Review & Outlook

Our take on the investing, financial, & economic themes of the day

What to Expect from Apple’s Big Announcement Tomorrow

8 September, 2014 by Ben O'Brien in Commentary, Large Cap Stocks

For several years now, watchers of Apple have been waiting for some big, new, groundbreaking product. The company has prospered by updating its existing products, but if it hopes to continue its tremendous growth, it will need to launch something new as it did with the iPod and then the iPhone and iPad. Tomorrow Apple is scheduled for a new product announcement. Could this finally be the day?

 

(Source: Apple.com)

We wrote recently about Apple’s HealthKit and improved iCloud service as possible new catalysts for growth. Below is a roundup of links about some of the things that people are talking about:

iWatch 

Apple’s iWatch: Everthing We Know So Far (Tech 2)

iTV

Here Are Three Features That Could Make Apple TV A $10 Billion Business (Forbes)

The next Apple TV: What to expect from an updated streaming box (CNET)

Mobile Payment System 

How Apple Can Make Mobile Wallets Actually Work (Businessweek)

How Apple Thinks About Payment Systems (Quartz)

HealthKit 

Everything You Need to Know About Apple’s HealthKit (Yahoo Tech)

iPhone 6 

iPhone 6: What does Apple have to reveal Tuesday to stay on top? (Reuters)

 

The lead up to Apple’s big day was tarnished somewhat by the embarrassing recent security breach of iCloud that sent the stock down sharply, but a successful product launch could quickly overshadow that.

So what will the effect be on the stock? A successful new product launch tomorrow could give Apple shares a big boost, however, with the stock up 25% this year it seems a strong new product launch may be already priced in. If the event fails to live up to the hype, the stock could plunge. So in short, we don’t know what will happen. There could be a big move in either direction. But either way, tomorrow is an important day for Apple that could tell us a lot about where the company is headed and whether innovation is still alive at Apple.

One thing that we know for sure from the stories above is that, despite its lack of new products in recent years, Apple certainly seems to have several good irons in the fire. And with its valuation of less than 16 times 2014 earnings, the company still looks very attractive at this level.