BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.
Apple Inc. is a major US technology company. Together with Facebook, Google and Amazon, it makes up Tech’s Big Four, and it is obviously a DJIA constituent.
Based in Cupertino, California, Apple produces a wide range of consumer electronics, including iPhones, iPads, iPods, Mac computers, smartwatches, digital media players and home speaker systems, as well as software products , such as the iOS operating system etc.
Everyone knows about Apple and its superstars founders, and everyone in the trading world is familiar with Apple stock.
While the profitability of this investment vehicle is unquestionable in the long run, there are more ways to make money through it than just buying and holding on.
The question traders needs to answer in this regard is:
What factors move the price of Apple stock?
The long-term price driver of Apple stock is obvious. The ability of the company to deliver innovative products which are easy to use and which fill real needs on the part of consumers is the key to the success of the outfit. Without innovation, the company is little more than just another tech “follower”.
Apple’s deceased CEO Steve Jobs was the main driver of this innovation. In 2011, Tim Cook took over, and the investor community found itself questioning the ability of the company to continue Jobs’ vision.
This is the single most important metric to track for long-term Apple investors. Short-term traders have a number of other factors to keep their eyes on.
As the primary source of Apple revenues, iPhone sales are the main short-term driver of company stock price. In the latter part of 2018, iPhone sales accounted for more than 50% of Apple’s revenues.
The factors that can impact these sales are new product launches (which may be wildly successful, but which can also fall flat) and competition, coming mainly from the Android market segment.
iPad and Mac sales still make up a significant portion of company revenues (~20%), but this vertical of Apple’s product line has been losing ground to competitors. That said, it is still a factor to watch, as it can spark stock price drops, provided the current trends continue.
New versions of some devices belonging in this category are being rolled out. It is definitely worth seeing whether they live up to expectations, or simply flop. They’re all set to come out at a higher price point than current versions. The question is whether they justify the increased costs price- and features-wise.
While Apple’s services make up a rather similar portion of the overall company revenues as iPad and Mac sales, unlike the former vertical, the services one is trending upwards.
That considered, it is hardly surprising that some of the Apple bigwigs see services as the future foundation of the company.
There is plenty of room for growth and improvement in this regard, beginning with the company licensing its iOS to other operators.
New products make up the cutting edge of innovation and Apple has always been quite unbeatable in this regard.
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.