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A trader's view on Apple, its shares and its future
Apple has just launched two new handsets; the iPhone 5C which is aimed at emerging markets, and the upmarket 5S, which has a fingerprint reader. The initial market reaction was not overwhelming, Apple shares closed down 2.3% at USD 494.64, but trader, Serge Berger thinks that this will turn around.
He says that Apple has stayed true to its core and that its “budget” version may not be as cheap as some had predicted, but it remains a premium priced product, especially for China. The iPhone 5C costs USD 99 on a two-year contract, or USD 736 as a one-off payment.
Apple hopes to win over Chinese consumers, as it has been losing ground to the likes of Samsung Electronics there. But whilst the plastic model may be a smart move, many worry that at just USD 100 below the 5S, the cheaper iPhone will begin drawing buyers away from the premium gadget.
On a technical level, Serge says that Apple broke out of a "bull flag formation" this week. The bottom of this formation is around the USD 485 area, and should this level break upon a negative, the next area of support is in the USD 475-480 area.
Apple stock has gained more than 11 percent over the past month, in a typical rally ahead of a big product launch.
Investors now hope a bigger emerging-market presence can help reverse a 29 percent fall in the company's share price since it hit a record high of USD 702.10 a year ago.
Read more about Serge’s predictions here:
http://www.tradingfloor.com/posts/apples-iphone-getting-bed-china-1965665606
01:30 minutes
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