The post What Does Apple’s New iPod Touch Mean for Investors? appeared first on Innovation & Tech Today.Apple has finally seen fit to include a camera in the latest iPod touch hardware.
As a result, investors will be looking at sales figures for the new iPod Touch and also looking towards the release of Apple TV+, which is due in the autumn.Ĭurrently, Apple’s stock is trading at 15 times earnings and, with the new iPod Touch being the first of many anticipated product announcements from Apple, the stock looks attractive to buyers who might believe that the company’s poor end to 2018 may be well and truly behind it. The key to this will be how popular these new products are with customers. The future for Appleįor the remainder of 2019, investors will remain primed to see how much new products and services are contributing to Apple’s revenue and stock price prior to the launch of the 5G iPhone. For example, when looking specifically at iPads, the release of the iPad Air caused a 4.25-percent price increase in the stock price over the seven-day period surrounding the announcement, but the 4th generation iPad released a year earlier caused Apple’s stock to fall 4.5 percent from highs of $90 per share to just under $86.30 per share. When we look at other Apple product launches, we see a similarly mixed picture. But these product announcements have not been universally good news for Apple’s investors, as the hotly anticipated iPhone 3G caused a near 6.5 percent drop in the company’s stock price over a comparable period only 18 months later. When looking at the iPhone in particular, Apple’s most successful product announcement remains the first-generation iPhone, which caused a 10-percent increase in the company’s share price over the 17-day period surrounding the announcement. When Apple announced the original Macintosh in 1984, Apple’s share price dropped to $1.19, which shows the incredible trajectory of the company over the past 35 years, with Apple now valued at over $1 trillion and shares trading at around $170-$180.īut previous Apple product launches reveal a mixed bag in terms of stock performance levels. Since going public in December 1980, Apple’s stock has gone from strength to strength. What can we learn from previous announcements? Since the announcement in May, Apple’s stock price has been relatively stable at the $175-£178 range.Īlthough 2019 looks as though it might be a quieter year for the company in terms of product announcements, many investors are already looking towards the announcement of a 5G iPhone, which some analysts expect in 2020 and could cause major price volatility. For this reason, many community-based investors in Apple stock seem buoyed by the announcement, with 96 percent of traders buying Apple stock following the announcement. In the short-to-medium term, it’s likely we will see more announcements like this where Apple creates small revenue boosters that can add up to make a significant impact on the company’s revenue. In terms of revenue and stock price, the new iPod Touch might not get investors too excited, but it is an excellent example of a positive incremental change that the company is making, releasing low-cost products that get customers hooked on Apple’s services before they make larger investments on Macs and iPhones. (Credit: Apple.) The impact on Apple’s revenues Considering the mixed response that this announcement has received, let’s look at how the launch could impact Apple’s share price and revenue, before comparing the launch to previous announcements and releases.Īpple’s latest iPod Touch in blue. Secondly, for adults, it’s an iOS device that’s competitively priced, faster than before, and vastly upgraded. However, in principle, the new product bolsters Apple’s offering in two main markets.įirst, the iPod Touch remains a great option for parents who do not want children to own their own smartphones - or borrow their smartphones to play games. With Apple continually moving away from personal music libraries (closing down iTunes in the process) and instead pushing customers towards streaming services such as Apple Music, the move to relaunch the iPod Touch came as a surprise to many observers. Since 2017, Apple has gradually killed off its other iPod products, including the Nano and Shuffle, which now means that the Touch is the only iPod in Apple’s offering. On May 28, Apple announced a new version of the iPod Touch, which had previously not been updated for four years.