Apple's special event – What to expect this coming week
Added: (Mon Mar 25 2019)
Pressbox (Press Release) -
This coming week Apple is set to further its campaign to show investors that Apples future lies in its services more than its hardware. The tech giant is widely anticipated to show the public two new offerings at Monday’s special event. Their new video streaming service and their news subscription platform.
Apple has stressed to the public and their investors that their services will be the pivot in their success for the future. Starting at the begging of the year when apple unexpectedly slashed their quarterly revenue forecast due to slipping IPhone sales the company has been pushing its existing and upcoming offering of services, which in the first quarter of this year comprised just 13% of its revenue. Apples services currently are comprised of the App Store, iTunes, Apple Music, and their iCloud platform.
Over the past week, Apple has unveiled a large selection of new updated versions of some of their existing hardware, including MacBook’s, Upgraded Air pods, and a new IPad Mini. Analysts are speculating that with these new releases Apple has left themselves with little for the company to unveil at their annual event except for its new video and news platforms. Both services which the company has neem teasing awaiting fans for months.
Apples anticipated streaming service launch would place Apple in an increasingly crowded industry, with many providers fighting for consumer attention and wallet share. Some of the biggest names Apple will be facing in their new endeavor will be well established Netflix, Amazon prime and newer entrants including Disney and NBC, which are both set to launch their own services at some point in 2019.
Katy Huberty of Morgan Stanley said recently “The investment community is generally cautious on Apple’s ability to differentiate its new streaming video service given market leadership by existing players. As a result, we believe Monday’s launch event could serve as a stock catalyst to the extent Apple bundles several services into a differentiated package.” Huberty went on to point out that Apple Music had launched amidst much skepticism but went on to contribute over 5% of annual service growth for the company in its first full year after launch, and suggesting a similar lucrative position for some of apples newest offerings.
Apple stock price has been rather turbulent over the last six months, however with the recent news of the expansion into new industries, apple share price has seen a nice rebound from lows of $142 USD at the beginning of January.
Harley Chan – Syracuse Group