Apple Launches New Products, Binary Options Traders Gain An Opportunity

Apple Launches New Products, Binary Options Traders Gain An Opportunity
September 8, 2014

The internet and almost every other news medium was a cacophony over the pending tech releases from Apple, the popular global tech giant. The sheer noise about what could, should and would be announced was deafening. As a trader, it is far too easy to get caught up in this circus-like media frenzy. It’s at times like these that we stay objective and consider the facts.

We look at each of the key Apple products in more detail and consider what this means for Apple stocks, and therefore to Binary Options Traders of Apple stocks.

Apple went against the iPhone philosophy of yesteryear and introduced a larger 5.5 inch screen for the iPhone 6 ‘Plus’. This clearly challenges the market position of  phones with larger displays, an area previously dominated by Android based smartphones. The Apple device comes with the added bonus of ‘ion-strengthened’ glass, proven to be far tougher than the ‘Gorilla Glass’ displays used in previous versions of the iPhone. All versions of the iPhone 6 are also powered by a second generation A8 64-bit processor. Apple has stated that the A8 chip has twice the transistors of the previous A7 processor, but is 17% smaller. When it comes to tech, smaller tends to be better, and this allows the 4.5 inch and 5.5 inch iPhones to measure a slim-width of just 6.9mm and 7.1mm respectively. The iPhone 6 and it’s variants were an instant success, and have gone on to set new records for pre-orders.

The ‘Apple Watch‘ (NOT the ‘iWatch’ as previously anticipated), is a brave product choice as the smart wearables market is rather placid at this time. Apple have not made it easy for themselves, as the Apple Watch requires its owner to own an iPhone as well. This is a classic sign of Apple’s approach of ‘disruptive innovation’. A recent report by Citigroup analysts estimated that the wearable technology market was set to grow from an estimated $2billion in 2015, to approximately $10billion by 2018. Think back to the launch of the original iPod, the iPhone, even the first iPad. Variations of these devices existed, just as variations of the Apple Watch exists at this time, but the Apple devices were ahead of the trend when each launched. In fact, Apple’s smart marketing and product/service/packaging for each item was largely responsible for creating consumer trends with each device. There may be a steep learning curve ahead for Apple, but at a base cost of $82 and an RRP of $349 per unit,  they won’t exactly be selling the Apple Watch at a loss. The smart wearable market seems to be a sleeping giant. Pardon the pun, but it’s definitely one to watch.

Apple Pay is the new smart payment solution introduced by Apple to the iPhone 6, and it is set to revolutionise how we make payments. The system incorporates NFC (Near Field Communication) to provide users with a payment system/wallet via their iPhone. NFC has been available for a number of years, and many Android and Blackberry handsets incorporate NFC chips. Google even incorporated NFC technology to its currently US-only payment system, Google Wallet. Comparisons with previous payment systems is inevitable, but what make Apple Pay special is its focus on the user experience. Whereas previous versions of NFC payment systems have been vulnerable to security attacks, the Apple Pay system is unique and secure. The iPhone 6 incorporates the fingerprint scanner to authenticate payments. In addition to this, credit card details are never transmitted to the seller unlike with other NFC payment systems. Instead, Apple Pay sends a one-time authentication code and payment number unique to that one particular transaction. The final clincher to the ‘payment security’ is that Apple will never store any transactional information unlike its competitors like Google Wallet, giving consumers complete anonymity. Payment systems are undergoing a major evolution as mobile devices and internet based eWallets continue to grow in popularity and become more accessible. If Apple Pay gains traction, Apple could have a share of an annual transactional market, said to be worth an estimated $721billion by 2017.

What does this mean for Binary Options traders who invest in Apple stocks?

Apple have had plenty of movement over the last few months and have proved to be a great choice for the High/Low & Short Term instruments. Stocks jumped to $103 when the new products were announced. This last week has been incredibly volatile. We saw a decline to $98.07 just before the September event. On Tuesday 9th September, whilst the event was being broadcasted, prices fluctuated around $98-$102 before finally settling to $101.66 at close on the 12th September 2014. Overall, Apple stocks are reasonably stable and generally predictable. The September 2014 Apple event has been quoted as one of the most innovative in years. If previous performance, iPhone 6 pre-orders and the above innovations are anything to go by, we expect an increase in Apple stock values in the next year.

A number of Binary Options brokers offer Apple Stocks as an asset. Please look at the TradersAsset Binary Broker Review pages for broker recommendations.

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Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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