A proposed ‘bundle’ of Apple (AAPL) products for one low price is the latest reason that even at a nearly $ 2 trillion market cap, the tech giant’s share could still be undervalued.
Rene Richie
told Yahoo Finance’s The First Trade. “We saw them reach their goal early on to double revenue from services. And it seems that still has running room for them. And if we approach things like augmented reality glasses, all of these services, that’s a greater service for all the value they can tap into. “” Data-reactid = “17”> “I traditionally think Apple’s inventory is always undervalued,” Veteran tech analyst Rene Richie told Yahoo Finance’s The First Trade. “We saw them reach their goal early on to double revenue from services. And it seems that still has running room for them. And when we approach things like augmented reality glasses, all of these services, that’s a greater service for all the value they can tap into. “If the latest speculation about Apple holds true, it may well be on the way to doubling its revenue from services in the not-too-distant future.
Apple plans to debut a host of subscription bundles when they unveil their new crop of iPhones in October, according to Bloomberg. There will likely be several layers, such as an entry-level one that offers Apple Music and Apple TV +. More expensive bundles may include Apple Arcade, Apple News +, Extra Cloud Storage, Apple Music and Apple TV +.
Photo by: STRF / STAR MAX / IPx 2020 7/30/31 Apple announces a 4: 1 stock split after a very successful quarter.
Each service package would provide a fresh, recurring revenue stream in Apple. And it would come at the moment of potentially the introduction of Apple’s first suite of 5G iPhones. Pair these two growth drivers together, and Wall Street may soon trip over on its own to mark its estimate for estimates on Apple for the next several years.
The tech giant’s share price would theoretically follow the growing tide of those sales side upgrades.
“We believe this could be a major move for Apple and potentially increase the trajectory of services revenue by 20% by 2021. This is why Cook & Co. will continue to make the installed base with the bundling strategy profitable in our opinion a brilliant move,” Wedbush tech analyst and Apple bull Dan Ives tells Yahoo Finance.
Apple’s stock has been climbing a cool 58% year to date. The Nasdaq Composite won 23%, while the Dow Jones Industrial Average – of which Apple is a member – fell 2%.
@BrianSozzi and to LinkedIn.“data-reactid =” 39 “>Brian Sozzi is an editor-in-chief and co-anchor of The First Trade by Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and to LinkedIn.
Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, en reddit.“data-reactid =” 53 “>Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, en reddit.
