Another year brings another iPhone and another chance for Apple to flex their financial muscles. While some question the need to bring out a new flagship phone every single year, the reality is that consumers usually lap up the tech giant’s new products year after year.
The recent iPhone 12 event was another showcase of Apple’s superiority in the industry. It was the kind of event we’ve become used to from the Cupertino tech company, with glossy digital presentations of their new products and the respective features of each.
The iPhone 12 will no doubt sell like hotcakes, but it was notable that Apple’s shares took a dive during the event and in the subsequent days. Normally, this kind of event, which gives companies like Apple a chance to showcase their wares and prove that they are at the heart of innovation, but Apple’s decreased, all of which makes for intriguing analysis for users of skilling.com and similar trading platforms.
So, how can this be explained? One thing that could be pointed to is the frequency of Apple events. These take place several times a year, and happen now with such regularity that they have become more and more predictable. This means that they don’t pack the same punch that they used to, which perhaps helps explain why Apple’s stock price does not perform to the levels one might expect after such an event.
Another possible reason for Apple’s dip in shares is the culture of leaking which seems to pervade the tech industry, with Apple often the hardest hit by this. Events such as the iPhone 12 showcase are usually intended to be kept a closely-guarded secret until close to the event. When such announcements as a new iPhone come as a genuine surprise, they can lead to an increase in stock price as traders seek to jump on the bandwagon. However, the predictability and the fact that everyone knew the iPhone 12 was in the offing, with plenty of leaks surrounding its features, meant that there was little positive impact.
But even that does not fully explain why Apple’s stock dipped at such a significant rate. Instead, it may be the sense that a lot of customers, potential buyers and indeed prospective traders were not hugely impressed with Apple’s offerings. The news that iPhones will no longer come with power adapters or earbuds included in the packaging has clearly rankled with many consumers, and this has obviously played a part in Apple’s share prices decreasing.
These exclusions were justified in the name of reducing’s Apple’s carbon footprint, with executives stating that smaller packages mean that more iPhones can be shipped at a time, ultimately reducing the impact of the global giant on the planet. But many analysts have suggested that this is merely a guise for Apple reducing their production costs and ultimately making more profits as a result.
It could prove that as the iPhone 12 becomes readily available, Apple’s stock will increase once more, back to the kind of levels that will please both traders and Apple big-wigs. But the sense that the tech giant’s latest products and the spin with which they have been heralded have rankled with consumers remains palpable.
All in all, it makes it an interesting time for traders, as they seek to predict whether Apple’s stock price will rise once again. History tells us that Apple’s showpiece events often lead to a shares dip before gaining more traction once the products are released. The next few weeks for Apple could have a big impact on the trading landscape.
