Investors soured on the stock with questions of whether or not the company could produce the innovative tech gadgets that capture consumer’s attention without Steve Jobs at the help of the company. They have come to the conclusion that the company can, especially with an anticipated iPhone 6 (retailers started discounting the iPhone 5s a few weeks ago) and an Apple device to be worn on the wrist set to hit the market later this year. Analysts are predicting the iPhone 6 will bring about record sales with the iWatch device providing an entirely new gadget from which the company will be able to produce revenue.
The question is will the stock be able to continue its momentum after the release of the next generation of iPhone. Apple has a history of its stock rising in the weeks ahead of a major new product launch, then dip in the months following it. The iPhone 6 is expected to launch in early September. The company has also had a hard time maintaining a price above the $100 a share barrier, which investors seem to have trouble overcoming.
The rise in stock prices is seen as an affirmation toward Apple’s Chief Executive Tim Cook, and his vision for the company going forward, and his insistence that the company will enter a new product category in 2014 which is assumed to be the smartwatch market. The anticipation of new products has caused a lot of excitement, especially when insiders like iTunes chief Eddy Cue say that those devices in line to be released are the best new slate of products the company has had in 25 years.
(Photo courtesy of Jon Rawlinson)