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New Generation of Apple Products, New Promise of Profits


Some have questioned how Apple’s innovation, and in essence its business, would fair after the death of co-founder Steve Jobs. There have been rough patches to be sure, like the $14 billion tax bill from the EU last year. Things started off rough, but the steadily rising Apple stock price looks favorable for the tech giant.

The experts are weighing in, and 2017 is expected to be a good year for Apple Inc.

Hedge Funds Are Backing Apple

One clear sign that Apple stock is on the upswing is the hedge fund activity. Hedge funds are already betting on Apple given that institutional stockholders are very optimistic. Institutes are increasing their holdings with some Apple ownership increasing as much as 50% year-over-year.

Another consideration being factored into the hedge fund projections is what Apple has in store for consumers in 2017.

New Apple Products Are Set to Cause a Stir

Part of Apple’s value is being able to get consumers interested in their products. So interested people wait outside the store for more than a day to be the first to get them. Apple’s capability to create a stir has fizzled in the last day or two, but that may soon change.

iPhone X (iPhone 8) is already making headlines and Apple hasn’t even announced its release. Leaked photos and information suggest that Apple will soon roll out their biggest and priciest iPhone yet. Early reveals estimate it will be all-new OLED display measuring a massive 5.8-inches. However, the bevels at the top and bottom will shrink so the overall size will be smaller than the iPhone 7 Plus.

The iPhone X promises to be the most dramatic design reinvention since the iPhone was first released. It will have a larger screen packed into a smaller frame and functional upgrades like the MacBook-inspired toolbar. The newest iPhone could be an indicator that Apple is going to focus on the high-end consumer market rather than leading the way in cost effective mid-grade devices.

The iPhone X isn’t the only product under development at Apple. The tech company has plans to release an impressive number of products in 2017. The products rumored to be released this year include:

  •  iPhone 7S
  •  iPhone 7S Plus
  • Apple Watch 3
  • iPad Pro 2
  •  iPad Pro Mini
  •  Macbook Pro 2017
  • Touch Bar keyboard
  • Apple smart glasses

Another segment that Apple is expected to move into more aggressively this year is smart devices for the home. Apple already offers its HomeKit software and apps on iOS devices, but the company could soon start releasing more compatible devices that sync together. Google, one of Apple’s top competitors, has already begun to corner the smart home products market with their acquisition of Nest.

This onslaught of products that push Apple innovation forward is an indicator the tech giant is regaining its momentum.

The Buffet Seal of Approval

Warren Buffett is perhaps the most revered investor in modern times. He’s so meticulous in his projections that he rarely makes a miscalculation. Many people in finance and investment look to Buffet as a stock market barometer.

Recently Buffet’s firm increased its stake in Apple Inc. at the end of 2016. He didn’t just increase it he quadrupled his holdings. The move caused other investors to jump onboard and Apple shares swelled to a new all-time high. Clearly, Buffet is confident 2017 will be a good year for Apple, and others think they’ll get a return on their investment as well.

Don’t Discount Apple Services

Apple’s services are an often forgotten revenue stream. iCloud, Apple Play, Apple Music saw an increase of 18% between 2015 and 2016. Apple’s Tim Cook has stated the company plans to double the size of their services over the next four years. Part of the expansion could be related to new smart products for the home, and data storage is going to continue to be a growing need.

 

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