Apple Inc. (AAPL) to See its Stock Price Rise

Apple Inc. (NASDAQ:AAPL) has released a series of new products yesterday, September 9, and analysts are already carefully examining the stock’s performance. Brian Blair, Rosenblatt Securities analyst, stated at CNBC that numbers on Apple Inc. (NASDAQ:AAPL), which sells at slightly lower than $99, should be raised, but gradually.

Apple Store on 5th Avenue, New York City. Designed by San Francisco based design firm Eight Inc.

Counter-intuitive, or at least not that obvious, the new Apple Watch will bring a stream of sales, which are expected to significantly bump the company’s price, but that will be seen only through 2015. Currently people are just approximating the average sale price of the device and the amounts that will be produced, to get a better overview of Apple Inc. (NASDAQ:AAPL)’s performance.

“[…] Estimates are going to be all over the place today, I think some guys will probably be in the 15 million unit range, some guys will be 50, but if you apply an average selling price of around $450 to that, this becomes a very large business. This can be a $20 – $30 billion business next year […],” said Brian Blair.

It is true that the actual revolutionary device unveiled was the Apple Watch, not the iPhone, which usually brings us to think about Apple Inc. (NASDAQ:AAPL). The Watch will be a small detail on our wrists that will be added to the unique ecosystem from the Cupertino, California-based company.

We haven’t forgotten about the new payment system to be introduced by the tech titan, but it will be applicable to about 220,000 locations, requiring some time till more opportunities are opened up and the platform is adopted throughout the market. This will boost prices in longer term, it’s full power might be sensed at the end of 2015, maybe later.

One more fact to be noted regarding the payments, for those thinking that Apple Inc. (NASDAQ:AAPL) is planning to take credit card companies out of business, it is actually kind of the opposite, since the company does not present an actual alternative to the way cards function (there will still be a bank account tied to the device). However, switching from passwords and plastic to fingerprints and smartphone enhances security, which will be a load of everybody’s shoulders.


Disclosure: none