Apple is a stock that has led to quite a bit of conversation as of late. In fact, the stock is becoming the ultimate battle between the bulls and bears, fueling volatility and creating opportunities at every turn. Today, we’ll talk about the bearish argument, the bullish argument, and what binary options traders should be watching for ahead.
The Bearish Argument On Apple
When it comes to Apple, the bearish argument is indeed a relatively simple one, but a very strong one. You see, the bearish argument surrounds the iPhone. The iPhone has been said to contribute up to 80% of the profits that Apple generates, making the product the company’s clear flagship offering. However, that’s where we get to the bad news.
You see, Apple, for the longest time, was the first to present incredible innovation in smartphone technology. However, over the past couple of years, their updates have fallen short of amazing investors. As a result, it is expected by the bears that we’re likely to see a continued decline in iPhone sales, ultimately cutting into the company’s bottom line.
A big piece of the argument here is competition. After all, Apple has what is obviously one of the most expensive smartphones on the market. However, several companies are creating comparable offerings. While they are not exactly the same, they come at a drastic price reduction compared to Apple. Considering that Apple plans on increasing its iPhone price once again, the bears argue that the price spread isn’t going to be worth it for many, leading to weakness in sales.
The bears go on to point out a lack of innovation. At the end of the day, Apple hasn’t brought any mind-boggling tech to the market. Sure, we’ve seen updates, we’ve seen watches and pods, but we haven’t seen anything that made the tech industry sit at the end of their seats until the launch date!
The Bullish Argument
While the bearish argument is indeed a strong one, the bulls have a decent argument of their own. First and foremost, addressing the iPhone issue, the bulls see it very differently. There’s no denying the fact that iPhone growth isn’t what it could be. However, the bulls argue that with augmented reality coming soon, this is going to change in a big way. Augmented reality will open the door to app development that many say Android won’t be able to match for years to come. The bulls argue that this is going to lead to gains in iPhone sales.
However, the bullish argument doesn’t just stop at the iPhone. In fact, they disagree with the idea that the company is lacking innovation as well. While the AppleWatch, EarPod, and HomePod aren’t likely to become flagship products in and of themselves, the Apple believers believe that these products will combine to provide meaningful revenue ahead.
What Binary Options Traders Should Be Watching For Ahead
At the end of the day, we know that Apple is going to move. With such strong arguments on both sides, investors are likely to cause quite a bit of volatility ahead. If you’d like to take advantage of the opportunities created by this volatility, all you need to do is follow the news. Specifically, watch the reaction to the next iPhone update as well as sales reports surrounding the company’s other products. Any updates surrounding these topics will likely lead to movement in the stock ahead.
What Do You Think?
Where do you think Apple is headed moving forward? Join the discussion in the comments below!