Live From The Steve Jobs Theatre

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What's going on?

Apple, the worlds most valuable company, held an event on Tuesday to announce new models for its range of products, including the iPhone X, its most expensive iPhone yet.

What does this mean?

The iPhone has had a strong decade since it was first launched, with over one billion units sold. Now, it generates 55% of Apples revenue, but there has been little growth in sales in the last two years. Wall Street is counting on the 10th anniversary iPhone to introduce some renewed growth to sales. Apple is intending to grow sales partly by charging more for its most premium model, the new iPhone X, which will start at $999 but the higher price will test its customers loyalty.

Why should I care?

For the stock: Apple stock has had an exceptional year so far.

The new iPhone wont be ready to go on sale until November, later than the usual late-September date when they have gone on sale in the past. The delayed release appeared to be a short-term disappointment, and the stock price sold off about 1% immediately after that news was released. But taking a step back, Apple is one of the best-performing stocks so far this year. Its shares have rallied 39% since January (significantly better than US stocks overall, which are up about 11%).

The bigger picture: Theres more to Apple than just the iPhone. (tweet this)

Whether or not the more expensive iPhone resonates with customers is unlikely to be the only determinant of Apples fate. In the event today, its CEO said the Apple Watch is now the best-selling watch in the world and that its sales grew 50% compared to the previous year. More broadly, revenue in Apples Other Products (which includes the Apple Watch as well as Apple TV and several other products) and Services categories grew above 20% compared to the previous year an exceptional growth rate. Together these categories make up 12% of Apples revenues, a proportion that is likely to grow and help drive Apples overall revenue growth.

Originally posted as part of the Finimize daily email.

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