The 21.65% quarterly return on Apple (NASDAQ:AAPL) stock could prompt investors to lock in gains before shares potentially fall again. The stock erased the Nov – Dec 2018 bearish correction but now hovers around the 200-day moving average. iPhone sales numbers could lead to a breakdown in the stock in the next earnings report on April 30.
Apple will hide unit sales for iPhones, reporting instead total revenues. Service revenue growth may mask weak iPhone sales. And when Samsung’s S10 launch in China brought in line-ups and hype, even after making the device available online, Apple has a problem.
Apple announced News+ and video streaming services subscriptions, which should boost service revenue. The long-term is unclear for both initiatives because these markets are very competitive. Why would Apple users choose Apple streaming over Netflix (NASDAQ:NFLX) or HBO? Disney (NYSE:DIS) will also enter the streaming market with its valuable library of content. It is rumored that Disney will allow for billions in losses just to gain market share. Consumers benefit from the competition with more choice and should the battle lead to lower subscription fees, Apple, Netflix, and others all lose.
Despite uninspiring iPhone sales for Apple, the iPad and iMac refresh is a welcome announcement and is long overdue. The iPad Mini has specs similar to the latest iPhone and should reverse the sales declines.
Tech Insider
