Last fall Apple’s stock began a free fall of sorts, exacerbated by a warning from Tim Cook that all was not well in the iPhone Kingdom. How about this one? “What goes around, comes around?” Rebound? Or, dead cat bounce?
Timing Is Everything
Back in early January Apple had no choice but to announce that financials would take a hit. It did. APPL was pummeled. I don’t know if there’s such a saying as, “What goes down, must go up” but that’s what happened in recent months. Apple’s stock is something of a darling. Again.
Apple’s Service component, the newest revenue and profit machine, sits alongside hardware and software– and Apple has learned to manipulate the market more than it dared in decades past. Last week saw a bunch of new products hit the streets. New iPads, new AirPods, new iMacs, a bunch of new iPhone cases and Watch bands to highlight the spring season.
This week Apple
launched introduced a number of big name products for Services.
Apple News Plus – A subscription service for magazines and news; ostensibly to help save the industry of the toxic spill we call the interwebs.
Apple Card – a branded credit card that will arrive with privacy and security built in, no annual fee, and daily cash back, but not low interest rates.
Apple Arcade – yes, subscriptions are here to stay and games makes a perfect platform, in this case, with exclusive games you won’t find elsewhere.
Apple TV Channels – remember the Apple TV app? Now it has and does even more with brand name channels and an option for you to spend more money. How much, Apple?
Apple TV Plus – Think Oprah Winfrey, Reese Witherspoon, Steven Spielberg, Jason Momoa, Steve Carell, Jennifer Aniston, Alfre Woodard, Sesame Street’s Big Bird, J.J. Abrams, and many other big names working to bring exclusive video content to Apple’s ecosystem? How much? That’s the teaser kept hidden until the stock market can swallow and digest all the recent events.
Notice the distinction between last week’s hardware announcements and this week’s services announcements. Last week was press release. This week was an event at the Apple church in Cupertino.
The timing is impeccable. Let’s see if Apple has timed the stock market appropriately with a staggered rollout of each new Services product. The stock market is fickle. It loves growth. It loves the future. It pays dividends to companies that thrive on the future and the future is all about hope.
Apple’s executives have learned a tough lesson and the company is playing itself to the stock market by highlighting services, the new and trendy revenue and profit stream.