Consumer electronics giant Apple (AAPL) has its fingers in quite a few pies, and its streaming operations often go unconsidered. But Apple TV+ is still bringing in plenty of interest, and has a noteworthy plan of attack going forward. It likely knows how much of a niche operation it is, both for Apple itself and for the streaming market, and is behaving accordingly. Investors were pleased, though, and sent shares up over 2% in Tuesday afternoon’s trading.
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A recent interview with Apple’s Eddy Cue made it clear, when asked about an ad-supported tier: “I don’t want to say no forever, but there are no plans. If we can stay aggressive with our pricing, it’s better for consumers not to get interrupted with ads.” Though this does make sense, it also leaves Apple TV+ in an odd position: it is one of very few major streamers that do not offer an ad-supported tier.
Apple tends to focus on smaller, more curated operations anyway, so not offering ad support does make a certain sense, given that Apple is unique in the field. And with Apple also staying out of the hunt to buy Warner Bros. Discovery (WBD), it is clear that Apple will continue to deviate from the norm in this sector, for better or worse.
Introducing the iPhone Pocket
“Take a $29 iPod Sock and make it pretentious.” That is the plan for Apple’s new iPhone Pocket, reports noted. The iPhone Pocket is basically what it says on the box: a pocket, connected to a strap, that slings over your shoulder and holds your iPhone.
This makes a certain amount of sense; phones these days are a bit big for most people’s pants pockets, so a means to carry them is reasonable enough. A shoulder holster is a bit weird as form factors go, but still not crazy. The price tag, however, is a whole different matter. A limited edition variety developed with Japanese designer Issey Miyake will run for $229.95 in your choice of three colors.
Is Apple a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 21 Buys, 12 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 20.16% rally in its share price over the past year, the average AAPL price target of $288.55 per share implies 4.92% downside risk.
