Apple Stock Is Rising Because the Latest Big News Was More Exciting Than Expected
Apple reclaimed its status as a trillion-dollar company on Wednesday, hitting that level for the first time since last November on the day after it showed off its next iPhones.
Apple AAPL, introduced its new lineup of iPhones and revealed pricing details for its forthcoming gaming and video subscription offerings on Tuesday. Though there were few product surprises in Apple’s latest announcements and the company’s approach to pricing was unexpected and indicated a change in strategy.
Apple shares gained 3.2% on Wednesday, giving it a market capitalization of $1.01 trillion. Apple shares have climbed 40% so far this year.
Apple is giving away a year of the service for free if users buy a new device, which Long expects will help the company amass a sizable base of subscribers at the outset, but at the expense of margins.
The $4.99 monthly cost of Apple TV+ starts a price war with Netflix and others: “Apple’s balance sheet won’t lose this war, but Netflix might.”