Market Overview

Kinahan: Apple Airstrip Has Huge Potential, Pencil Could Offer Differentiation To Competitors

Share:
Kinahan: Apple Airstrip Has Huge Potential, Pencil Could Offer Differentiation To Competitors
Related AAPL
Kevin Kelly's Apple Options Trade
The Holiday Season Has Been Kind To Discount Retailers, Not So Much Toward Department Stores
Zeke Ashton Reduces, Eliminates Multiple Positions in 'rd Quarter (GuruFocus)

  • Shares of Apple Inc. (NASDAQ: AAPL) were enjoying a post-event boost on Thursday.
  • TD Ameritrade's Chief Strategist JJ Kinahan said that Airstrip potential is "great."
  • Kinahan noted the Apple Pencil offers a degree of differentiation in a "pretty crowded space."
  • Speaking to Benzinga, TD Ameritrade's Chief Strategist JJ Kinahan discussed Apple's presentation, at which the company introduced both new and updated products and services.

    Kinahan pointed out that in typical Apple fashion, the stock initially declined, only to stage a rally. The investment pro attributed the typical post-presentation rally to the fact that "it's Apple and people think Apple is cool."

    Related Link: Steve Jobs Might've Hated The Apple Pencil

    The Presentation Overview

    Kinahan added that Apple's presentation focused less on the Apple TV than some had expected, but nevertheless, this was the right move as the product is a "very, very small percentage" of total revenue.

    Moving on to the newly introduced Apple Pencil, consumers and the investment community will debate if the product will drive incremental iPad sales. Kinahan pointed out that the product does offer a certain degree of differentiation in the "pretty crowded space."

    Finally, the Watch's Airstrip may mark Apple's official entry to the health and wellness space, and potentially compete against Fitbit Inc (NYSE: FIT). According to Kinahan, over the longer term, Apple's new health and wellness products and services could boost iPhone sales, but a short-term boost to sales is not as clear.

    "The potential is great, obviously, but it's a ‘to-be-seen,' but provides near-term excitement," he concluded.

    Image Credit: Public Domain

    Latest Ratings for AAPL

    DateFirmActionFromTo
    Oct 2016Goldman SachsMaintainsBuy
    Oct 2016Credit SuisseMaintainsOutperform
    Oct 2016PiperJaffrayMaintainsOverweight

    View More Analyst Ratings for AAPL
    View the Latest Analyst Ratings

    Posted-In: Apple Airstrip Apple Pencil Apple Presentation Apple WatchAnalyst Color Top Stories Analyst Ratings Tech Best of Benzinga

     

    Related Articles (FIT + AAPL)

    View Comments and Join the Discussion!