Apple Announces a Slew of New Technology, Buoying Their Stock Price

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In the third week of October, Apple announced another group of new products that it plans to bring to the market as soon as early November.

The announcement by Apple was the second this fall to bring new hardware and software to the market.

Apple reported releasing two new MacBook Pros, New AirPods, New HomePod Minis in different colors, and two new processors: the M1 Pro and the M1 Max.

These new products are on top of the new iPhone and Apple Watches Apple brought to market in September. Share trading of Apple has been positive ahead of its earnings release.

Historically, the month of October has been the best month of the year for Apple shares.  Some of the sideways price action has been a function of the supply chain that many analysts believe is slower than normal, which will impede Apple’s ability to get consumers their products.

The introduction of their new chip should help improve Apple’s ability to deliver products.

Apple reported releasing two new MacBook Pros, New AirPods, New HomePod Minis in different colors, and two new processors

What Products are New?

Apple continued to work its magic in the accessories sector. Its hardware accessories include their new AirPods, which are designed similar to the AirPod Pros but do not have the rubber tip at the end.

These new entry-level AirPods provide spatial audio as well as a one-touch setup. They are sweat and water-resistant, which allows customers to use them when they are working out.

The battery life is now up to six hours and up to 30 hours when placed in the charging case. Other accessories that Apple announced include a new smart speaker called the HomePod Mini. This product is a Bluetooth device that comes in multiple colors.

Apple also introduced a 14-inch MacBook Pro and a 16-inch model. The new models have ProMotion screens with high refresh rates, similar to the screens available with the new iPhone 13 launched earlier in the fall. The smaller MacBook weighs 3.5 pounds compared to the larger screen that weighs 4.7 pounds.

The new MacBook Pros use Apple M1 Pro and M1 Max chips, which the company says are faster than Intel chips. Each of the new models has an HDMI port that will allow consumers to connect their MacBook Pros to their televisions or larger screens.

The M1 Max chip is a more powerful chip than the earlier version of the M1 and M1 pro. The new chip has 57-billion transistors and a 32 core graphics processor.

Chips are Important

The newly introduced chips play a significant role in Apple’s ability to offer products that might not experience similar supply chain disruption issues that other consumer products are currently experiencing.

In 2020 Apple introduced the M1 chip and told consumers that these new chips would be used in computers and iPhones. The M1 chips have 16 billion transistors and compete directly with Intel and AMD but are only used in Apple products.

Apple used Taiwan Semiconductor’s 5 nanometer technology to create their new chips, the most advanced technology currently used worldwide.

Apple’s Price Action

The price action on Apple share trading has been beneficial ahead of their earnings release on October 28, 2021. The share price has recently recaptured key resistance near the 50 day moving average at $147.

Apple peaked in early September for 2021 at $157.5 and then tumbled nearly $20 per share or 12%, putting the share trading in correction territory. Year-to-date, Apple share trading is up approximately 12%.

Seasonally, Apple generally outperforms in October. Over the past 20 years, the stock price has increased in October 80% of the time for an average gain of 7.1%. November has been a less favorable month for Apple share trading.

The stock price has increased 55% over the past 20 years, rising by an average of 3.5%.  You can see in the seasonal chart that October has historically been the best month of the year for Apple. That is likely because they produce the best earnings following the release of their new products.

The Bottom Line

The upshot is that Apple introduced several new products this fall, including the introduction of the iPhone 13 and the new features that came with it. On October 18, Apple introduced its new MacBook Pro, new AirPods, and the new M1 Max Pro Chip used in the MacBook Pro.

The products have helped the stock gain traction ahead of its earnings release on October 28, 2021. Apple generally outperforms in October.

Seasonally, the stock increases the most in October, rising 80% of the time over the past 20 years.

The beginning of Q4 has been kind to the stock price historically, making share trading an interesting prospect during this period.

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