Apple hits 11-month highs after its latest keynote reveals competitive streaming pricing and a new iPhone lineup (AAPL)

Apple iPhone event 2019

  • Apple
    shares jumped as much as 2.7% Wednesday, hitting 11-month intraday
    highs, after the company revealed updated iPhones, Apple Watches,
    and iPads at its latest fall keynote.
  • The company also announced its TV+ streaming service
    will cost $4.99 per month. The price falls under Disney
    and Netflix’s
    subscription services, and the two competitors saw their stock fall
    on Apple’s pricing reveal.
  • Analysts
    praised Apple’s pricing
    for the new streaming service, with
    Wedbush analysts calling the move “a major shot across the bow at
    the likes of Netflix and Disney.”
  • Watch Apple
    trade live here
    .

Apple
jumped as much as 2.7% on Wednesday following its latest keynote,
hitting intraday levels not seen since October 2018.

Though the tech company
is relying less on phone sales
and more on
its services business
to lift revenue, the iPhone remains one
of its most popular products. Wearable device and accessory revenue
has also steadily risen as consumers upgrade their iPhones less
frequently.

Here’s everything Apple announced at the Tuesday
event:


  • iPhone 11
    (from $699): featuring a new A13 Bionic chip,
    two-camera system, and new lavender and green colors

  • iPhone 11 Pro and Pro Max
    (from $999): featuring upgraded
    displays, three-camera system, improved battery life, and
    fast-charging adapter

  • Apple Watch Series 5
    (from $399): featuring an always-on OLED
    display, increased storage, and built-in compass  

  • Seventh-generation iPad
    (from $329): featuring a bigger screen
    and enclosure made from recycled aluminum

  • Apple TV+
    (from $4.99 per month)

  • Apple Arcade
    (from $4.99 per month)

Apple TV+ is slated for a November 1 launch, and Apple Arcade
will go live September 19. The two new services are tied to a slew
of operating system updates set for fall release, including iOS 13,
macOS Catalina, and watchOS 6.


Analysts were generally positive
toward the Apple’s pricing for
its subscription service. UBS
analysts praised the company for its bundling of services and
hardware, an advantage Apple holds over most other players in the
streaming wars. Analysts at Wedbush said Apple could gain as many
as 100 million streaming consumers over the next three to four
years.

“The pricing of Apple’s streaming TV service at $4.99 per month
is a ‘show stopper’ and a major shot across the bow at the likes of
Netflix and Disney among others,” Wedbush analyst Daniel Ives
said.

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Netflix
shares
plunged more than 3%
in the minutes following the Apple TV+
price reveal. Its most popular subscription costs $13 per month.
The streaming giant has seen its stock drop in recent months as
investors fear
it can’t keep subscriber growth steady
among increased
competition.

Disney
stock dropped more than 2%. It’s Disney Plus service
is slated for a November 12 launch
and costs $6.99 per
month.

The keynote began at 10 a.m. PT Tuesday at Apple Park’s Steve
Jobs Theater. Apple has announced new iPhones in the fall for
nearly a decade.

Apple shares trade for $220.85 as of 11:25 a.m. ET Tuesday, up
about 40% year-to-date.

The tech giant has 23 “buy” ratings, 21 “hold” ratings, and five
“sell” ratings from analysts, with a consensus price target of
$219.75 per share, according to Bloomberg data.

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AAPL


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Source: FS – All – Economy – News
Apple hits 11-month highs after its latest keynote reveals competitive streaming pricing and a new iPhone lineup (AAPL)