Apple Shares Ease On iPhone Release
It was a modest reaction from investors to the launch of the much hyped iPhone 8 series, as well as a new, expensive flagship model as the company moved to three versions of the phone.
Apple shares edged higher, then lower in after hours trading after closing down 0.4% Tuesday after the launch of its new iPhones, which as expected, includes the top of the line X iPhone (pronounced Ten).
The shares rose 1% during the launch but eased as investors realised the new products won’t have much of an impact on the current quarter’s figures.
They ended at $US160.86, fell further in after hours trading, then turned higher to trade close to $US161, then fell again.
In the last three months, Apple stock has climbed 10.2%, with the S&P 500 index gaining 2.6%. The Dow of which Apple is a component, is up 4.1%.
Year to date Apple shares have risen around 40% on expectations the new phone will reignite sales growth after a rare revenue decline last year.
The timing of the sale of the X means the impact on Apple’s results would not be felt in the current September quarter, which is its 4th of the company's 2016-17 financial year.
Apple executives announced at a function in its new HQ in California.
The new iPhone X will be priced at $US999 and will be available for pre-order in October, and not delivered from November 3 onwards. This will enable the tech giant to generate holiday shopping sales in the December quarter, but not book revenue in the next two and a bit weeks.
The phone will be available in nine countries initially, including Australia. It accounts for almost two-thirds of Apple’s total sales, and it’s a hub for many of the company’s other products and services.
Along with the new iPhone X, Apple also announced an iPhone 8, and, iPhone 8 Plus, as well as a new watch that includes cellular (mobile) connectivity, and new versions of Apple TV.
The iPhone 8 and 8Plus will be available later this month starting at $US699 and $US799, respectively.
Apple CEO Tim Cook said the latest flagship Ten handset is a milestone for the company a decade after the first iPhone release. “Ten years later it is only fitting that we are here in this place, on this day to reveal a product that will set the path for technology for the next decade," Cook said, calling the iPhone X "the biggest leap forward since the original iPhone."
Apple also announced it also had to make some big changes to battery, which now offers two hours more life than the iPhone 7. The iPhone X has also been made to work with Qi wireless charging, with the company releasing its own wireless charging dock known as Airpower. The QI open wireless standard is the charging method used by restaurants, shops, cars, airports.
Apple also unveiled a new version of its Watch with cellular wireless connectivity and a new higher-resolution TV box. Apple Watch wearers will be able to take calls, stream Apple Music and talk to Siri when out on a run or at the beach.
The new Apple TV box features 4K, also known as ultra-high definition, and high dynamic range, for richer and more vivid images on compatible TV sets. 4K movies will be available for download on iTunes for the same price as a standard high-definition film.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.