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Apple is set to introduce its newest budget iPhone SE. However, today in the pre-market, AAPL stock wasn’t rising as it could have been expected.
Apple Inc (NASDAQ: AAPL) stock price is down by about 0.58% in the pre-market today. The stock of the technology giant has faced increased pressure in recent times due to the COVID-19 situation. The closing prices are positive. The closing prices closed by 1.67% to $244.93.
So, it could be a battle between the bulls and the bears. Sources say the reason for the optimism has to do with the introduction of Apple’s entry-level iPhone SE.
Apple (AAPL) Stock Could Rise Thanks to New Budget iPhone SE
This new iPhone is targetted at users who want to own an iPhone but can’t do so due to the expensive price tag of the device. That is about to change.
Rumor has it that the new iPhone is going to be priced at around $399 and above. This will come as good news for Apple fans. Sources say that orders for the new iPhone could start as early as Friday. The company could be opening up orders for the new iPhone on its website by then.
The new iPhone is sharing the same name with a 2016 version. The Cupertino California giant wants to refer to this one as the 2020 version of the same name.
Apple is yet to re-open its retail stores outside China. It is also hosting its annual developer conference online. This is a first one for the technology company. The launch of its 5G phone may be delayed due to lingering COVID-19 concerns.
Many have considered the possibility of Apple (AAPL) stock price returning to its glory days. This may be a great time to buy Apple stock.
Innovation Is the Masterkey
Such people are counting on Apple’s ability to innovate as the premium factor driving the company’s growth.
Apple demonstrated this recently by allowing its engineers to work from home. The company has been known to be notoriously secretive about its projects. COVID-19 brought presented an obstacle that many thought that Apple could not overcome.
The company made a turnaround as new work-at-home policies were introduced. Limitations may exist to the kinds of work that can be done from home. This doesn’t mean that the company isn’t making lemonade out of the lemons thrown at it by COVID-19.
Apple is still working to reportedly launch new products this year. Sources say that a new Homepod and Apple watch are expected alongside smartphones.
This will be a welcome addition to Apples’ big family of products. Apple TV is also expected to be upgraded this year as well.
Apple’s services division hasn’t been affected negatively by the COVID-19 situation. The movement restrictions have caused a rise in the adoption of services. Apple’s services division isn’t exempted from this rise.
1.5 billion (and counting) devices are enough to drive this growth. Others think that for now, Apple’s stock still has to face some challenges. COVID-19 could be mostly to blame.
Apple, like other technology giants, is facing a challenge with their global demand. As a result, they cut down on their supply chains as well. The 5G delay is another issue. Apple may have to wait till 2021 to introduce a 5G phone due to the coronavirus situation.
There Is a Silver Lining in the Storm Clouds
The global economy is experiencing a downturn. The U.S. alone already has a record of 6.6 million jobless claims in a week.
This is hurting Apple’s primary market. Many expect that the COVID-19 effect is temporary and that the global economy will bounce back though. Technology companies like Apple this time may take the lead.