Apple Inc. (NASDAQ:AAPL) stock has been riding the “iPhone 7” wave since last month. After being lackluster for a while, Apple stock gained substantially on reports that demand for iPhone 7 was higher than expected.
So what can be expected from AAPL stock now that Alphabet Inc (NASDAQ:GOOG) is all set to unveil its new smartphones today?
Alphabet Inc, otherwise known as Google, shall launch its new smartphones on Tuesday, together with other impressive gadgets. There is lot of excitement surrounding Google’s “Pixel” smartphone. The Pixel smartphone is expected to cost more than $600.00, pitching it directly against Apple iPhones. (Source: “Google expected to unveil new phones at San Francisco event,” Reuters, October 4, 2016.)
However, the most important factor in favor of Apple Inc is its strong distribution network, an area which is clearly not Google’s strength. Hence, it would be interesting to see what plans Google has to overcome this challenge. In the meantime, Apple Inc shall continue to remain the market leader as its iPhone juggernaut continues to roll and keep pushing AAPL stock higher.
There were a couple of bullish reports on Apple stock from analysts on Monday. Piper Jaffray Companies (NYSE:PJC) analyst Gene Munster reiterated an “overweight” rating on Apple stock, with a price target of $151.00. He is upbeat about the future as the supply constraints of iPhone 7 models in Q4 will help improve the results of fiscal Q1. Pacific Crest Securities analyst Andy Hargreaves—who also has an “overweight” rating on AAPL stock, with a $121.00 price target—finds it encouraging that the models are out of stock on the back of high demand. (Source: “Apple: Great News, iPhone 7 Stocked Out, Say Piper, Pac Crest,” Barron’s, October 3, 2016.)
As the battle heats up between the two tech giants, the boundaries between hardware and software seem to blur. Google is launching new hardware that incorporates its “Google Assistant.” Apple has just launched “EnterpriseNext” with Deloitte to bring more businesses into the fold of its ecosystem.
It’s all about software and services in this battle for market growth. The technology giants are focusing on bringing more and more users to their platforms as they realize the potential of services. However, as investors and analysts continue checking the figures at the retail outlets, Apple Inc appears to have the edge. And this is likely to keep Apple stock buoyant for a long time.