This week the stock market remained neutral. Monday, Sept. 14th and Tuesday, Sept. 15th were up-days, however the rest of the week remained flat.
The big story of the week was Apple, Inc.’s (AAPL) annual product event.
The company unveiled several new gadgets, including an all-new iPad Air, debuting Apple’s most powerful chip ever made, the A14 Bionic.
However, here’s what will move the needle for Wealthy Investors: Their new services bundle, Apple One.
This bundle comes in three tiers, starting at $14.95 a month. Each tier will include Apple Music, Apple TV+, Apple Arcade and iCloud storage. As typical with Apple plans, the slim amount of iCloud storage in the smaller plans essentially forces power users to go with the Premier option.
It’s this service revenue that will drive Apple’s stock price up over time. During Covid 19 and other economic pullbacks Apple hardware has lagged in sales, but it's monthly subscription services including iCloud and Apple Music have consistently fed top-line revenue growth.
The price increases in the service sector will greatly benefit shareholders.
If you are a shareholder be patient with today’s price action. 52 weeks from now this stock price will be higher.
Tyrone Jackson
The Wealthy Investor
