Apple Inc. (NASDAQ:AAPL) news subscription service, Apple News+, had 200,000 sign-ups for a free trial in the first 48 hours it was available

Apple Inc. (NASDAQ:AAPL) news subscription service, Apple News+, had 200,000 sign-ups for a free trial in the first 48 hours it was available

Apple Inc. (NASDAQ:AAPL) news subscription service, Apple News+, had 200,000 sign-ups for a free trial in the first 48 hours it was available

Apple’s new subscription service for news and magazines, Apple News+, had more than 200,000 people subscribe to a free one-month trial in the first 48 hours it was available, according to The New York Times.

It’s a critical data point to gauge consumer interest in Apple’s new subscription services. Apple News+ is the first of three monthly subscriptions that Apple hopes will transform its business from a hardware maker to a company that makes a substantial amount of money selling services to iPhone users.

The revenue generated at this scale is basically chump change for Apple, which makes most of its money on the iPhone. Plus, given the size of the iPhone user base, the initial wave of sign-ups is still pretty small. On the other hand, the Times says that 200,000 users is more than Texture, the now-defunct app Apple News+ is based on, had during its entire existence.

Apple News+ costs $9.99 per month, or about $120 per year. Assuming that everyone who signed up for the free trial ends up subscribing for an entire year, those 200,000 subs would generate $24 million in sales for the service per year. But Apple would have to pay as much as 50 percent of that revenue back to the publishers that provide content to Apple News, according to the Times.

In addition, there are a certain number of people who have or will cancel before the trial month ends. And Apple certainly has continued to add new trials after the first 48 hours it was available.

Apple Music, a $9.99-per-month streaming music subscription, grew to more than 50 million subscribers in 3½ years, according to a note distributed Tuesday from UBS analyst Timothy Arcuri.

In context
In 2018, Apple services totaled more than $41 billion in revenue, Apple CEO Tim Cook said in January. The company’s services division includes fees from the App Store, subscriptions like Apple Music, and fees to make Google the default search engine on the iPhone.

Cook has implied that he wants the company’s services business to generate $50 billion in revenue by 2020.

Apple had about $265 billion in total revenue in its fiscal 2018, of which about 60% came from iPhone sales.

Apple has about 900 million iPhones in use, the company revealed in January. However, it’s unclear how many of those are from the United States and Canada, the only two regions where Apple News+ is available.

Revenue from subscription services will be bolstered by the other subscription apps that Apple announced last week, including a streaming video service, and a video game bundle. However, both services won’t be released until later this year. Apple hasn’t announced pricing for either of those services.

UBS estimates that the realistic number of iPhones that Apple could sell services to is 500 million to 600 million devices, based on geography. Apple says it has 330 million paid subscriptions, which includes subscriptions to apps distributed through the App Store.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 180.13.

The projected upper bound is: 203.83.

The projected lower bound is: 188.55.

The projected closing price is: 196.19.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.1724. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 71.44. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 146.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.330 at 195.350. Volume was 34% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open High Low Close Volume___
193.250 196.500 193.150 195.350 23,271,830

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 190.94 175.99 190.61
Volatility: 29 28 39
Volume: 33,518,000 28,983,408 33,479,338

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 2.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 47 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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