Remember all the times experts have exclaimed the age of growth was over for Apple Inc. (NASDAQ:AAPL)? This week, Apple held its annual Worldwide Developer’s Conference and reminded everyone that size isn’t necessarily a hindrance to growth.
In fact, Apple’s smartphone dominance lies the perfect foundation for the company to win tech’s next frontier — something that was quite obvious during WWDC.
Let’s take a look at a few announcements from the event and how they might play for Apple stock.
Apple Upgrades Its Product Mix
At the conference, Apple iOS 11, a new home speaker dubbed “HomePod,” a larger iPad Pro, new iMacs, more refined Watch features and ARKit for developers.
In fact, when Apple releases iOS 11, it will immediately become the largest development platform for AR apps. That’s the incumbency factor I was talking about. Augmented reality is generating hype in the tech world for good reason. While it’s been hyped before, we didn’t have the computer power to support AR and VR like we do now.
And with all the big players — Apple, Facebook Inc (NASDAQ:FB), Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) — in addition to startups honing in on the space, you can bet it’s real.
While some tech bloggers felt the new iMac proved Apple doesn’t know what to do with that product line, I’m excited about the debut, largely because of price point.
Margins are getting tough in the competitive world of smartphones, but this $5,000 “supercomputer,” as many are calling it, could be the perfect big-ticket item for the serious users Apple targeted in its earlier days.
I like having a ubiquitous product like iPhone that continues to innovate mixed with a high-end product (dubbed the most powerful Mac ever) aiming for a more niche, expensive market.