Apple and Amazon put all the meat on the grill with the iPhone 12, and the ‘prime day’ to spur consumption and fight the coronavirus
Apple and Amazon they unfolded the jar of scents to accelerate the Nasdaq’s recovery to its all-time highs. The new iPhone 12 and the ‘prime day’ offers are your weapons to achieve this.
The Cupertino firm this summer surpassed two trillion dollars in capitalization and Amazon is going for 1.7 trillion. Between the two, it is enough to buy the entire IBEX 35 several times and all the more reason to pull the market when the second wave of the coronavirus threatens to clog it.
The two companies are key to driving investor appetite for the technology sector but also for consumer discretionary.
With the elections about to take place, and with the Christmas season just around the corner, the market waits like rain in May for positive news from the two technological behemoths.
Apple and the new iPhone 12
- The apple multinational will present its new iPhone 12 with 5G technology on Tuesday. By promising substantially higher speeds, it could be a very compelling reason for users of old terminals to decide to make the switch.
- Analysts expect this to be the beginning of “a new and very profitable cycle” for the iPhone, they explain at the Wedbush broker. In fact, the sales figure could reach the levels of 2014, when Apple introduced a larger screen and sold a record number of terminals. Or those of 2017, when the revenue record was broken after introducing facial recognition.
- Record sales in sight. If these projections are met, Apple would exceed 231 million phones sold in 2015 with the iPhone 6 Plus, the first large-screen version, in its fiscal year, as calculated by Wedbush.
- However, it is not clear whether these expectations will be realized in the year of the pandemic. And, as much as analysts wait, the coronavirus has accelerated teleworking, for which many employees still resort to domestic connections. In fact, Apple itself has doubts. And that is the reason why this ‘keynote’, which was a fixed for the beginning of September, has been delayed for more than a month.
Is 5G so bad? The truth is that it is not clear if the market has reached a point to massively seduce consumers. Samsung has been selling 5G terminals for a year and there is still no clear reason to justify the higher spending.
“The usefulness of 5G is far from clear,” he said. Cliff maldonado, founder of BayStreet Research, which advises hedge funds and tech companies. This expert doubts that sales exceed the levels reached with the iPhone 6.
Amazon’s ‘prime day’
- Amazon’s intention is to accelerate consumer spending and bring it closer to Christmas. Hence the delay of his ‘first day’, which was normally celebrated in July. A recent survey by Harris and Bloomberg shows that nearly half of consumers plan to shop online. They send the security reasons.
- In the two days starting today alone, Amazon could bring in more than $ 6 billion, according to calculations by Andrew Lipsman, an analyst at eMarketer. “It is an unprecedented demand,” adds this expert.
- Psychological factors. They also matter, and a lot. They could be an incentive to spend more. Most households have reduced travel, meals away from home, and other expenses. Why not spend more online? “I owe it to myself at a difficult time,” reflects Jack Kleinhez, chief economist at the National Federation of American Retailers.
- So far this year, Amazon shares have soared 85%. The group posted record profits last quarter. Its capitalization is 1.7 trillion, compared to Apple’s 2 trillion.