Every time you flood the market with something new, it affects investors in a huge way. Share prices basically leap to a higher value and this is visible with the launch of iPhone 5. Those who buy and sell shares of Apple are ‘bullish’ after the launch of the youngest sister of the iPhone family.
Analyst’s raised the forecast for Apple’s share price by as much as $200 to between $750 and $1000. Apple’s shares were trading at $678.50 up 1.3%, in heavy morning trading on the NASDAQ. The new iPhone which pleasantly surprised people has shown a lot of promise. The thinner, lighter and faster phone with LTE 4G. Apple poses the biggest threat to HTC corp.
Consumers’ demand for iPhone 5 and Apple’s global reach, both point to the expectation of strong phone sales next quarter however itis mentioned that the sales may slow down in the first quarter of the next year. That would mean supply-chain forums pull in order may start to decline as early as in November, leading to flat growth in their sales and a limited upside room for their share prices.
Market Research firm Ovum from Melbourne, Australia said that it expected the new iPhone would become Apple’s most successful smartphone till date but the research also warned risks with iOS platform. Ovum said that If the iOS isn’t redesigned then in the coming two years Apple may find itself in the same position as Nokia and RIM.
However another theory says that Apple stocks under-perform during the days of the launch. Last year on the release of the iPhone 4S, the stock was down $2.70 that day. So after the launch of iPhone 5, everyone is waiting for the next earnings report that is due on October 15th. The launch of iPad mini is expected somewhere next months and that will also have its effect on the stock market.
Meanwhile we have to wait for the sales to begin from the 22nd of September, and then the stock market will show its true colours. The stocks are expected to perform good, as the iPhone 5 has come with better features, also the new iPod family is expected to contribute positively to the stock prices.
