Declining Sales and Revenues have woken Apple Inc. (NASDAQ:AAPL)

Declining Sales and Revenues have woken Apple Inc. (NASDAQ:AAPL)

Declining Sales and Revenues have woken Apple Inc. (NASDAQ:AAPL)

Lagging sales in China, as well as the impact of the tariffs that were caused by U.S.-China trade tensions, have come to haunt the company in more ways than one, as explained in a letter by CEO Tim Cook.

Without a doubt, the company could see even fewer sales going into the coming quarters, which explains why the company wants to focus on its service business.

In truth, Apple has never been known to be a service-oriented tech company like Amazon or Netflix, but it has a service division. Despite not being its primary focus, Apple’s service division generated $10.9 billion in revenue for Q1 2019; about 21% of the company’s total revenue count for the quarter.

STREAMING: A UNIQUE OPPORTUNITY

The most profitable service in this day and age would have to be a streaming service. Music and video streaming have become increasingly popular, with millions around the world being enamored by the prospect of being able to access their favorite documentaries, movies, tracks, and TV shows…. Whenever, wherever.

Streaming is the lifeblood of many businesses, most notably Netflix. The largesse of Netflix is no news; exclusive streaming alone raked in billions for the company. Seeing this, a lot of tech and entertainment companies have now branched out and launched a foray into the streaming business.

IS APPLE READY TO STREAM?

Names like Hulu, Amazon, YouTube, WarnerMedia (through HBO) and much more are deep into streaming, and the herd is only getting larger, thanks to rumors that Disney and Microsoft are planning to gatecrash the party. Well, leave space for Apple as well.

The company is rumored to be in the process of introducing a streaming service later this month, the original product for users of iPads and iPhones. This, in addition to Apple Music and Apple Podcasts, could see Apple launch some serious competition to other big names in the streaming business.

Of course, the question of whether the company will have substantial success with video streaming is still up in the air. Success in that will depend on varying factors, including the prices of its packages, the possibility of shared subscriptions, the content offered, and much more. Apple is also trying to convince some of the more established streaming services to allow them to aggregate their content so its platform can become a one-stop-shop for all things content.

From signing a multimillion-dollar deal with Oprah Winfrey to develop new content to ordering series and rights from La La Land director Damien Chazelle, space drama from Ron Moore and a couple of highly rated children’s shows, including content from the creators of Sesame Street.

One thing that is sure is that Apple has the potential to make it big in the streaming. For one, while its iPhone revenues might be declining in its largest markets, it still has one of the most extensive user base numbers of any tech company, with over 900 million individuals using iOS-based devices.

If Apple can harness its user base and provide services that are strong enough to attract them, then a surge in revenues is inevitable. Achieving this could see Apple tweak its business model, even more, allowing it to accommodate more service-based offerings, while also continuing with the production of its flagship products.

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 173.72.

The projected upper bound is: 187.17.

The projected lower bound is: 164.48.

The projected closing price is: 175.82.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with APPLE INC). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 61.9121. This is not an overbought or oversold reading. The last signal was a sell 16 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 63.85. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 40 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 95. This is not a topping or bottoming area. The last signal was a sell 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.320 at 175.530. Volume was 49% below average (consolidating)(neutral) and Bollinger Bands were 73% narrower than normal.

Open High Low Close Volume___
175.940 176.000 174.540 175.530 19,737,420

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

Moving Averages: 10-period 50-period 200-period
Close: 173.90 162.17 191.01
Volatility: 12 47 38
Volume: 23,033,134 35,207,616 32,615,600

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 8.1% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 26 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH