Here Are The Reasons Why Apple Needs To Release A Hit Or Product Or App Soon

Apple is going through a bit of a rough patch. The sales for the latest iPhones weren’t as strong as expected.  At the moment, Apple stocks are quite cheap according to experts: “The stock is cheap, I mean, it’s selling at low multiples,” explained King Lip, chief strategist at Baker Avenue Asset Management.

Apple needs to speed up things

The reason why the price for the stocks is quite low at the moment is because things are quite slow for the company at the moment. Sales aren’t very high, and it appears that iPhone owners prefer to wait a bit longer before upgrading their devices.

“The reason why we think it’s selling at low multiples, frankly, is because the growth of the company is slower,” King Lip said. “It does appear and very clear to us that, you know, Apple’s historic robust double-digit growth is behind the company and at least in the short-term, it doesn’t appear that there’s any catalyst to turn them around.”

Focus more on services?

It is obvious that iPhones sales are weaker than Apple expected. However, experts believe that the company could choose to focus on services instead. There are 900 million active iPhones, and they could generate quite a profit.  “If the company can’t leverage off of that, you know, management … needs to be replaced. I mean, 900 million iPhones, there’s a lot of services that can sell through that,” explained Lip.

Services such as Apple Music and Apple Pay are popular amongst iPhone users and Apple should take advantage of that. However, beyond that, the company really needs some sort of innovative product or service as soon as possible. Customers aren’t willing to invest unless they receive something innovative in exchange. Daniel Flax, senior research analyst at Neuberger Berman concluded that Apple needs to “constantly reinvent itself”.

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