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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:
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.
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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