WWDC, Apple (AAPL) – Download Apple Inc. (AAPL) report programming conference, is now in the rearview mirror. CNBC’s Jim Cramer recently took the opportunity to reflect on the Cupertino-based company and its stock following last week’s software announcements.
Apple Maven reviews Jimmy Chill’s latest performance about Apple and offers its own opinion on what the WWDC meant for AAPL shares.
Read more from Apple Maven: Why Goldman Sachs changed its mind on Apple stocks
Apple Stocks: Incrementally Good
Jim Cramer seemed to be delighted with WWDC from most on Wall Street. In fact, he pointed out one problem in the way some analysts interpreted Apple’s announced changes in its operating systems: the idea that gradual improvement is a bad thing. Jim said:
“When you add incremental, incremental, incremental, you get this: [the iPhone,] the best consumer product in the world! The flagship is expanding and customer satisfaction is higher, and Tim Cook is talking about that. You can call it incremental – but I call it a game, set and match. “
The hosts’ observations of Mad Money are in line with the way Apple Maven saw this year’s event. Yes, the announcements were light about new products or services, which could be frustrating for some. But new operating system features serve as important building blocks of Apple’s ecosystem.
This means that “incremental” may not increase the price of Apple shares in the short term, as much as the new line of MacBook Pro computers could have. Instead, Apple’s efforts to improve the user experience are gradually part of a long-running game that is likely to help increase the value of the company’s capital not immediately, but over time.
Jim offered one last review on the topic of “incremental is good” which I found interesting:
“How many products do you have that regularly have an upgrade that makes them more attractive? My answer is no. “
This is a great point that many ignore. Apple can make its ecosystem more attractive not only through hardware (e.g. the latest and largest iPhone), but also software.
When better features are offered to an existing installed database, engagement increases, and so does the demand for complementary products – for example, the Apple Watch that goes with the iPhone and its enhanced Health app. This is probably one of the most prized parts of the bull thesis about Apple shares.
Read more from Apple Maven: Big Tech Antitrust: Will Apple stock hit?
The WWDC has come and gone, and Apple shares have risen timidly in recent days. What do you think the next catalyst for Apple is, positive or negative? Leave your vote below and follow @AppleMaven on Twitter!
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(Disclaimer: This is not investment advice. The author may have one or more shares listed in this report. The article may also contain affiliate links. These partnerships do not affect editorial content. Thanks to Apple Maven for support)
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