AAPL Stock Drops Following Keynote Event & iPhone X Unveiling
Millions of Apple fans tuned in from around the world for today’s much hyped and anticipated keynote event, hosted at the brand-new, $5 billion Steve Jobs Theater in Cupertino, CA. Rumors of a completely renewed design, which included the removal of the home button, as well as the introduction of an edge-to-edge 5.8-inch OLED screen, were confirmed as Apple unveiled the newest model of their flagship product, the iPhone X. AAPL stock had volatile intraday price swings and was very reactive to the event.
Although the stock originally moved higher as the event was taking place, from a low of $161.15 at the start of the event (10 AM PST) to an intraday high of $163.96, the stock proceeded to sell off to the low of $158.77 before ultimately closing at $160.85.
Apple showcased upgraded models of various products at today’s event, such as the new Apple Watch Series 3, which now introduces built in 4G SIM so you can send messages, answer calls, and stream music without depending on your iPhone. Apple also announced the iPhone 8 and iPhone 8 Plus, which will have improved speakers, cameras, and displays. The upgraded models will introduce a more powerful processor, a glass backing that will allow for wireless charging, as well as other minor improvements.
Unarguably, the moment everyone was waiting for was the unveiling of the rumored iPhone X, pronounced “iPhone ten.” Tim Cook retook the stage and uttered the iconic words of Steve Jobs, “one more thing,” to introduce the 10th anniversary edition of the iPhone, a product that dramatically revolutionized our world in significant ways.
Cook described the phone to be “the biggest leap forward since the original iPhone.” Among various features of the new iPhone X is the introduction of facial recognition technology that will allow you to unlock your phone using Face ID. It is also what’s powering Apple’s deep push into augmented reality, which is the technology behind the incredibly popular facial filters introduced by Snapchat and Instagram. The iPhone X is priced at a premium of $999, and shipments will begin on November 3.
CUPERTINO, USA – 17 August 2017: Apple iPhone 8 3D Illustration with Apple Inc logo Illustrative Editorial Image
AAPL stock began trading higher on increased volume as the event began at 10 AM PST. Although the price originally rallied higher, the stock ultimately sold off on the event. The selloff in the stock may be attributed to the lack of any real surprises in the keynote. As the market began to realize that the keynote did not disclose any news that was not already leaked prior to the event, sellers quickly took the opportunity to exit their positions, which may have led the stock to move lower on what was an otherwise positive event for AAPL.
This trading phenomenon is commonly referred to as “buy the rumor, sell the news.” Traders will often buy a stock when good news is expected to be released, and sell the stock when the news is confirmed. News catalysts, such as Apple’s keynote and iPhone X unveiling event, can provide significant trading opportunities in stocks.