13.09 - Apple didn't live up to the hype
News on the new talks between the United States and China is overshadowed by the presentation of the new iPhone.
Oh, no. here we go again. Right now it seems that all markets and its main participants do is give false hope to us traders without actually making any decisions and changes in policies. But that brings much more harm to the situation than good. With every new step and every new stage in the negotiations we lose grip on the situation and start understand less and less. Right now our understanding of a full situation is possible, although only in case if you were watching the situation with us from its very beginning, but three or four more negotiation rounds, and we are going to start losing the notion of what is happening.
Right now it seems that once again the Chinese are willing to try and fix the situation with the United States and go into another round of the negotiation. But the previous rounds brought nothing but false hopes and failure to the countries that participate and traders who watch. And although all of the problems seem to go from the White House, officials there do no deny the possibility of the new meetings. But why would the Chinese go through that again?
Right now talking to president Trump seems like a very odd idea, given that he doesn’t really listen to anyone. So, fir China to keep looking for an ally in the United States rather than go to other hurt countries seem very counter-productive. Could it be that Chinese understand their role in the world, unlike Trump? That is the possibility. But they also understand that tariffs are going to make prices for their goods surge and make less affordable for the consumers who count on their goods and low prices for them. Well, that seems very thoughtful for the Chinese to do that.
But will the negotiations be successful this time? We doubt that. With Trump as determined to weaken all of the previous allies of the Unites States he is not going to agree to any terms, so we simply have to wait until someone changes him in the Oval office.
So why make negotiations right now? Well, eve the talks of them have boosted the performance of Asian indices and stocks. Imagine what could happen in case the talks really go through with success?
Last night a highly anticipated iPhone presentation tool place in California. And all we wanted to see is whether this new presentation can help Apple shares surge higher. But at this point we can clearly see that three new models of iPhones were not the thing that the stock needed for boosting.
With the largest ever iPhone introduced trading world froze to see whether the shares are going to get the largest boost ever with traders believing in the future success of the new models of the new smartphones. But no. That wasn’t the case at all. with prices for the phones revealed as well it seems that just like iPhone X a year ago, new models are going to be deemed too expensive to buy for the customers especially in the conditions of the current economy.
it looks like trends of producers and consumers go in two absolute different directions. Prices for everything grows as the companies are trying to prepare themselves for the possible trade war and save as much assets for the rainy day as possible, consumers start to drop unnecessary purchases and are also trying to prepare for the upcoming crisis. And although that is not yet a widely spread trend it is possible that it should go global, in case the next round of American-Chinese talks fails.
And Apple is a perfect example of these trends going in the different directions. Although 3 new models were presented with the price tags of $1099. $999 and $749 it seems that traders do not believe in the successful sales if any of these models. After all the stocks lost $1.24 percent right after the presentation and right now the fall is still ongoing with no recovery in sight at least for today.
Of course, there is no doubt that each of the new models is going to find their consumers, but will that auditorium be as big as for the models before iPhone X? We don’t think so. Plus, such giants as Samsung and Xiaomi are very close to Apple with Samsung being the most popular smartphone in the world.
All and all we saw that Apple didn’t really learn anything from the failed iPhone Z sales. They still prefer to issue something that is as expensive as their new models. What can save Apple? We would say something inside the budget frames. Something that would appeal and be affordable for more consumers. Only in that case the company will be able to safe their trillion-dollar status. Without it people are going to be tired of the high prices in several years which could lead to the collapse of the biggest company in the world.
- by Anna K.