Hi our favourite readers! We thought it would be nice to publish one more article for you.
Today HNFC gives you an update on the new iPhone X and some financial clues on Apple's
new strategic decision. We think its game changing product for them and here is why...
On the 12 of September, Apple presented during its Keynote the product that at the same time: celebrates iPhone 10 anniversary is a tribute to Steve job genius and is here to make a strong statement for Apple on the smartphones market: the iPhone X. The commercialization of this new device will start on November the 3rd.
To understand why we have to focus on this iPhone particularly and why according to us it is already a true added-value for Apple, we have to look back at Apple's history.
Tim Cook (current CEO of Apple) said it “We have never made such a move forward before the first iPhone.” Thus, this new iPhone is here to break with the past tradition of Apple products (iPhone 4 then iPhone 4s etc). The iPhone X is here to embody the innovative spirit of Steve Jobs.
Steve Jobs had a key value which was that he strongly wanted the Apple products to be revolutionary for the society. We can mention the Macintosh launched in 1984 and the iMac in 1998.
The first product was a revolution in the world of the microcomputer, some even believe it was “the product that has changed the face of the world”. The novelties were mainly the graphic user interface human machine dialog thanks to pictograms on the screens and the mouse, the appearance of the mouse and of different writing fonts. It can be seen as normal thing in the 21st Century but at that time, the only writing was white or green (on a black screen) and there were long lines to copy to the file.
Then, the iMac innovated in the outside aspect of the machine and in some inside characteristics. Indeed, it looks futuristic thanks to its “Bondie” blue translucent set comparing to the beige color at that time. Plus, it possessed USB connections – to connect keyboard, printer... – what was quite new, and Job wanted for this computer only a CD drive and no more floppy drive, even if it was still very common. He was betting on the future using the words of a hockey star, Wayne Gretzky, “I skate to where the puck is going to be, not where it has been.” The co-founder of Apple was finally right as the floppy quickly disappeared.
In our opinion, the same effect will happen with the launch of the iPhone X because strategically it is a big event. Tim Cook said it. The news agree with his words. People are more than enthusiast about it: the iPhone X is a revolution.
We can mention the screen side to side, the two 12 megapixels sensors with “studio” filters, the wireless charging, the Face ID – instead of the Touch ID – and the disappearance of the “Home” button. Thanks to Face ID, which works thanks to a reconnaissance of 30.000 points of the face, it is possible to thanks “animojis” as you can see it on the presentation video of the iPhone X
(Meet iPhone X). Of course, we can see this application as useless but it is technically amazing and represents a real forwards move for the smartphone industry!
Apple is taking back its place of strategic leader in the technological industry with all of these innovations. The iPhone X is the device that could carry Apple to a place of ultimate leader.
From a financial point of view, the launch of this new product (the iPhone 8 and 8+ were launched at the same time) will certainly boost Apple’s turnover. Analysts planned in August a “super cycle” for the company from Cupertino on several quarters following the launch of the iPhone 8 and the iPhone X. Moreover, its turnover has grown last three quarters which is positively seen at Wall Street: Apple's share’s price has grown accordingly. The previsions of the company conferment this trends with an expected turnover of 49 to 52 billion dollars for the period of July to September – 4.5% to 11% growth comparing to last year.
The only negative aspect of this Keynote is that for the first time Apple is exposing itself to strategic cannibalism. We'll explain that further. In one Keynote, Apple presented the iPhone 8 and the iPhone X. Actually, the last is attracting all the attention and the other is considered as another classic iPhone device. The price is the only factor that could push a customer to the iPhone 8 versions instead of the iPhone X (1159 euros for the iPhone X and between 800 and 900 euros for the iPhone 8). By putting so much hype around the iPhone X, some analysts are concerned about the iPhone 8 future…
Nevertheless, with the launch of the iPhone X, Apple has increased the technologic and economic gap with its opponents (as it was the case after the launch of the Macintosh and the iMac). The firm seems to have finally found a solution to its competitiveness issue. We hope that even without a tribute to Steve Jobs, Apple will keep its innovating spirit.
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Written by Etienne Coltat│Independent financial analyst
Edited by Vee Venski
This article is not a promotion of financial investment. Investing money in financial instruments is risk-reward process. Losses and gains are part of financial investment process. Only invest money you can afford to lose.