Apple: Buying on Weakness Ahead of 3G

Apple Inc. (AAPL) gapped down to about $187.51 in the opening minutes of trading Friday. In then tried to claw back to the flat line.  Minus the poor jobs report and a sudden explosion in the price of oil, one has to imagine that today’s price action would have looked a lot different. So perhaps this serves as a blessing in disguise for traders to capitalize on the weakness before the herd mentality enters the trade and buys before the news, right of ahead of the anticipated release of the 3G iPhone for instance, and pushes Apple shares higher.

Already consolidating for the past few weeks in a tight range between $180 and $190, a breakout appears to be imminent and a close above $190 is an all clear signal for the inevitable move to $200 - with the obvious catalyst for that to happen undoubtedly remaining next week’s debut of the 3G iPhone at Apple’s Worldwide Developers Conference beginning Monday, June 9. To understand all the fuss over the new iPhone, look at some of the added features it brings; per Silicon Alley Insider, the new iPhone will run on AT&Ts 3G mobile network for quicker web browsing, have 32 GB of storage, higher resolution for the digital camera of 3 megapixels, better battery life and the possibility of integrated GPS and video capability, to name a few.

Comments

[wallawallabingbang]

MAY even have 2-way video-conferencing - the absolute killer application.

Don't forget, Apple makes fine PC's as well.

[Toni]

"a breakout appears to be imminent and a close above $190 is an all clear signal for the inevitable move to $200 - with the obvious catalyst for that to happen undoubtedly remaining next week’s debut of the 3G iPhone"

LOL

[icanpress]

Say goodbye MSFT as well. Ever since Apple made the smart move to run dual operating systems, punters will begin to (finally) believe that they can have the best of both worlds. I have a friend who today, at 45, just bought his first MacBook Pro after swearing he "would never convert". He also owns multiple iPods etc etc; Apple is grabbing the heart, mind and soul of not only the early adopters, aficinados and tech geeks, but the general public is finally cottoning on to what we've known for years - a leading edge, innovative and daring company willing to re-invent itself to stay well ahead of the game. The numbers stack up for me as a $250 high this year, settling back to zone of $220 +/- suppport zone, then over $300 for fiscal '09.

[old guy]

I am 72 years old bought my first Apple computer Jan 1 of this year ...LOVE IT ...just bought 2 ipods 2 wrrks ago....Why did I wait so long?....sooner or later Apple will get you!

[zinkles]

Having the ichat feature on the new 3G phone would rocket the price in a nano second. Just think of how many young people would froth at the mouth to have this. Not to mention the baby boomer generation. This feature would place this smartphone in a different league.

[wallawallabingbang]

Why do you think RIMM has blurted out that it has new phones in the works, with absurdly premature announcements?

Why do you suppose MiSFiT just put out a press release touting the relevance of Windows Mobile?

Do you suppose they fear something immense coming down the tracks?

How else can these announcements be explained?

[mollytjm]

i live near the King of Prussia Mall in Pennslyvania, where one of the first Apple Stores appeared. you go there during the week and the mall is dead... you enter the Apple Store and it's jammed with people playing with the stuff, asking questions (and getting informed answers)...but even better...staff with handheld 'check out registers' are ringing up the sales. the ipod and iphone got them into the store, but EVERYTHING is selling once they're there! it's like you're on a different planet...one where innovation, not Vista, rules. Monday can't come soon enough!

[dig]

indeed msft, rimm, nokia should be very afraid ... aapl is years ahead with what they've done with the osx software stack.

[Constable Odo]

I'm an iPhone fan, but there have been dual-camera handset around for some time. The Nokia, Samsung and Pantech have all had them before and there wasn't much growth in handset videoconferencing. So unless Apple's iChat AV is something really exceptional I don't see why videoconferencing would suddenly be the killer app. I realize that more dual camera iPhones will be sold than probably all three of those other vendors and maybe that will make the difference. I've heard the Chinese have a thing for videoconferencing so maybe they'll help it grow, too. I believe face-to-face social networking could be a lot of fun. I want it to work, but I just wonder if it will be that useful.

.Me should be great for iPhone use, since it'll be able to store a lot of stuff for use on the iPhone (extra movies, music and games).

I hope Apple sells 12 million iPhones by the end of the year and with nearly 70 countries available and possible subsidies, there's almost no way they can fail. Go iPhone.

[Jimmy Goodwin]

Apple will break $200 easily on monday.

[User 206960]

So, now that EVERYONE has finally bought an apple product is there ANYONE left for sales growth. This is the absolute worst time a product could have ever been released. Ever hear of buying the rumor and selling the news? This has been rumored for a while. Now its time to sell. Dont get caught with your pants down.

[Partners in Grime]

Apple is about to post big gains in the enterprise market as well.

[User 186090]

EVERYBODY hasn't bought an Apple product yet, the penetration potential for the iPhone globally is massive, iMacs, MacMinis and MacPros merely have their toe in the desktop market and their growth in the laptop market keeps gaining momentum. Apple has yet to disappoint on their numbers in 5 or so years. People talk about the slowing growth in the Ipod #'s but never add in the iTouch and iPhone #'s Sure, iPods have sold a lot less but those #'s have been made up and more so with the new tech - which are merely iPods on steroids. Apple has been consistantly 2 steps foward, 1 back and that's fine.

[babuchka98]

Be very carefully on Monday-I bet 7:3 that when Steve will start to speak Big Money will start a huge-$8-10 sell-off. After that AAPL will recover.

[fredzh]

I just sold 1/2 of my Apple stock a few weeks ago at $184 believing that I did OK after purchasing it in February for $123 a share. Had I sold everything, the stock would be skyrocketing next week. As it stands, I'm guessing $205 to $215 by the end of June and $250 by the end of the year. Regardless, tomorrow will be interesting.

[nine_yarder]

The real killer app will be micropayments and credit purchases via iPhone. Consumers pay a 4% fee on credit card purchases to the card issuer, collected by the retailer. Apple could charge a flat 1 cent per purchase and make a fortune as a replacement for the credit card. The Apple Store? How about Apple Bank.

[nayr]

My iphone money went into my gas tank.

[adel]

i agree w user206960 and agree w babuchka98 senaryo

[charanischiu]

Still patiently waiting for the exact official launch date of the Apple 3G iPhone from Hutchison in Hong Kong where I had already signed up the waiting list of the first group order.

[mollytjm]

i can't imagine in what universe a person would have to reside in order to think EVERYONE has bought an apple product. it's a big world...apple has just started...they still have the most profitable retail space. and there are A LOT of us waiting for the G3 iphone and the end of other phone contracts...in about 40 countries.

[blah blah blah]

An apple a day keeps the doctor away!!