Apple is a company that throughout its history has been known for secrecy surrounding its products. Any time a new product comes out, consumers, investors, and the media are left in the dark about the product until it is unveiled. Apple plans to unveil its iPhone 6s on September 9th; and for the most part, the secrecy remains. However, there has been one big leak that could threaten the company’s stock. Today, we’ll talk about what the leak is, what it means for the stock, and what we can expect to see moving forward. So, let’s get right to it..
Apple’s iPhone 6s Price Leaked
The leak surrounds price and capabilities. According to Invest Correctly, the iPhone 6s will come with the same price tag as previous versions in Europe. Considering Europe’s pricing is the same, it is expected that the pricing will also remain the same in the United States. That means that the 16GB model will be $649, the 64GB model will be $749 and the 128GB model will be $849. The pricing model displayed in the leak also insinuates that Apple has made no changes to the amount of storage available on the new iPhone.
What This Means For Apple’s Stock
In my opinion, this is incredibly bad news for Apple’s stock. The reality is that Apple has already been having a hard time maintaining market share in the smartphone market place. As competition continues to get more and more pressing, Apple is finding it harder and harder to outdo itself with regard to iPhone sales.
In the mean time, economic conditions in Europe simply aren’t what they were last year. They are a bit more strained at the moment. Therefore, with Apple making the decision to charge the same amount of money as normal for their newest version of the iPhone, many investors are starting to ask whether or not the company will be able to beat the amount of iPhone units sold during the sales of the previous version. If Apple can’t outdo itself, the stock is likely to fall in value.
With questions revolving around the leaked price of the new iPhone model, it’s likely that Apple’s stock is going to be heading into some resistance in the market. The simple fact here is that smartphones are becoming smarter, faster, and most importantly, cheaper. While the average consumer would have had no problem sticking with a competitively priced iPhone, I can see how such a big gap between the value of the iPhone and the value of the competition can hinder sales; ultimately costing stockholders.
As a result of the news, Apple stock ended in the red today. Considering overall investor opinions of the leak, I wouldn’t be surprised to see the stuck running into more and more resistance as investors wait for the unveiling on September 9th.
How To Take Advantage Of The Trends
Overall, I think the trends are going to be relatively flat. This means that the stock is likely to jump between support and resistance, but not likely to break either. Therefore, binary options traders should watch the stock closely. When the value reaches support, purchase call options to ride the resulting uptrend to resistance and profit. When resistance is met, purchase put options to ride the resulting trend back down to support; where profit can be found once again!