Apple Stock News: Apple Surges 13.5% Amid Easing Tensions

Summary

  • Apple market volatility will continue to be dictated by China trade woes and other political news
  • iPhone Sales down 25% in China
  • WWDC garners mixed headlines and negative press from $1000 monitor stand

Exposure to China

Given that China alone accounts for approximately 20% of Apple’s net sales and manufactures its products there, it has significant exposure to their economy and trade between China and the US which accounts for approximately 40% of their sales. In light of current looming trade disputes and a slowdown in the Chinese economy, Apple has suffered significant declines there. In the trailing 6 month period ending March 30, 2019, Apple suffered a 25% decline in sales in China year over year from $30,980,000,000 to $23,387,000,000. Although other regional sectors of the business also experienced some decline, China was the worst performer by far. In the same time period, European sales declines 4%, Japanese declined 2%, Asian Pacific declines 2%, and the Americas is the only area that showed growth at 4% . Whereas the general small declines in sales are due to a mature smartphone market with growing competition where Apple represents the priciest option, Apple’s slump in China can be attributes to macroeconomic factors. In light of these general declines, Apple is becoming more proactive and aggressive in marketing and selling its iPhones. A recent tactic has been to offer 0% financing .

Huawei Competition

In the first quarter of 2019, Huawei overtook Apple as the second largest smartphone maker behind Samsung. Huawei shipped 39.3 million phones in the first quarter of 2018 compared to 59.1 million shipments in quarter 1 of 2019. This growth has come almost exclusively from China while it remains barred by the Government from doing business in the US, Apple’s crown jewel within global markets. In the scenario that there is a breakdown in trade talks and severe escalation in the trade conflict between the US and China, Apple could be subject to a retaliatory move from the Chinese side. If iPhone sales were banned in China as Huawei is banned in the US, this would immediately wipe 20% off from Apples bottom line and presumably at least that much from its market capitalization.

Looming Antitrust Probes

On June 3, 2019, on the first day of Apple’s much anticipated WWDC (Worldwide Developers Conference) news broke that Apple was the subject of an antitrust probe along with other big names in tech such as Google, Facebook, and Amazon which triggered an industry wide selloff as the NASDAQ 100 index fell by almost 2% that day.

Apple Worldwide Developers Conference Summary and Aftermath

Apple’s Worldwide Developers Conference took place from June 3 through 7 and although Apple headlines were undermined by news of the antitrust probe on the first day of the conference, the conference yielded much positive news and interest. Updates include an overhaul of TVos and Apple TV as well as details regarding iOS 13, MacOSCatalina and the iPadOS which is the operating system for the iPad. Regarding hardware updates and improvements, they announced the Mac Pro and Pro Display XDR as well as specs for the new Mac Pro.

This did however garner some controversy and negative press in what can be described as a massive PR blunder. They announced their starting price for their Mac Pro Monitor at $4999 with an optional stand for $1000. Critics described this as everything that’s wrong with Apple and some consumers are frustrated with paying 1000 for what is essentially a piece of metal. Other companies like Microsoft have it included with their monitor. The consensus is that this should have been presented as a $6000 computer which is a fair price considering the alternatives which generally range from $10,000 to $43,000.

Stock Performance Summary

Since bottoming at $170.27 per share on June 3rd following antitrust headlines, the stock has rallied to over $194, almost exactly halfway between the 52 week range of $233.47 and $142.

Apple Stock News – Antitrust Probe Laws Ruins Mood for WWDC

Source: Apple Inc

The highly anticipated Apple Worldwide Developers Conference (WWDC) 2019 is happening as we speak, in San Jose, California. From 3 to 7 June 2019, apple fans will been given the latest tech updates and investors will be watching stock prices closely.

However, on Monday, 3 June, news broke that Apple was facing possible jurisdiction for an antitrust probe, causing major unrest for investors as stock prices fell that very day. Meanwhile, trade war tensions might be dissipating.

Antitrust Probe – A Toothache for Apple

Source: Bloomberg

On Monday, 3 June 2019, Apple stocks fell despite trying to put their best foot forward in WWDC. The US Department of Justice has secured jurisdiction to investigate Apple on antitrust probe concerns. Sources on Reuters, unfortunately did not specify what issues led to them wanting to pursue an antitrust probe.

Other tech giants such as Amazon, Alphabet and Facebook are also undergoing concurrent antitrust probes.

Apple’s stock fell by as much as 2.4% at $170.87 following a release on the report about the antitrust probe, despite being positive earlier in the day. By the end of Monday, Apple stock had rebounded slightly and closed at $173.30, with a drop of 1%.

WWDC – What’s the Latest News Mac?

Source: The Verge

On the other hand, in the WWDC 2019, Apple has announced some new and exciting updates, including a Mac Pro and Pro Display XDR, iOS 13 with a dark mode, MacOSCatalina and an operating system for the iPad called iPadOS.

iTunes will be cancelled and instead broken up into three apps; Apple Music, Apple Podcasts, and Apple TV. This is to cater to the new ways consumers buy and stream media.

They also announced the latest Mac Pro with the most up to date and powerful specs. However, it has gained a lot of traction for the wrong reasons as the design of the mac pro has ended up looking a lot like a giant cheese grater.

iPhone introduced a dark-mode for system menus and native apps. Whilst the launch speed for apps should be much quicker. With iPad’s new software updates, switching between apps will now be more seamless.  

Trade War Tensions Might be Dissipating

“The differences and frictions between the two sides in the economic and trade field will ultimately need to be resolved through dialogue and consultation.”

China’s Ministry of Commerce

Following the release of the statement in early June, investors can feel slightly hopeful. The Trade War tensions have been going on for months, putting investors and consumers on edge.

Any tariffs placed on Apple products will have an undesirable impact. According to analysts, every 5% drop in China’s sales will result in an earnings per share drop of about 15 cents. This is due to the fact that China is Apple’s third largest market and Apple relies on chinese workers for assembly of their products.

Source: Bloomberg

On 10 May 2019, the Trump Administration raised tariffs from 10% to 25% on $200 billion goods after failed negotiations. Three days later, China threatened to raise tariffs on $60 billion worth of US goods. With the escalating trade war tensions in the month of May, Apple Stocks have certainly taken a hit.

Goldman Sachs estimated that Apple’s earnings would fall by 29% if China were to retaliate against the US with a ban on sales of the iPhone maker’s products.

As Always Apple Tops Expectations and Stays Different – WWDC 2018

“You want to be the pebble in the pond that creates the ripple for change”

– Timothy d. Cook, Chief Executive Officer of Apple Inc.

[Image Source: T3.com]

As a follow up to last week’s article, Apple’s Worldwide Developers Conference (WWDC) kicked off on June 4, 2018 and many of the highlights that were to expect took place in the event.

The yearly event was entirely software-based this year, despite early expectations to see more hardware-related announcements. The event included all of the latest updates to Apple’s platforms- iOS, macOS, watchOS, and tvOS, along with some improvements to Siri and bigger plans focused on strengthening privacy and security and reducing technology addiction. These enhancements to Apple’s platforms were designed to optimize the overall Apple user experience.

So… What’s NEW?

[Image Source: cultofmac.com]

Craig Federighi, Apple’s senior vice president of Software Engineering, explained over and over how iOS 12 is all about making things faster and more reliable for new and older devices like the iPhone 6 Plus, which would see apps open up to 40% faster and the camera would launch up to 70% quicker. This is the ‘No iPhone Left Behind’ update with every device capable of running iOS 11 being ready to run iOS 12 when it arrives. In addition, the iOS 12 will also include a new feature called Group FaceTime. The video chat service that right now only connects pairs of people will enable up to 32 to chat online together. The change is significant and useful for friends jumping online together, family member chatting and business meetings with distant coworkers.

This inclusivity did not include Apple Watch users who have the first-generation watches launched in April, 2015 and were still available for porches 20 months ago. The WatchOS 5 capabilities go from competitive Activity Rings to enhanced web page interaction.It is part of Apple’s goal towards a solid, reliable experience with minimal bugs and no battery-throttling or hidden activities scandals bubbling up. Apple was reasonably upfront that it couldn’t deliver the experience it wanted with the first Watch’s hardware.

With Emphasis on privacy was paramount, Apple discussed how it was building on the features from last year which prevented cross-site tracking, to make adverts follow you around less.

The new MacOS software goes further. It will be possible not to be tracked on sites where there are Like or Share buttons from social networks. Intelligent Tracking Prevention, helps block social media ‘Like’ or ‘Share’ buttons and comment widgets from tracking users without permission.

The new tvOS 12 aerial screensaver features on Apple TV 4K, includes aerials shot from space by NASA astronauts aboard the International Space Station.

Siri update includes making suggestions based on the things the user does regularly, like ordering a soy latte from Starbucks every morning or ordering sushi on Sundays.

 

[Image Source: zdnet.com]

Apple also announced a new Shortcuts app as part of iOS 12 that lets the users tie together multiple steps into a single Siri request. Another new feature called Shortcuts works with third-party apps. For example, the phrase “Siri, I lost my keys” can pull up the Tile app, showing you where you left them. Shortcuts also work on the HomePod and Apple Watch if that’s where you talk to Siri.

Apple’s latest software-based updates satisfy expectations and follow with an increase of 3.2% in AAPL stock in past 5 days. Stock price jumped from $189.98 to $193.51 per share since WWDC 2018 event.

[Image Source: Yahoo Finance]

Following the above, APPL stock grows every year with WWDC announcements. With Apple’s new and improved software, AAPL stock is expected to continue growing in the long-term estimation, as long as it remains updated and innovative.

What to Expect – Apple WWDC 2018

[Image Source: T3.com]

Apple’s Worldwide Developers Conference kicks off on June 4, 2018 at the McEnery Convention Center in San Jose, Calif. The primary focus of the event is contenting pros, and decision makers for technical sessions and brainstorming over the direction of Apple’s software universe in the coming year.

In contrast to last year, Apple is expected to introduce new software, with some hardware announced. In addition, Apple is also expected to update operating systems for Mac computers, the Apple Watch and Apple TV.

What to Expect?

As of last year, Apple used the event as a launch pad not just for OS updates- macOS High Sierra, Apple iOS 11, but also for major hardware moves – MacBook Air, new iMacs.

This year Apple is expected to update its mobile iOS and computing-centric macOS operating systems. The software update for existing iPhones and iPads is expected to be called iOS12 while the next version of macOS is still under wraps. Naturally, you can expect stability and performance improvements with the new operating systems.

Apple’s Siri is expected to get smarter as Apple’s offering has fallen woefully behind competitors like Amazon’s Alexa and Google’s Assistant in recent years.

WWDC is a developer’s event, but that hasn’t stopped Apple from introducing new hardware products in the past. For this year’s event the chances that Apple will introduce new products are slim, but if they do, users should expect updated MacBook, improved Airpods and maybe a new Apple Watch.

OLED is a new display technology, used to create thin, power efficient and bright display. In the 2017 iPhone X, Apple started adopting OLEDs and it is expected to introduce new OLED modules in its 2018 WWDC. As OLEDs provide a better image quality, and are also thinner, lighter, flexible and more efficient than LCDs, it is only a matter of time until Apple will switch to OLEDs with all its iPhones and mobile device.

Investors’ expectations for new and improved software and hardware follow with an increase of 1.59% in AAPL stock in 3 days. Stock price jumped from $187.11 to $190.15 per share.

[Image Source: Yahoo Finance]

Following the above, APPL stock grows every year with WWDC announcements. With Apple’s new and improved software hardware expected this year AAPL stock is expected to continue growing in the long-term estimation, as long as it remains updated and innovative.

Apple Stock News: WWDC Conference Delivers Yet Again

Apple Stock News

For the latest Apple Stock News, AAPL closed at $155.37 on Wednesday, June 7th, 2017. It had a gain of 0.60% from its previous close of $154.45 per share.

 

 

Apple’s annual Worldwide Developers Conference commenced on June 5th. As expected, there were major announcements. Let’s take a look at some of the more notable ones.

As expected, Apple introduced HomePod, its own speaker with built in Siri to rival the likes of Amazon Echo (AMZN) Google Home (GOOGL) and Sonos. The speaker uses special awareness to fill the room with the appropriate level of sound based on the space its in. It also has a feature called “Musicologist” which works seamlessly with Apple Music. HomePod will be prices at $349.

Apple’s iMac desktops have also received a boost with improved Retina displays, graphics boosts and new Kaby Lakes processors. They will also have the ability to support virtual reality (VR) content. There is also a new iMac Pro with a 5k display and 8-core Xeon processor which is upgradable to 18-c0re. The iMac’s will start at $1,099 for the 21.5 inch model. MacBooks are also set for an upgrade, the MacBook Pro will start $1299. They will be fitted with the new Kaby Lake Processors.

Also released was the new version of iOS software. Changes include an update to Siri with improved speech and the ability to translate sentences into different languages. iMessage is now live through iCloud with a cool feature being added, giving consumers the ability to pay and receive payments from contacts through iMessage. Photo capture has also received a boost, allowing for better low-light performance as well as the ability to edit live photos. A new safety feature introduced will automatically turn on ‘Do Not Disturb’ to prevent distractions. The App store has also received an upgrade, with a better discovery section and re-design.

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: The Apple Watch 2 Is Coming

Apple Stock News

Many are anticipating the release of the Apple Watch 2 in the upcoming WWDC 2016 event. The first Apple Watch was released roughly a year ago and now seems like a timely date to release the updated version.

The new Apple watch is though to have a similar design to Apples first watch, however it will be approximately between 20 and 40 percent thinner. Additionally, the watch will include a camera in which the user can FaceTime other Apple devices. The camera will obviously also be able to record videos and take pictures.

apple stock news

Moreover, the watch will have a faster Wi-Fi feature with an improved processing chip. This will in turn let the device process data faster.

Many complained about the first generation Apple Watch which had poor battery life. Apple are keen to tackle this problem and will certainly make a significant attempt to rectify this. Central to this process could be including a larger battery in the next generation smartwatch, and reports have suggested that this will indeed be made possible by using a slimmer display in the Apple Watch 2.

The Apple Watch 2 is will also include cellular connectivity, which would vastly improve the range of functions the watch is capable of when not directly pared to an iPhone unit. The New York Times has reported that Apple Watch 2 buyers will be able to choose from either 3G or 4G connectivity, with consumers apparently paying for a data plan in order to use this particular function.

Apple will also likely include an improved health tracking feature. The option is thought to be a aimed at athletics and many are excited about this specific feature.

Apple Stock News: Music Streaming Service, Not TV, Released Next Week

Apple Stock News

Apple announced that its World Wide Developers Conference (WWDC) keynote speech will be on Monday, June 8th, kicking off the event. The biggest event of the year for the company, there is sure to be plenty of excitement as new products are announced, updates are released, as well as other surprises. At this point, it has been reported that Apple will announce its new music streaming service, although its subscription TV streaming service won’t be announced.

apple stock news

The company will be releasing its new music streaming service, as it attempts to enter the business segment late. Apple released iTunes in 2003 and changed how people pay for and listen to music. It hopes it can do the same thing now, as it attempts to bring music streaming, which is on the upswing, into the mainstream. The service will cost $10 a month, competing with other services like Spotify and Tidal, and Apple will attempt to get iTunes customers to use the service. Apple already has their credit card info, so a switch could be seamless.

While the company will reveal its new music streaming service, its TV streaming package won’t be released as the company has not been able to come finalize licensing deals. Apple wanted to release the service this fall to coincide with the start of the new broadcast television season, but industry executives now believe the service won’t be released until later this year, or even in 2016, as it looks to find agreements with local broadcasters. The updated Apple TV will be released without the service, though, along with new operating systems iOS 9 and OS X 10.11.

Apple Stock News: What To Expect From The WWDC

Apple Stock News

Apple will host its World Wide Developers Conference, or WWDC, on June 8th. The conference is a big annual get-together for the company, where it usually unveils a variety of new products, including new versions of the iOS and OS X operating systems in addition to new Macs and iPads. The impact of the event was huge last year, as it got the company back on track after a slow start, and market analysts will be keeping a close eye on what could be revealed during the conference over the next two months.

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At last year’s event, Apple unveiled the iOS 8 for the iPhone and iPad, OS X Yosemite for the Mac, its HomeKit set of tools for developers to make connected home devices work with Apple products and more. It is almost a certainty that the company will reveal the iOS 9, the new operating system for the iPhone and iPad, which will focus on improved stability and optimisation improvements over new design and features. The new Mac OS X, titled Mojave, should also be previewed, while attendees could be provided with an update on the new Macs revealed on March 9th along with the Apple Watch.

The most exciting possible new product to be revealed at the conference is the long-rumored revamped Apple TV. The set top box has not been updated in a long time, and it is believed that Apple hopes to revamp the entire home with this new product. A hint at this can be seen at the invite to the conference, seen above, where the figure in the middle is in the shape of an Apple TV with the words ‘The Epicenter Of Change.’ The Apple TV, which will allow people to pick which channels to include in their television package for streaming, will also act as the central hub of Apple’s HomeKit, with Siri being the perfect controller for the rest of the home.