Apple (AAPL) on Hold, But Apple Pay Should Change That

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Apple Inc. (AAPL) investors were hoping for big things out of the iPhone 6, as well as the iOS 8 operating system. And they’ve gotten big things … but while sales have been robust and many people continue to suck up these devices, AAPL ran into some problems.

Is_Apple_Pay_Vulnerable_to_Hacking_.jpgIn addition to iOS 8 upgrade glitches, Apple is dealing with what many are referring to as “Bendgate.”

Specifically, users have found that the iPhone 6 Plus can actually become bent if kept in your pocket (or another similar position) for an extended period of time.

So between technical issues and a very physical issue, iPhone mania has slowed to a dull roar in AAPL stock, which has been stuck in a small range above $100 per share for the past month.

When’s the Jump Coming?

AAPL investors have done much better than the market this year, logging 25% gains vs. just 7% for the S&P 500. But it’s safe to guess that many were expecting more after the release of the iPhone 6 and iOS 8.

However, it’s a different Apple unveiling that might eventually make the biggest push.

That something is known as Apple Pay.

Apple Pay is AAPL’s entry into the payments space, taking on the likes of PayPal and Google (GOOG) Wallet. It’s not just exciting technology that should make paying even easier for consumers — it should also be a huge boon to AAPL shares. As we noted last week:

“Susquehanna estimates that every 1% share of U.S. credit or debit card payments grabbed by Apple Pay will add 0.1% to operating earnings at AAPL. … Every 1% share of global purchases made using Apple Pay will boost operating earnings by 0.4%.”

So while there might be disappointment among investors over the launch of the iPhone 6 and iOS 8 not sending AAPL stock over the current price wall, better times still could be ahead.

As of this writing, Chris Bibey did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/apple-aapl-hold-apple-pay-change/.

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