As Apple’s (AAPL) Worldwide Developer Conference (WWDC) approaches, investors are focusing on the tech giant’s new offerings, with particular emphasis on advancements in artificial intelligence (AI). Bokeh Capital Partners Chief Investment Officer Kim Forrest joins Catalysts to share her perspectives on this highly anticipated event.
Forrest considers Apple the “go-to device” in the developed world. But he points out Apple’s need to constantly innovate to encourage consumers to upgrade its products: “It has to be fresh, new and cool.” Forrest notes that despite the rising costs of Apple devices, there is a pullback among individuals to part ways with existing products.
“What I think Wall Street really wants to see are compelling reasons why someone would trade in a perfectly good phone for this new AI-powered Apple one. [product],” Forrest tells Yahoo Finance.
For more expert insights and the latest market moves, watch this entire episode of Catalysts by clicking here.
This article was written by: Angel Smith
video transcript
Again.
Let’s stick with Apple because many investors were watching Apple’s worldwide developers conference and were expecting an I announcement as a catalyst for the stock, which would increase competition in China.
The decline in demand, along with patent and regulatory struggles, has actually put pressure on stocks in recent months.
The stock is currently just above a yearly flatline, lagging far behind most of its big tech peers.
So should investors be, considering they’re positioning themselves in Apple by focusing on this upcoming announcement?
To answer this question further.
We want to bring Kim to us.
She’s Kim, the founder and chief investment officer of Boca Capital Partners.
It’s great to see you again.
What we have in mind, based on what Dan told us, is that we’ll be hearing from Apple if they announce some sort of initiative on the AI front, which almost seems like a sure thing at this point, how big is it? Will this be a catalyst for stocks?
Certainly.
I mean, that’s really what investors have to decide.
I think for the developed world and the richest people in this developed world.
Apple is the best device to keep you connected to everything.
And to get people to spend over $1,000 for a new iPhone, it has to be new, new, and great.
And with each release, they get more expensive and people stick with them longer.
That’s the problem.
After all, even though Apple sells services, it also sells hardware.
I think what Wall Street really wants to see are compelling reasons for someone to trade in a perfectly good phone for this new A. You know, I think that’s what the driver is like at Apple.
And if you think that’s going to happen, maybe you should buy shares if you don’t already have them.
Who, as you just said, that’s the real question, right?
I mean and hit it.
I’m rushing to upgrade our phones early because of a souped-up emoji.
I don’t know exactly if we’re right.
So what are you looking at inside the apple?
It’s one of those names where you put a lot of personal data when talking about it.
So what do you look for in your formulations?
To introduce the possibility that this could actually bring more demand to Apple?
Certainly.
I think we all have an idea of what the perfect device we want to use is.
Most of the time we talk to it and it talks to us and gives us answers.
And Siri has really pushed that boundary further than anyone else’s, especially considering it’s on a phone in your pocket.
Imagine this.
But I think for this new version of Siri to be truly meaningful, it will need to work with apps on everyone else’s apps, not just Apple apps.
That’s why they’re bringing this out today at the worldwide development conference, to get developers excited about using Siri and to make sure the end customer has a truly, let’s say it, magical experience. pick something out of the air, you know?
Hey Siri, where should I eat lunch and can you order that lunch for me when it comes to what Apple has done in the past and just using history as a guide?
Some of the concerns about Apple stock and the fact that they’re late to the game when it comes to me are some of the concerns that are overblown at this point.
And I guess to what extent do you really see where Apple is trading right now?
A real buying opportunity.
Certainly.
I wouldn’t say it’s quite affordable, but it’s certainly picked up since the beginning of this year.
And yes, as far as Apple was concerned, not having those two letters circulating was a huge punishment; This was a situation earlier this year when I liked everything that enabled I.
Or maybe it just happened in the last few years.
Artificial intelligence as a buzzword is growing in importance.
I think that’s why they were punished.
I can tell it has some real problems. You mentioned this in the introduction to this article about China.
China has caused great damage to this company.
It might get a little political with tariffs and all that coming down.
But some of these, to be honest, were just better homegrown and probably cheaper options than Apple.
That being said, Apple is really good at consumer experience.
So if you’re going to be a long-term holder, which we are, our typical holding periods are 3 to 5 years.
Looking to the future, I think Apple has a good runway ahead of it.
And maybe during the sell, you should add some shares or initiate a position if you don’t have the box.
This brings me to this: our tech reporter on the ground expressed what I thought was too AP. He said today they may be giving Wall Street what they want, but not consumers.
So I’m curious about your perspective.
If Apple can please Wall Street but not consumers today, how big of a risk is that?
I think that’s the whole point of today, because consumers aren’t following the worldwide developer conference, right?
Geek Appaloosa for Apple Developers, that’s a good thing, okay?
I mean, I’m making light of this, but it’s Wall Street driven, but it’s actually for developers, it gets them excited about putting their company’s money and time and effort into building more of their platform than Apple.
That’s a AAA, whole, whole deal, Apple’s whole focus.
And developers Tell me more, why should I take part in your ecosystem?
So I think it would be a perfect thing.
Even if consumers relax on this issue, what they really want to see will probably be 3 to 4 months later.
You know, a new product, a new iPhone, it enables some of that and it’s exciting for customers.