Apple Inc (NASDAQ:AAPL) Stock Movers: IDC Smartphone Forecast, Apple TV and CarPlay
By Reissa Su | March 4, 2014 7:19 PM EST
Apple Inc shares are expected to be bullish following the latest IDC smartphone forecasts. According to IDC, smartphone shipments will experience slow growth with shipments in 2014 predicted to be 1.2 billion units which is 20 per cent higher than 2013 shipments.
A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013.
IDC also forecasted smartphone growth will be less than 12 per cent through 2018. The IDC forecast is consistent with some analysts' predictions as the smartphone market matures. Apple Inc's iPhone sales will increased to 179.9 million units in 2014 which is a 20 per cent gain compared to figures in 2013.
The IDC forecast is a significant one because the firm has assumed a scenario in which Apple Inc share losses are over. Based on the IDC forecast, Apple Inc will keep its 50 per cent market share in the premium segment. In 2013, Apple's premium segment shipped 300 million units with a 50 per cent share.
Apple TV soon to change the living room experience
In the recently concluded Apple annual shareholders meeting, CEO Tim Cook revealed that the company has sold more than $1 billion worth of Apple TV set-top boxes in 2013. The iPhone maker is currently investing in its new products as told to Apple's shareholders.
In the annual meeting, Mr Cook revealed it that Apple is working on "some things that are extensions of things you can see and some that you can't see." This statement may be somewhat reassuring to Apple Inc investors who have long been waiting for the company to release innovative products including the rumoured Apple TV which is touted to disrupt the living room experience in every home.
As usual, Mr Cook declined to comment when asked about specific details regarding Apple's new products still in development.
On Feb 28, Apple Inc shares fell 0.27 per cent at $526.24. The chief executive of Apple steered clear of any discussion on stocks as he talked more about the company's Apple TV business. Mr Cook shared that Apple TV is no longer a hobby as observers have described it.
Mr Cook declared to Apple's shareholders that they should not focus on short-term gains but rather on the long-term rewards as the company intends to stay "for the long term."
Apple banks on CarPlay
CarPlay is Apple's attempt to give iPhone owners safer access to their devices while driving. The company has developed a new technology which it called CatPlay to allow users to connect their iPhones to the vehicle's dashboard technology.
CarPlay will be featured in different auto makers like BMW, Ford and General Motors. Apple's new technology was unveiled at the Geneva International Motor Show last March 3. iPhone users can now make calls, send text messages, play music and access Apple Maps using voice commands to Siri or the car's touchscreen dashboard.
Apple investors may have just gotten what they wanted with the newly-released CarPlay. Investors have called on the tech giant to innovate and not just refresh its current product lines. However, analysts say it's too early to tell whether CarPlay or the Apple TV can push Apple shares to its former high but investors are still holding on to see what the company has come up with for the year.
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