For­get the new iPhone X, here’s why you need to own Ap­ple Inc stock

The Sudbury Star - - BUSINESS - JONATHAN RATNER

If you’re not in­ter­ested in pay­ing US$999 or more for the new iPhone X, there is a much bet­ter use for your hard-earned cash: Buy Ap­ple Inc. shares.

The stock has been on an ab­so­lute tear, ris­ing nearly 40 per cent this year alone. Much of those gains were in an­tic­i­pa­tion of new prod­uct launches, so with the share price down or flat since Tues­day’s un­veil­ing, the mar­ket is send­ing a mes­sage. It wants to see re­sults be­fore giv­ing Ap­ple any­more credit.

That of­fers in­vestors an op­por­tu­nity that won’t be around for long, partly be­cause Ap­ple shares typ­i­cally lose mo­men­tum around ma­jor prod­uct events, then move up into earn­ings sea­son. But the op­por­tu­nity also lies in the fact that a high price tag for the lat­est smart­phone won’t de­ter ev­ery­one, since it in­cludes ex­actly the features ev­ery­one was wait­ing for.

The iPhone X boasts an edge-to-edge 5.8 inch Su­per Retina OLED dis­play, an up­graded pro­ces­sor, wire­less/in­duc­tive charg­ing ca­pa­bil­ity, Face ID, a longer bat­tery life and aug­mented re­al­ity-en­abled dual-lens cam­era.

It will be the de­vice to have for the next year or so, whether you’re a pho­tog­ra­phy lover, technophile, or sim­ply want to im­press your friends and co-work­ers. So count on sup­ply of the new smart­phone to be con­strained — at least at first.

For those look­ing at cheaper op­tions, Ap­ple didn’t let you down, as it is of­fer­ing more typ­i­cal up­grades via the the iPhone 8 and iPhone 8+.

A new cel­lu­lar-en­abled Ap­ple Watch Se­ries 3, as well as Ap­ple TV 4K, will en­sure the com­pany be­comes a big­ger part of your life and wal­let. Th­ese prod­ucts should be good sell­ers dur­ing the hol­i­day sea­son, as Ap­ple con­tin­ues to en­hance the ecosys­tem ex­pe­ri­ence.

Since the iPhone X won’t be­gin ship­ping un­til Nov. 3, the later-than-an­tic­i­pated launch date could shift some sales from the first quar­ter of fis­cal 2018 (end­ing in De­cem­ber) to Q2. But re­gard­less of the tim­ing, we’re at the start of one of the strong­est iPhone cy­cles in re­cent years.

The iPhone 7+ didn’t achieve sup­ply-de­mand bal­ance un­til about four months af­ter launch, so ex­pect much the same for the iPhone X. That means Q2 (end­ing in March 2018) may end up be­ing a big one for Ap­ple and its share­hold­ers.

Ap­ple’s iPhone in­stalled base is set to sur­pass 635 mil­lion by the end of 2017, which will not only drive strong smart­phone re­place­ment sales, but thanks to its im­proved prod­uct lineup, will also pro­pel the high-mar­gin ser­vices rev­enue growth that has rightly be­come a fo­cal point.

SUP­PLIED PHOTO

Ap­ple’s iPhone in­stalled base is set to sur­pass 635 mil­lion by the end of 2017.

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