After several months of poor returns, Apple’s stock just cracked the $200 per share mark. The number isn’t the highest one for the tech company, but investors welcome the comeback after a drop to the $160 range. The management of Apple is undoubtedly thrilled as well considering the jump in price represents positive revenue returns.
The recent stock jump represents a rally the company hasn’t experienced since October of 2010. Apple can now boast of 10 straight days of gains — quite an accomplishment for the previously flagging company.
The stock price increase followed the notorious March 25 flop announcement of three heavily hyped subscription services. The three services include gaming, television, and magazine offerings. The public delivered a lukewarm reaction, so the announcement didn’t move the needle on the stock price, though. Likely, some panic set in at Apple headquarters when the ballyhooed subscription services weren’t welcomed with enthusiasm. Thankfully for Apple, the company has other assets capable of generating revenue.
According to CNBC, although interest in Apple’s new services did not explode upon the first announcement, the subscription ventures could turn out to become wildly successful in time. With such a crowded streaming and news marketplace, Apple must show what it can do before seeing consumers react positively.
With its recent rallies, Apple now opts to turn attention towards its flagship product: the smartphone. Sales of smartphones declined, and this contributed to a decline in the company’s stock. Smartphone sales never reached dismal levels, but they were lower than preferred.
Perhaps a lack of attention caused some of the smartphone’s troubles. Apple veered away from developing brilliant new iPhone innovations and released dull upgrades instead. Customers passed. By putting focus back on iPhone sales and development, Apple may be able to course correct. If it does so, the company will likely continue to see positive stock news.
Dil Bole Oberoi
