Apple Snags Media Giant Oprah Winfrey For Their Streaming Service

“The biggest adventure you can ever take is to live the life of your dreams.”- Oprah Winfrey

(Source: Flickr)

On June 15th, Apple formed a multi-year production partnership with Oprah Winfrey, the media tycoon. The two are joining forces to collaborate on content for Apple’s upcoming subscription based streaming service. It is currently unknown what Oprah will be producing, but Apple stated that, “Together, Winfrey and Apple will create original programs that embrace her incomparable ability to connect with audiences around the world.”

This partnership is a huge win for Apple because Oprah brings to the table her dedicated fan base. This phenomenon goes by the name of the “Oprah Effect”. The Oprah Effect is when any product associated or endorsed by Oprah Winfrey see a huge boost in sales. For instance, after Oprah Winfrey bought 10% of Weight Watcher stock, more than 600,000 members joined the program. Apple looks to carry over this trend to their new service with hopes that Oprah’s huge audience will start watching the new streaming service.

Oprah’s partnership is a drop in the bucket compared to Apple’s approximately one billion dollar investment into its streaming service. With decreasing iPhone sales, Apple hopes that this streaming service will be a home run for them. However, it is going to be competing against companies putting in more than triple the amount of investment into their streaming services, such as Netflix who just acquired former President Obama.

Following the announcement, Apple’s stock gained.

(Source: YCharts)

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: Is Apple A Buyer For Netflix?

Apple Stock News

For the latest Apple Stock News, AAPL closed at $113.05 on Wednesday, October 5th, with a 0.04% gain, or $0.05 from its previous close of $113.00 per share.

As the speculation for a takeover of Netflix is pushing its stocks higher. Walt Disney Company is rumored to be the candidate, however Apple has also been mentioned as a potential suitor.  Apple has one of the largest cash reserve of over $200 billion compared to businesses, leading many to speculate what does the company plans to handle its cash on hands. Is a merger with Netflix a possibility? Apple can afford Netflix’s $50 billion price tag. If Apple is looking to diversify from selling hardware to service, owning Netflix could increase Apple’s revenue source by approx. $7 billion. Apple could become the dominant company in download internet traffic.  Netflix alone claims to have a 37% share of the traffic in North America alone.

Apple Stock News

 

Despite the possibilities in benefits, it does not seem likely that a hardware company would be interested in merging with an internet television network.  If such a merger were to take place, this would be the largest acquisition in the company’s history.  Fortune questions Netflix’s price tag and a suitor’s timeline to recoup its return in investment.

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