Is Apple Stock a Buy? In this AAPL Stock Analysis video, we go over the 2019 Apple Keynote by Tim Cook and explain why AAPL Stock (Apple Stock) is a STRONG BUY for 2019. I get asked if Apple Stock is a good investment, and I answer that in this video. Apple just had their annual event where they revealed the new iPhone but many were left unsatisfied. I watched the whole event and there was 1 theme that was consistent with every product or service launch that stood out to me which I think will be a key factor in driving Apple's stock price to well above $300/share.
Analyst Price Target for AAPL:
If you didn't catch it, the one theme common with all of these product and service launches were the relatively affordable price tags. AAPL has been a brand that has commanded a premium, year after year, for every product they sell, however their flagship devices like the iPhone and iPad are reaching points of saturation and features aren't wowing customers enough to entice them to dish out $1000+ on a new devices. So AAPL seems to have a new plan - and that is to focus on growing the Apple Ecosystem. If you can't entice people to spend $1000+ on a new iPhone, maybe if you sell them a lower spec iPhone at a lower price, it would encourage them to upgrade - that's what the iPhone 11 starting at $699 is for. If you can't get people to spend $500 on a new apple watch, sell the older watch at a cheaper price to get them into that product line - that's what the Series 3 is still being sold for. If you can't get them to upgrade to buy an iPad - drop the price and add more value to the product - that's what the new iPad at $329 does. And then the icing on the cake - offer them a year of free Apple TV+, so they get access to the content and hopefully stay subscribed after the year is done!
ALL of these things are designed to attract net new customers who have never owned an Apple product before to join the ecosystem
AND at the same time encourage existing customers to dish out some cash and upgrade their older devices - to something new and exciting at a more affordable price point. THIS right here is absolute genius from Apple and as a shareholder I'm thrilled. Many were expecting a lot more from this event, but I think this year's event served as a filler to grow the ecosystem and user base even larger in preparation for a groundbreaking 5G iPhone which I think will be released in 2020. Apple knows many people were holding out this year for a 5G phone, and they didn't give us that but - the compromise was the iPhone 11 - which is still a beautiful phone, better than older iPhone's, at a price tag that IMO is just right to get people to dish out the $699 this year. My guess is their goal is to get them to upgrade again next year, by making the 2020 5G iPhone something drastically different. It's a smart business decision - because 5G isn't even widely ready from the carriers so to have it in this year's model would be a waste.
The services business for AAPL has been growing incredibly fast YoY, accounting for 20% of revenue from last Q and with the launch of Apple Arcade and Apple TV+ at the low price point of $4.99, this has big potential to grow services to 30%+ of Apple's revenue. $5 is like pocket change for most people, and they would happily pay this for access to Apple TV+ and/or Apple Arcade, especially once they are in the ecosystem. I think Apple is genius in the way they are approaching this - and will most likely raise this cost over time once they have a core group of customers devoted to these platforms. It's just the reality of the situation and I couldn't be more thrilled with how this will help drive apple stock to $300/share or more in the coming years. Apple currently has 4.52B outstanding shares, and if we multiply that by our $300 share price, we get a market cap of 1.356T, and we currently sit near $1T.
#Apple #AAPL #iPhone11 #PositiveInvesting
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