Apples slow game on show
The wait for game-changing innovations goes on
Share this:
Apple’s slow game on show
The wait for game-changing innovations goes on
Apple keeps showing that its era of game-changing innovations is over, at least for now. The stock fell modestly again on Tuesday, after dipping the day before. The price move belies the apparent importance of a raft of product announcements on Monday, including the iPhone maker’s incursion into Netflix’s streaming video sphere.
A closer look at the launches, which extend the move away from topping-out handset revenues, shows why the market’s underwhelmed.
- The News Plus subscription portal has notable holes, including the New York Times and the Washington Post
- Apple TV Plus is anything but simple and compelling, looking on the surface like a paid version of the existing multi-channel platform. As exclusive content therein gains traction, that may change, but only over time
- The credit card partnership with Goldman Sachs looks most promising. The Federal Reserve this month reported U.S. card debt closed 2018 at a record $870bn. Still, there is little prospect the JV will take much share from dominant U.S. players like JPMorgan, Capital One, BofA and others, even over a decade
For Apple, the true value of these launches is the foothold they create for the longer view. Overall, the roll-outs look very much in the mould of iterative strategies favoured by CEO Tim Cook. They’re the antithesis of the more disruptive innovations that were the signature of Cook’s predecessor, Steve Jobs.
Yet the stock is up 22% so far this year regardless. With recent warnings out of the way and iPhone forecasts ‘right-sized’, Apple’s increasingly diverse revenues and modest forward valuation continue to attract. It is the broader outlook, fogged by the lingering U.S.-China chill and global growth concerns that remain inescapable for huge corporations like Apple.
Right now, although Apple shares are backed by the solid gradient of an ascending 200-week moving average, the approach to a rising trend line that was breached with some drama late last year poses a significant challenge. More convincing news looks required before Apple buyers are prepared to cross it.
Price chart: Apple Inc. DFT – weekly [26th March 2019, 19.30 GMT]
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
SK Hynix IPO: Everything You Need to Know About SK Hynix
Learn everything you need to know about the SK Hynix IPO, including its Nasdaq listing, valuation, financials, ownership, competitors and investment risks.
Apple (AAPL) Q4 Earnings Preview: Services in Focus as iPhone Growth Slows
Apple reports Q4 earnings on January 29, with investors focused on Services momentum, margin resilience and guidance tone as iPhone growth slows.
Nasdaq 100 Outlook: Broadcom Extends Slide, Palantir Reversal Signal
Nasdaq 100 slides as AI funding fears bite, with Broadcom extending losses and Palantir flashing a potential reversal at resistance.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.