Investors have had a couple of days to digest Apple’s (NASDAQ:AAPL) big announcement. If you own Apple stock, the information provided by Tim Cook and other celebrities such as Oprah probably left you with more questions than answers.

Frustrating. But probably intentional.

Apple wants to create a conversation around its new services and what better way to do that than leave out critical pieces of information such as cost to get people talking. I’d be a rich man if I had a dollar for every analyst or media expert who’s wondered about the price since Monday’s announcement in Cupertino.

It’s going to cost what it’s going to cost. Whining like a two-year-old because you didn’t get answers isn’t going to change that fact. When the information is available, you can evaluate the merits of price, service amenities, etc.

Until then, Apple followers, especially shareholders, will have to be patient.

Apple TV+, Apple News, Apple Arcade, and the Apple Card will all reveal themselves in their finished form at the appropriate time. In the meantime, go about your lives.

Investor Frustration and Apple Stock

I was sarcastic about people getting frustrated over the lack of clarity provided by Apple’s announcement. Analysts have a job to do. Without this critical information, they can’t properly evaluate the company’s future revenue and earnings, analysis they need to pass on to their clients so their clients can make educated decisions about the company’s future.

It’s serious business. People’s financial investments are at stake.

All of that’s true. But in the end, Apple is just as much about marketing and pizazz as it is technology. There’s a method to its madness. In time, we’ll know all of the pertinent details.

Here’s what we do know.

Services and Apple Stock

Apple is doubling down on its services business. It’s betting that Apple customers will flock to these new offerings leaving them more committed than ever to the Apple universe.

I’ve said for a long time that Apple is a service business that happens to sell iPhones, iPads, Air Pods, and other technological devices.

Think about it.

Who is more valuable?

A customer who buys an iPhone once every four years shelling out $1,000 each time or a customer who buys an iPhone once every six years, shelling out a $1,000 for the phone, and another $250 a year in services?

Over 12 years, excluding inflation, the person who buys one phone every four years doles out $3,000 over that time. The person who buys one phone every six years doles out $5,000, 67% more than the person buying more phones.

It might seem difficult to spend $250 in Apple services over 12 months, but that’s only $21 per month. I spend much more than $21 each month on my coffee at Starbucks (NASDAQ:SBUX).

Netflix and Apple Stock

I recently tried a free trial of Barron’s. For one month, I got all their great content for free. I enjoyed reading some of the stories, but when it came time to pay for a real subscription ($19.99 plus tax) I couldn’t pull the trigger despite the fact I write about investments for a living.

Every day, it seems like some media outlet is trying to get me to sign up for their valuable material, and every day I wonder if I’m missing out. I currently have two digital subscriptions, the Globe and Mail and Business Insider, and quite honestly, I’m ready to dump Business Insider because while the monthly fee isn’t a whole lot (I think it’s around $13), it is a bit of information overload.

A friend of mine took a job as CEO for a media company and the first thing I said he should do is to create a Netflix (NASDAQ:NFLX) for news.

Yes, I know, there are plenty of apps like Flipboard around that deliver slightly curated offerings. Apple News is one of them. They’re great for finding investment ideas to write about.

However, when you want to dial down on a subject, they can be woefully inadequate. 

So, here we have Apple News+ jumping into the fray, and while not every media outlet is jumping on board, I could see myself signing up because the monthly cost of $9.99 is reasonable and I’m confident that Apple will deliver enough quality product to make it worthwhile.

What I can’t afford to do is sign up for the Wall Street Journal, Barron’s, Bloomberg, Business Insider, and all the other business publications that are out there. Not necessarily because of the cost but because of the time required to read all of them.

This quote from News Media Canada CEO John Hinds says it all:

“…The premium brands don’t want to be mixed in on Facebook’s newsfeed with a bunch of garbage content. They want to be in this protected, curated, premium Apple environment,,,Apple has an opportunity to do something different and better, so to trip on the terms is unfortunate, because the experience itself is probably going to be pretty great.”

I couldn’t agree more. Apple will make it great.

The Bottom Line on Apple Stock

There’s a lot of uncertainty surrounding all of its latest initiatives. Question marks could last into the fall when Apple launches its original content on its streaming service.

Until then, Apple stock could experience quite a bit of volatility. However, you can be sure that Warren Buffett will be buying on any weakness. For me, Monday’s announcement solidified my belief in Apple and Apple stock.

Be patient and you will be rewarded.

At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.