Ahead of the very anticipated release of the new iPhone 7, the stocks of Apple Inc started raising. However, over the past 5 days, the stock was traded very frequently and hence the stock price shot up, which our analysts believe is due to the iPhone 7 hype. Our analysts explain this to be the reason why the stock has come down tumbling today.
Apple Inc (AAPL) stock price was hovering around the $105.5 mark till about 5 days earlier, however, after the day to day updates and rumors about the various specifications and details of the new iPhone 7, the stock saw a significant increase in its price. The stock has gone up by over 2.5% since then, but however has fallen by over 2.23% during the morning trading session today.
The California based mega company designs, develops, and sells consumer electronics, computer software, and online services. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, and the Apple TV digital media player.
The new iPhone 7 is set to be released on Friday, 16th September in 28 countries including the US. The company commented on this release, “The iPhone 7 and iPhone 7 Plus dramatically improve every aspect of the iPhone experience, reaching a new level of innovation and precision to make this the best iPhone we have ever made. The completely redesigned cameras shoot incredible photos and videos day or night, the A10 Fusion chip is the most powerful chip on any smartphone while delivering the best battery life ever in an iPhone, and an entirely new stereo speaker system provides twice the sound, all within the first water and dust resistant iPhone.”
The company added, “The new custom-designed Apple A10 Fusion chip features a new architecture that powers these innovations, making it the most powerful chip ever in a smartphone, while also getting more time between charges with the longest battery life ever in an iPhone. The A10 Fusion’s CPU now has four cores, seamlessly integrating two high-performance cores that run up to two times faster than iPhone 6, and two high-efficiency cores that are capable of running at just one-fifth the power of the high-performance cores. Graphics performance is also more powerful, running up to three times faster than iPhone 6 at as little as half the power, enabling a new level of gaming and professional apps.”
People all over the market have got different opinions of this situation. An expert commented on this, “I see little product innovation that will prompt the company’s large installed customer base to upgrade its smart phones, computers or Apple Watches. Nor do I see any new-product categories on the horizon that will move the company’s earnings “needle” over the foreseeable future. As a result, I believe that Apple’s valuation level remains significantly exposed as the company faces a period of disappointing sales, earnings and cash flow.”
Despite the major ups and downs, our analyst advises that Apple is a risky stock to buy right now, however with the anticipated iPhone 7 release right around the corner, buying the stock at its current low point might turn out to be a smart move.