Apple (NASDAQ:AAPL) has a product launch every year. Usually, the launches get all kinds of media coverage, interest among investors and more. However, this time around things were a bit different. Of course, the event was covered my the media, but the excitement was tempered.
AAPL Launch
Apple was supposed to have a big day on Wednesday. However, it wasn’t quite as big as expected. Nonetheless, Apple held its annual event announcing its newest products.
- iPhone 7 Plus – The new iPhone, known as the iPhone 7 Plus was the product that took center stage at this week’s event. The new phone, I must admit is a pretty big improvement over the last. We’re seeing quite a bit with regard to improved camera functionality and a better overall phone. In fact, the new phone is water and dust resistant. However, to make the phone water resistant, AAPL had to do away with the headphone jack, which has caused quite a stir.
- Apple Watch – The Apple Watch got a bit of a face lift. In the newest release, the company added more functionality for those involved in sports. Specifically, the smart watch is now more friendly for runners, bikers and swimmers. However, many wanted to hear some kind of announcement with regard to battery life. Unfortunately, this was not part of the AAPL update.
- Nintendo Games? – A surprise announcement was that Nintendo (T:7974) and Apple are now working together in order to bring Nintendo games to apps. This could be an exciting revenue stream moving forward.
How The Market Reacted To The News
In the past, new-product releases were great for the stock. Investors would be excited about what was coming and the stock would see gains. However, since Tim Cook took over, things have been very different. Unfortunately, thanks to leaks, everyone knew most of what was coming and Apple hasn’t been able to excite investors. We saw that again on Wednesday as the stock fell. Two hours befors the U.S. close, the stock was trading at $107.45 after a loss of $0.25 per share or 0.23%.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively bearish opinion of what we can expect to see from AAPL. At the end of the day, with nothing new and exciting, the movement in the stock is largely going to depend on the company’s iPhone sales. However, with no headphone jack, many are going to be reluctant to upgrade to the new iPhone 7 Plus. While waterproof is great, I don’t think it’s going to be enough to really get sales back up to where they should be. As a result, I’m expecting that sales will flop and we will see declines in the stock ahead.
What Do You Think?
Where do you think AAPL is headed moving forward?