Apple investors continue to focus on underwhelming product launch
Apple’s share price remains under pressure as investors continue to focus on the disappointing product launch of the tech giants new streaming TV and credit card services. Apple Inc had received a brief respite, as US equity markets advanced on reports that China is considering increasing its pork imports from the United States, however, Apple’s share price continued to decline into the closing bell.
Investors had been left feeling underwhelmed at the start of the trading week as Apple unveiled the latest details about its newest products, most of which had already been known to most investors prior to the event. Apple failed to mention crucial details about its new TV service, including how much the new Apple TV+ subscription service would cost and the companies future content plans and investment budget.
The new Apple Credit Card was possibly the most impressive new product, although some analysts remained unimpressed with the overall advantages of the card that CEO Tim Cook called ‘A game changer’. Apple reiterated on Monday that the card offers long-time Apple users an easy way to purchase Apple goods, whilst offering no late fees, cash-back rewards, and added security. The Apple Credit Card is set to be launched this summer in a partnership with Mastercard and investment bank Goldman Sachs.
Apple also unveiled a new subscription gaming service, with the tech giant once again offering few details about the costs and also an Apple news service. The news service will be priced at $9.99 per month, with the tech giant stating that its news service would include special content from The Wall Street Journal.
The lack of details towards product pricing and future content ultimately left investors confused on how to incorporate the new product offerings into Apple Inc share price valuation. Amazon and Netflix shares received a boost after the product launch, as investors were confident that Apple TV+ would likely be unable to draw customers away from these established streaming TV content heavyweights.
Apple Inc Daily Mountain Chart | Source: ActivTrader
Technically, Apple Inc is sitting at a critical juncture, with the daily time frame chart showing the stock trading in a narrow range below its 200-day moving average but just above the neckline of an ascending triangle pattern. Key support below the triangle pattern is found at the $175.00 and $162.00 levels, while key resistance is now located at the $195.00 and $210.00 levels.
Written by Nathan Batchelor, External Analyst
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