Back to top

Image: Bigstock

As AAPL Stock Hits All-Time High, Apple Launches Red iPhone, New iPad

Read MoreHide Full Article

Apple Inc. (AAPL - Free Report) opened the day at an all-time high at $142.15 per share with the release of a new color of the iPhone 7, new video app, and new iPad.

New Products

The first product is a special edition Red iPhone 7 and iPhone 7 Plus, from the partnership with the Red project to raise funds to fight AIDS. Apple has previously released other products in support of Red, but this is the first time that the company is pairing Red with its most popular item. Apple recorded 78.3 million iPhones sold in the first quarter of 2017.

The special new iPhone will be available in stores and online starting Friday for a limited time. Apple didn't specify on the timeframe for the Red iPhone and what percentage of the sales will be donated.

Apple also announced a new video app, called Clips. It lets users create a montage of videos, photos, and music with filters, emoji, text, animated titles and narration to be saved to users’ phone or shared directly to Facebook Inc. , Instagram, Snap’s Snapchat (SNAP - Free Report) , Alphabet’s YouTube (GOOGL - Free Report) and Twitter .

Usually, the third product that was released today has a spotlight for itself in Apple's events, but the market proved otherwise.

The tech company updated its most popular-sized iPad with a brighter 9.7-inch display, faster processors, stronger battery performance and a $70 slash in price. Instead of the typical exciting products announcement, Apple introduced their latest iPad with apress release.

It may sound like a surprise to many, but the company’s latest quarterly report showed that iPad sales had dropped for 12 straight quarters, according to CNET.

Despite the declining sales, Apple still leads in the tablet market, though it is a shrinking market. According to International Data Corporation, global shipment for tablets dropped 14.7% year-over-year to 43 million shipped in the third quarter 2016.

Apple's quiet announcement of the new iPad further proves the declining needs of tablets in the market. Initially, tablets were the replacement for desktops and laptops. Today, larger screen smartphones, phablets, and detachable laptops are replacing tablets. While Apple and Samsung Electronic Co. are still dominating the market and coming out with new products, the tablet is losing its charm.

Stock Record

It wasn’t the release of new products that raised Apple’s stock today but the continued anticipation of the new iPhone that brought up the price. With a series of positive analysts reports this week, Bernstein Research analyst Toni Sacconganhi raised Apple’s price target to $160 from $140.

Sacconganhi isn’t the only analyst that raised the price target. Timothy Arcuri from Cowen & Co. also raised his price target to $155 from $135. Investors are betting on the new features of iPhone 8 to attract sales. Zacks sees seven positive estimate revisions for the current year in the last 60 days and six negative revisions.

After opening at an all-time high, Apple closed the day at $139.84 per share with a 1.15% drop.

Apple holds a Zacks Rank #3 (Hold).

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Apple Inc. (AAPL) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Snap Inc. (SNAP) - free report >>