Almost predictably, Apple (NASDAQ: AAPL) fell 5% on the week following the iPhone 8 and iPhone X announcement. Despite even a monumental technical achievement for Watch 3, markets are locking in profits on the stock instead of looking at the prospects of the product refresh.
The stock is down following the iPhone 8/X launch for two reasons. Investors are “selling on the news” since the stock reflects the new iPhone refresh news. The market also expresses uncertainties for a dual product launch.
If Apple’s more superior, iPhone X is not available on the market until November, it makes no sense for consumers to buy the iPhone 8 just yet. They are better off waiting for the 10th anniversary edition release first. For just a few hundred dollars more, consumers may decide which model to get.
iPhone X’s availability may be limited when it is released.
The device may require components that are not readily available. For example, the fast charging battery or display may limit the production volume. Apple may need more time refining the software on the iPhone X. This includes the software’s use of quad-LED flash, Apple Pay, and face unlock.
Takeaway
Apple stock is inexpensive. Investors should not forget it still trades at value levels.
Tech Insider
