The day after the AAPL announcement and it seems Wall Street is confused on how to evaluate the news. With comments ranging from AAPL tanking on the news to AAPL running forever on the news, there are a lot of mixed reviews out there.
This is how I interpret the announcement.
AAPL did not announce pricing outside of their new news service. This was the biggest disappointment of the event. This is also a major reason for confusion. We should just assume it will be slightly higher than the industry average because AAPL always charges a bit more than the standard industry for products.
Content creation. This might be a big one. With huge celebrities to have their own shows or series, will this be exclusive to AAPL only? Either way, the biggest name to join forces was Oprah. That is a HUGE partnership and I love the idea of Oprah aligning herself with AAPL.
AAPL Arcade is similar to content creation except AAPL is working directly with some of the biggest video game creators out there. I think this will be a huge surprise and smashing success. If you commute into work every day on the train, just look around you and see how many people are playing app games. This could be one of the biggest and constant revenue generators for AAPL.
The AAPL credit card. This is huge specifically for AAPL pay to be accepted anywhere Mastercard is. Apple has partnered with Goldman Sachs and Mastercard to bring you a no-fee line of credit. Pretty amazing to hear AAPL has gone off to offer credit to clients and it wouldn’t surprise me to see a lot of people sign up with AAPL.
While there were some holes needed to be filled and questions not completely answered, I do think AAPL is in a great position moving forward. Remember, AAPL valuation is not really tied to iPhones sales as much as their services. That is where AAPL growth potential currently is based on and I think the news is a strong positive for AAPL moving forward in 2019.
In addition, a U.S. administrative-law judge believes that Apple Inc. has infringed on a Qualcomm Inc. patent and that certain iPhone models should be banned from entering the U.S., according to a ruling issued Tuesday.
Judge MaryJoan McNamara said in a notice of initial determination that infringed on a single aspect of one of three patents involved in the dispute, one of two that Apple and Qualcomm have in front of the U.S. International Trade Commission. Judge McNamara suggests a “limited exclusion order together with a cease and desist order,” which would place an import ban on certain iPhones, mostly older models.
