accordance with the forecast.

Current I Know First subscribers received this AAPL forecast on September 8th, 2017.

For the latest Apple Stock News, AAPL closed at $172.26 per share on January 2nd, 2018. It increased 1.79% from its previous close on December 29th, 2017, when it closed at $169.23 per share.

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

Apple Stock News: The Dispute Between Apple and Qualcomm Escalates; Apple Considers Dropping Qualcomm

Apple Stock News

After the intense start of the week that Apple had with iPhone X pre order numbers surpassing the expected, the market is now concerned that Apple´s dispute with Qualcomm is escalating.
The disagreement between the two firms began in January when Apple filed a lawsuit regarding the payments that should be made to Qualcomm, that responded with another lawsuit that sought to block the manufacture and sale of the iPhone X in China in October.
The firms are involved in a dispute regarding the patent and the valuation of the chips that Qualcomm develops and manufactures and Apple uses.
Apple is now reportedly designing iPads and iPhones that uses different chips from companies like Intel and MediaTek, a move that will possibly lead to them ultimately dropping Qualcomm as a supplier.
This move is risky for both companies, since Qualcomm might lose one of its biggest clients and Apple is facing a significant change of its hardware with unknown consequences for its production.

For the latest Apple Stock News, AAPL closed at $166.72 per share on October 30th, 2017. It generated a Gain of 2.25% from its previous close on October 27th, 2017, when it closed at $163.05 per share.

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 Pay Rise with Visa & MasterCard Terminal Requirements 

Apple Stock News:

For the latest Apple Stock News, AAPL closed at $159.78 per share on August 22nd, 2017. It generated a return of 0.20% from its previous close on August 23rd, 2017, when it closed at $159.98 per share.

Over the next five years, the share of payments made by Apple Pay will increase significantly. The world’s biggest card processing companies are Visa and MasterCard. They will require using contactless technology in payment terminals almost everywhere by 2020, according to Juniper Research report.

The lack of compatible terminals caused the slow spread of Apple Pay in USA technology. Also the reluctance of some retailers to establish terminals on time.

The growth of contactless payments can also be stimulated by shoppers. Bank cards with a chip have spread widely and replace magnetic strips. Customers want to reduce payment processing time on payment terminals.

Some benefits of Apple Pay for customers:

  • The simple system that works with customers everyday devices.
  • It is safe as only because of Touch ID or a passcode on iPhone and iPad. The card information isn’t shared and securely replaced with substitute digital account identifier.
  • Customer can easily manage previous transactions and ten last available on the device.

In retail, according to the forecast by 2022, the number of contactless payments will amount to 34%, compared to 2% this year. On a global scale, growth can rise from 15% to 53%. Such payments are very popular in Japan, Great Britain and Poland.

Some benefits for small business:

  • Increased security and privacy for customers.
  • Additional opportunity to compete, when mobile payments are mainstream.
  • Apple Pay provides a simpler payments environment for customers.

Apple Pay will appear in 4 more countries this fall and will be able to strengthen its positions when the new iOs 11 system implements a new technology of individual payments. Thus, Apple will potentially get into the revenue of such companies as Paypal and Square.

 

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 Acquires Workflow

Apple Stock News

pexels-photo-25861For the latest Apple Stock News, AAPL closed at $140.43 on Friday, March 24, 2017. It had a loss of 0.20% from its previous close of $140.64 per share.

Apple made headlines with the acquisition of Workflow. Although terms are not yet known, Workflow is an app that automates frequently performed actions on its devices. It was only a matter of time, with Workflow receiving an Apple Design award in 2015 for its “outstanding” accessibility features. Additionally, it is expected the app will be used to help the functionality of Apple’s voice over assistant, Siri.

In other Apple related news, the new iPad has recently been made available for pre-order. Interesting to note is the price point, $329, making it the cheapest retina display device released by Apple to date. Some are surprised at Apple’s seemingly low price point and decrease in gross profit margins. No need to be alarmed though, as the iPad is seen as a recurring revenue stream. Due to the nature of the device, users must download and purchase applications from the App Store. With Apple’s latest push to increase their service revenue, it comes as no surprise.

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: AAPL Working Together with President Trump

Apple Stock News

For the latest Apple Stock News, AAPL closed at $120.08 on Monday, January 23, 2017 with a 0.07% gain, or $0.08 from its previous close of $120.00 per share.

Apple Stock News

(Source: https://goo.gl/F16dQF)

Apple is looking into an investment in the United States after President Trump’s message, “Buy American, Sell American,” is continuously emphasized. Apple Inc. CEO, Tim Cook, continued to show interest after meeting with the President, in which they discussed jobs and incentives. Included in their offer is lower corporate taxes and a discount for repatriation from overseas.

If Apple were to follow through on the plans, they would invest roughly $7 billion with their supplier Foxconn Technology Group to build a liquid crystal display (LCD) manufacturing plant in the United States. The Taiwanese manufacturer, Foxconn, is the biggest contract maker of electronics whose most popular customer is Apple, contributing to 50% of their sales. According to Nikkei Asian Review, Foxconn CEO, Terry Gou, has considered moving production to the U.S. due to improvements in information technology and productivity, and lower energy costs in the states. The panel display facility is expected to create up to 50,000 jobs for Americans which is likely to please President Trump. And to Apple’s benefit, the plant would allow them to update their apple products, including their Macs, iPads, and iMac desktops. The plant could also be forward thinking from Apple to build the next generation of smartphone screens. The United States is the second largest T.V. market, yet has no display factories, posing a huge opportunity for the technology duo.

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: $1 Trillion Within Reach?

Apple Stock News

For the latest Apple Stock News, AAPL closed at $119.25 on Thursday, January 12, 2017 with a 0.42% loss, or $0.50 from its previous close of $119.75 per share.  Apple stock declined along with the major indexes, after investors seemed uninspired after President elect Donald Trump’s speech regarding economic growth.

Apple Stock News

After celebrating Apple iPhone’s 10th anniversary, Apple may be within reach of another milestone. Given Apple’s current growth rate and setting a new record in sales for its App stores, Apple may earn a cumulative revenue of $1 trillion dollars from iOS products.  Since Apple released the first iPhone in 2007, Apple also released other iOS products.  Among the most notable products are: iPad, iMac, iWatch, iPod, and Apple Watch.  Along with hardware, the software services include the App stores.

Perhaps this may not be a surprise to investors.  The iPhone is considered among the most recognized products in the world.  Not only did the phone change our way of life, but opened new avenues in software development and sales.  According to Asymco analyst Horace Dediu, he predicted Apple’s cumulative revenue could reach up to $980 billion by mid-2017.  Therefore, if Apple can meet or exceed its upcoming 4th quarter earnings on January 24, 2017, this could convine investors its progress to achieve this milestone.

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: Bigger is Better

Apple Stock News

For the latest Apple Stock News, AAPL closed at $108.64 on Friday, November 13th, with a 0.59% gain, or $0.64 from its previous close of $107.79 per share.  The stock rose as reports indicate Macbook Pro sales may be better than expected.  The Macbook Pro in its first five days outsold the 12 inch Macbook in the same time frame after its release on April 2015.  Apple earned revenue seven times the amount as the 12 inch Macbook.

Apple Stock News

Much like the Macbook Pro, it appears the iPad will be redesigned.  Apple could be releasing its biggest iPad ever.  Sales for the iPad peaked in 2014.  However, Apple has seen its sales for the iPad decrease since then.  As the iPhone became more advanced and its screen larger, customers were finding the iPad to be less relevant.  The iPhone is consistently outselling the iPad.  One of the reasons may be that people typically replace their iPhones at a faster pace than their iPads.  The iPhone has been Apple’s top selling item and among the highest profit-margin products.

In an attempt to revitalize the iPad, Apple is releasing three new iPad Pro models. The iPad Pro will feature a larger screen, up to 12.7″ display.  Besides a larger screen, the new models may feature a dubbed ultrasonic imaging.  This feature could be used to recognize a more accurate print through the glass display and replace the current standalone fingerprint scanner.

 

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: MacBook Pro upgrades, iPhone 7 news & iPad fame in enterprise

Apple Stock News

For the latest Apple Stock News, AAPL closed at $108.37 on Tuesday August 9th with an increase of 0.89% or $0.83 from Apple’s previous closing.

Here are the latest news for Apple Stocks:

Two Major Upgrades for the MacBook Pro  

macbook-proApple will soon offer all-new MacBook Pros that will come both with a Touch ID sensor, as well as an organic light-emitted diode (OLED). The OLED touch bar would provide users quick access to a wide variety of functions and notifications, depending on user preference. Adding Touch ID wouldn’t be a major step forward for the MacBook Pro. Indeed, several Windows PC makers have long offered biometric security in their devices and this is a technology that is currently used in its iPhone and iPads. However, Touch ID could be used for far more than unlocking a MacBook Pro. The feature could also be used to make purchases in the Mac App Store or verify a desktop-based purchase from online stores.

Apple iPhone 7 new features 

iPhone-7-ConceptApple iPhone 7’s launch is just a couple of weeks away and most of the features of the upcoming devices were revealed. Indeed, the iPhone 7 series will have a dual-rear camera and a home button with taptic feedback. The 2016 series will mark the end of the headphone jack. New iPhones will also be water-resistant and will start at 32GB base model instead of the 16GB. Apple is expected to unveil the new iPhone in the first week of September, and it could be in stores by September 16.

 

 

Apple’s iPad is more popular with businesses than consumers                                                                           indexWhile Apple’s iPad sales continue to decline overall, the tablet is surging in demand. Indeed, nearly half of all iPad sales are to corporations and governments, with high-end iPad sales to business customers particularly strong. Apple’s fresh success in the enterprise is unusual for the company. Microsoft has typically dominated desktop computing inside businesses, and Steve Jobs always focused Apple on building products that consumers would love. But now, Apple has an advantage over both Android and Windows for tablets in the enterprise. Google’s Android security is often seen as inferior to iOS, and Windows has lacked touch-based apps to take advantage of a true mobile tablet mode.

 

 

 

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