WWDC, Apple’s (AAPL) - Get Free Report developers’ conference, is now in the rearview mirror. CNBC’s Jim Cramer has recently taken the opportunity to weigh in on the Cupertino company and its shares after last week’s software-heavy announcements.
The Apple Maven reviews “Jimmy Chill’s” most recent take on Apple and offers its own opinion on what WWDC has meant for AAPL stock.
Read more from the Apple Maven: Why Goldman Sachs Changed Its Mind On Apple Stock
Apple stock: incremental is good
Jim Cramer seemed more enthusiastic about WWDC than most on Wall Street. In fact, he highlighted one problem with how some analysts interpreted Apple’s announced changes to its operating systems: the idea that incremental improvement is a bad thing. Jim stated:
“When you add incremental, to incremental, to incremental, you get this: [the iPhone,] the best consumer product in the world! The lead widens and the customer satisfaction is greater, and this is what Tim Cook is about. You can call it incremental – but I call it game, set and match.”
The Mad Money host’s observations are in line with how the Apple Maven saw this year’s event. Yes, the announcements were light on new products or services, which may have frustrated some. But the new operating system features serve as important building blocks to Apple’s ecosystem.
This means that “incremental” may not boost Apple stock price in the short term, as much as a new lineup of MacBook Pro computer might have. Instead, Apple’s efforts to make its users’ experience incrementally better is part of the long game that will probably help to increase the value of the company’s equity not immediately, but over time.
Jim offered one last take on the subject of “incremental is good” that I found interesting:
“How many products do you have that regularly have an upgrade that makes them more attractive? The answer to me is none.”
This is a great point that many overlook. Apple is able to make its ecosystem more appealing not only through hardware (e.g. the latest and greatest iPhone), but also software.
When better features are offered to the existing installed base, engagement increases, and so does demand for complementary products – for example, an Apple Watch to go along with the iPhone and its improved Health app. This is probably one of the most underrated parts of the bullish thesis on Apple stock.
Read more from the Apple Maven: Big Tech Antitrust: Will Apple Stock Take A Hit?
WWDC has come and gone, and Apple stock timidly inched higher in the past few days. What do you think is the next catalyst for Apple, positive or negative? Leave your vote below and follow @AppleMaven on Twitter!
Explore more data and graphs
I have been impressed with the breadth and depth of information on markets, stocks and ETFs provided by Stock Rover. Stock Rover helps to set up detailed filters, track custom portfolios and measure their performance relative to a number of benchmarks.
To learn more, check out stockrover.com and get started for as low as $7.99 a month. The premium plus plan that I have will give you access to all the information that goes into my analysis and much more.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)