Apple’s 2018 Keynote: What’s New on the Tech Front, How Fans Reacted, and What All This Could Mean for AAPL Stocks
- The latest Apple event revealed 3 new iPhones for 2018 and a smart watch
- The company quietly removed iPhone X and other devices from their store
- Many thought the event lacked the polish and enthusiasm of previous releases
Source: Unsplash.com | Photographer: Carles Rabada
After initial bouts of excitement preceding the most anticipated 2018 event for Apple fans, many were left largely disappointed by what the company had in store. Naturally, this sentiment was instantly picked up by the global markets and negatively impacted the company’s stocks.
Now that the latest Keynote is behind us, was the public’s response warranted and was its reaction to Apple’s 2017 event really any different?
The 2018 Apple keynote event felt too safe
Apple’s long-awaited tech presentation was held on September 12 in Cupertino, California. There, the company pulled up the curtains on its latest smart watch and a new lineup of mobile phone products: iPhone XR, XS, and XS Max.
Source: Pexels.com | Photographer: Jess Watters
But while introducing a truly innovating way of confusing customers (who reads “X” here as “10”, anyway?) all models felt more like incremental improvements and less like an upgrade.
Let’s take the iPhone XS, for instance. If we were to compare it with last year’s anniversary iPhone X model we would discover that the XS has a slight edge by offering:
– The ability to support 2 SIM cards simultaneously;
– Two rear cameras and optical zooming;
– The option to add blur to already taken photos;
– A slightly faster A12 Bionic chip (a feature mostly relevant to non-Apple devs since it now allows them to run their own AI algorithms on the company’s proprietary hardware).
Not exactly game-changing, especially if you consider the XS’s current price of $999.
What’s even worse is that the XR, which is supposed to be the budget-friendly version of its bigger brother, beats the XS in almost every regard save for its screen, which is LCD and not OLED 1080p. The XR’s screen is bigger, the phone is significantly cheaper, and it’s offered in a much wider colour palette.
What upset attendants even more is that the company’s execs mentioned nothing in terms of new Apple Airpods.
The unexpected winner: Apple Watch 4
Source: Unsplash.com | Photographer: Casey Horner
To the surprise of both presenters and journalists, the O-ohs and A-ahs of the public were mostly directed at what was widely regarded as Apple’s underdog in the event: the Apple Watch Series 4.
The new Apple Smart Watch brings significant improvements to the table, such as:
– A bigger display than the iWatch 3;
– Fine-tuned fitness tracking system;
– Medically approved EKG (electrocardiogram) heart rate monitor.
However, users will still need an iPhone to unleash the iWatch 4’s full potential. The device will be available for pre-order starting from $399 for the GPS-only version.
The company quietly discontinued some of its tech
While the event was in full swing Apple was busy terminating some of the company’s most praised products from the Apple Store, including the iPhone SE, 6s, and the just recently released X, to much public outcry.
It also erased all traces of the upcoming AirPower wireless charger from its website—a promising product that was announced just one year ago.
How did Apple’s decisions affect its stock value?
According to LikeFolio, a data firm specialising in the tracking and analysis of social media posts, the number of people who are keen on purchasing the latest and greatest of Apple’s devices has reached an unprecedented low not witnessed since 2015.
LikeFolio’s founder Andy Swan weighed in on the matter by commenting the following:
“It’s not a good sign for Apple. The last time purchase intent was this low for a Keynote event, Apple sales fell year-over-year for the first time in 13 years.”
He also noted that the 2017 Keynote generated considerably more social buzz and excitement for the then brand new iPhone 8 and X models, which continued for 9 months after the event.
Source: DF Markets | The Keynote date (12 September) is shown with arrows
However, a quick comparison of the September intraday charts for both 2017 and 2018, found above, would reveal a common thread—in both instances Apple’s shares have taken a major hit immediately following the event!
As we can see in the graph for September 2017 prices were quick to recover as soon as the new products were shipped out. The same could very well happen this year too, especially if we consider how well-received the latest Apple watch was—so much so that Fitbit saw its stocks plummet by 7% after the announcement!
Despite AAPL stocks closing at $217.93 (down 2.66%) this Tuesday, the company has every chance to recover its 7% rally for August if people’s excitement for the iWatch 4 is to retain its momentum in the months ahead.
How about you, dear readers—do you believe that Apple’s stocks will continue their downhill slide or will they make a strong comeback once the new products are out? Let us know what you think in the comment section below or hop right in and trade Apple shares from our flexible and convenient platform.