- Apple shares jumped as much as 2.7% Wednesday, hitting 11-month intraday highs, after the company revealed updated iPhones, Apple Watches, and iPads at its latest fall keynote.
- The company also announced its TV+ streaming service will cost $4.99 per month. The price falls under Disney and Netflix’s subscription services, and the two competitors saw their stock fall on Apple’s pricing reveal.
- Analysts praised Apple’s pricing for the new streaming service, with Wedbush analysts calling the move “a major shot across the bow at the likes of Netflix and Disney.”
- Watch Apple trade live here.
Apple jumped as much as 2.7% on Wednesday following its latest keynote, hitting intraday levels not seen since October 2018.
Though the tech company is relying less on phone sales and more on its services business to lift revenue, the iPhone remains one of its most popular products. Wearable device and accessory revenue has also steadily risen as consumers upgrade their iPhones less frequently.
Here’s everything Apple announced at the Tuesday event:
- iPhone 11 (from $699): featuring a new A13 Bionic chip, two-camera system, and new lavender and green colors
- iPhone 11 Pro and Pro Max (from $999): featuring upgraded displays, three-camera system, improved battery life, and fast-charging adapter
- Apple Watch Series 5 (from $399): featuring an always-on OLED display, increased storage, and built-in compass
- Seventh-generation iPad (from $329): featuring a bigger screen and enclosure made from recycled aluminum
- Apple TV+ (from $4.99 per month)
- Apple Arcade (from $4.99 per month)
Apple TV+ is slated for a November 1 launch, and Apple Arcade will go live September 19. The two new services are tied to a slew of operating system updates set for fall release, including iOS 13, macOS Catalina, and watchOS 6.
Analysts were generally positive toward the Apple’s pricing for its subscription service. UBS analysts praised the company for its bundling of services and hardware, an advantage Apple holds over most other players in the streaming wars. Analysts at Wedbush said Apple could gain as many as 100 million streaming consumers over the next three to four years.
“The pricing of Apple’s streaming TV service at $4.99 per month is a ‘show stopper’ and a major shot across the bow at the likes of Netflix and Disney among others,” Wedbush analyst Daniel Ives said.
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Netflix shares plunged more than 3% in the minutes following the Apple TV+ price reveal. Its most popular subscription costs $13 per month. The streaming giant has seen its stock drop in recent months as investors fear it can’t keep subscriber growth steady among increased competition.
Disney stock dropped more than 2%. It’s Disney Plus service is slated for a November 12 launch and costs $6.99 per month.
The keynote began at 10 a.m. PT Tuesday at Apple Park’s Steve Jobs Theater. Apple has announced new iPhones in the fall for nearly a decade.
Apple shares trade for $220.85 as of 11:25 a.m. ET Tuesday, up about 40% year-to-date.
The tech giant has 23 “buy” ratings, 21 “hold” ratings, and five “sell” ratings from analysts, with a consensus price target of $219.75 per share, according to Bloomberg data.
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