It is been a good year for the shareholders of Apple (NASDAQ: AAPL).
For 2014, Apple is more than 24 percent. It is up for the last month, quarter, six months, and year of market action (chart below). Management has done a great job in raising the price of the stock. Much of that has to do with today’s launch of the iPhone 6 and the iWatch.
Consumer behavior will have to change for each to be popular.
After all, the iPhone 5 is being given away now by Verizon Communications (NYSE: VZ) to get consumers to extend contracts. The iPhone 5 was and is a great smartphone. That is the probably: there are many excellent products on the market like the iPhone 5 and the Galaxy from Samsun (PINK: SSNLF) that satisfy consumer needs.
That means that the iPhone 6 and iWatch will have to create consumer demand for the new offerings.
This a very challenging task, to say the least. Research shows that about 90 percent of apps are downloaded, used once, and then deleted by the consumer. Apple is trying to change that entire paradigm with the iWatch and the iPhone 6.
What makes that even more challenging is that much of that has to do with the health other consumer.
Both the iPhone 6 and iWatch are dedicated to bringing more health features for the consumer. Now the iPad and Google Glasses (NASDAQ: GOOG) have been adapted by medical professionals for health care uses. But that is very different than getting masses of consumers to alter their heatlhcare habits for a new iPhone 6 or iWatch.
For the shareholders of Apple, the lesson of the iPhone 5 should be remembered.
When it came out in September 2012, the stock price of Apple soared. Then it plunged. The iPhone 5 was and is a great cell phone, but could not maintain the previous bullish stance of Wall Street.