Apple Event: Stocks trade lower post-event, analysts reaffirm stabilisation


by   |  VIEW 126
Apple Event: Stocks trade lower post-event, analysts reaffirm stabilisation

Each year, Apple's annual product launch event is a much-awaited affair with curiosity sparked among technological analysts and prospective consumers of the brand. The 2018 edition of the event, held on 12th September, was no different.

The event didn't disappoint and the company CEO Tim Cook unveiled the three new iPhones which will be hitting both American and international markets in a few days' time. There was the 5.8-inch iPhone Xs Max which is the costliest of the three models (at $1099) and which will be replacing the iPhone X, which has been since phased out by the company.

The other two models launched are the iPhone Xs (at $999) and the iPhone XR. XR will be the cheapest of the three phones launched this year at $749. The cost factor of the three phones notwithstanding, the stock market, too, showed its reactions towards the announcement.

According to a US News report, Apple stocks were trading lower by 1.7% than their recent usual following the event. Analysts said that while was a deviation from the buoyant trend Apple had been witnessing, this was good for those who were keen to invest in Apple for a longer run.

Earlier, in August 2018, Apple had come the first company in the world to cross the trillion-mark in market value. Wamsi Mohan, an analyst at the Bank of America explained and stated, “Shares may retreat a few percentage points the day after the event, but, in the past, shares have had positive price performance 60 days after the events, especially after major iPhone releases.

If perceived higher pricing is interpreted as a negative post event and the shares pull back, we would see that as a particularly attractive opportunity to buy the stock." Along with the launch of three newer phones, Apple also launched the Apple Watch 4 Series with significant improvements to its predecessor.