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Investors are hoping for new versions of Apple (NASDAQ:AAPL) IPhones would justify the twelve months, the 40% gains that Apple's stock has generated are likely to be disappointed. After a few days to take a closer look at the new specifications of the iPhone since last week's official unveiling, professional critics gave it a "meh." Collective
Do not mistake yourself. The new iPhone XS and the iPhone XS Max, bigger screen, are amazing devices. But, considering the entire year that separated the release of this line and the unveiling of its predecessors, one could have expected more.
This is not the end of the world … not even for the most loyal iPhone lovers. For shareholders, however, this is a new paradigm that could slowly, but surely, slow down the upward trend in AAPL stock prices over the long term.
The new iPhones are good, but not great
These are not premises that faithful followers of Apple will easily accept. These investors and consumers have become accustomed to, or even anticipate, significant technological advances with each new smartphone. The most recent versions, however, have been less and less impressive than previous generation devices. Indeed, the new iPhones are largely indistinguishable from the iPhone X devices unveiled in September 2017.
Largely – but not entirely.
OLED displays are not only sharp, but also support 4K HDR video. The phone's camera is also superior to the X camera. The XS even supports dual SIM cards, and even eSIM cards … for the handle of users that might need such flexibility.
The experts who have taken a closer look at the XS have, at best, mixed opinions.
The main concern is the price. The XS starts at $ 999 and the XS Max starts at $ 1099. IPhone fans who want to optimize their screen size and storage space will pay $ 1449. Even at the bottom of the price scale, the business demands a lot of consumers. Making monthly payments through a wireless service provider makes the price more acceptable, but the new phones still add between $ 50 and $ 60 to the monthly wireless bill for what is essentially a lease. .
TechRadar Summarizes the pricing system by saying, "This is a premium phone with an even higher price." wired Lauren Goode said that XS phones "do not express strong feelings – except perhaps the grief they cost so much," adding that they were "an evolution, not a revolution."
Bigger may also not be better.
The 5.8-inch screen of the XS (measured diagonally) and the 6.5-inch screen of the XS Max are both on the verge of heaviness. Although Brian Chen of The New York Times acknowledged that he had become a fan of larger phones, he also conceded: "These devices spend a lot of time in your pocket and your hand, and portability and comfort are often compromised. Cut. For these reasons, I've never liked the Plus phones, the range of iPhone launched by Apple in 2014 with 5.5 inch screens. They felt impossible to use with one hand and much too bulky in a pocket.
Regarding the camera, although it is better than previous iPhone cameras, XS cameras are not necessarily the best available on smartphones. Nilay Patel de Verge is always a fan of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Google Pixels. He explains, "We said that the best camera on the market in the market is Google's Pixel 2 for a year now, it's the norm to beat. And … I think the Pixel 2 still has a better camera than the iPhone XS.
It may be Goode's overall assessment that raises the most eyebrows: "It's an excellent phone. Do not expect to feel that way because you're dragging this phone out of your pocket or purse, with radically redesigned material.
Bottom Line for Apple Stock
These are just scathing criticisms. But it is clear that the intangible magic of the iPhone vanishes.
This is not a digression against Apple. Above all, it's a phone, and there's only one phone that can and should do. Silicon, glass, plastic and various polycarbonate materials can only do a lot and remain portable. In addition, Apple has increased the pressure on revenue products other than the iPhone.
However, Apple's stock owners should keep in mind the humorous response as a possible red flag. Consumers are less and less seduced by the business and device they once put on a pedestal. Although the interest of a high-end phone is to sell more of its older and less sophisticated devices, the relative motive of "aspiration" still seems threatened.
This type of dynamics has a fun way to show up in class one day or the other.
At the time of writing, James Brumley did not hold any of the above titles. You can follow him on Twitterat @jbrumley.
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