Apple Is Creating New Markets and Stock Should Rally
After the key announcement yesterday, Apple's shares have closed 2 percent lower, however as today the market has reassessed the prospects for the firm's new products, shares have rallied back up.
The shares of Apple closed at 112.57 after the company announced its new line up of products yesterday. The iPad Pro, the new iPhone 6S and 6S Plus and the revamped Apple TV have the prospects to get the company into new product markets.
Starting with the iPad Pro, Apple Inc is creating a new niche for its tablets. The new device is targeted towards professionals and as such it is boasting new features such as 3D touch, which is a touch technology the company borrowed from its Apple Watch and a stylus.
The Apple Pencil, as the stylus is called is going to bring a whole new level to the tablet experience for creative professionals. Aside from those who are looking to craft fine arts with it, the release of the iOS 9 for the iPad which is due in less than 10 days will add some more to the plate.
As a demo by Microsoft has shown, the productivity applications are getting a huge boost from the new feature in the operating system, where two apps can run side by side.
Looking at Apple TV the user experience has been completely revamped and in a very positive way. The new device is expanding the universe of the App Store to include the users.
The prices of the units are set at the high end, as is the usual case with Apple. With a strategic point to expand into financing the purchase of its products, at least in the U.S., Apple could raise its profit margins substantially.
The new products are likely to drive the prices of the shares of Apple higher in the coming days. We are going to buy daily calls if the price hits $112.00 tomorrow as aggressive players.
The trade would be reversed only if the stock falls below the support line seen on the chart. Another good strategy would be to buy lower for safety reasons, perhaps in the $111.00 - $111.50 if the price doesn't break below the blue line on a sustained hourly basis.