Announcing Apple This and Apple Thatย
The new iPhone 11 has been announced, and the world is once again playing spot the difference between this and older models. As it turns out, the tech giant is moving fast, and investors risk being left behind.
Late last year, a few non-conformists emulated an old strategy of Warren Buffett. They placed their faith in the unpopular large company, knowing its strong fundamentals would help it come back after being knocked off course. Apple was that company. With the stock market splitting at the seams, Apple was the poster child of a hammered tech sector. According to its stock, the company lost half of everything it was worth in the space of three months. In hindsight, that was a bargain.
However, the game is never over. Yesterday in Cupertino, Apple used its biggest media event of the year to announce another iPhone. The flagship product was born out of a motto to break the status quo. Now, the iPhone is the status quo, and loyal shareholders may be left out of pocket if they expect Apple to change the world for a second time. CEO Tim Cook now treats the iPhone as a luxury item, spending the lion’s share of his working hours on software and services.
An Apple trade today boils down to whether you think Apple’s extracurricular ventures are worthy of filling the growth gap left behind by an ever more exclusive iPhone. Apple machine gunned ideas at its Cupertino event, dart throwing in an effort to find โthe one.โ However, a subscription service called Apple TV+ may have a good chance of hitting the bullseye. It’s undercut Disney+ on price, and a billion-dollar content slate shows Apple is serious about streaming. The space is getting very crowded very quickly, making it one of the most interesting areas to invest. Who said good investing had to be boring?