Apple: IPhone 7 Event Was a DisasterAAPL) for almost a year now and I expect the stock to head back under $100 after yesterday’s iPhone 7 event. For me, the event was very underwhelming, and it highlighted the fact that Apple is running out of ideas. In fact, Apple is so out of ideas that the only innovation it could offer was wireless headphones, which, in my opinion, look terrible.
Not only will the consumers have to buy the AirPods, but they are ridiculously expensive at $159 a set. Moreover, given the small size of the AirPods, I am quite sure that many consumers will probably misplace it, which won’t be nice considering the price point.
All the features of the iPhone 7 were known way before the official launch and, as I have said before, there is no significant upgrade that can make consumers go "Wow", which is why I don’t expect many users to upgrade their existing iPhones.
Moving on to other products, Apple launched the Apple Watch 2, and I still can’t wait to not buy it.
I believe that similar to GoPro’s (GPRO) action camera, smartwatches are a fad and most people who want a smart watch probably have it by now (the launch doesn’t look good for Fitbit however).
The smartphone boom is over and Apple is desperately looking at other growth avenues, however, I am pretty sure the Apple Watch will not be the device to drive its growth in the future.
Image by JESHOOTS / Pixabay
All in all, Apple’s event was very underwhelming. The wireless headphones and removal of the headphone jack will complicate the device for a normal consumer, which goes against the conventional Apple ideology.
I have said it before and I’ll say it again, iPhone sales peaked with the iPhone 6 and all its foreseeable successors will likely underperform. Given that there are no new significant features in the iPhone 7, I expect it to perform poorer than the iPhone 6S.
As a result of this, I expect Apple’s sales to drop considerably and I will not be surprised to see the stock under $100 in the coming months. Investors may be happy with the event for now, but another year of declining sales will change their minds. As a result, I am recommending investors short Apple for the first time.
Disclosure: No position
Published on Sep 8, 2016By Ayush Singh