Sanford C. Bernstein, an investment firm, indicated that it may be advisable to invest in Apple stocks around two months before Apple (NASDAQ:AAPL) will introduce an iPhone or an iPad. The sharp gains currently attained by Apple stocks make it inaccessible for a good number of investors and people who may be able to get it may have to wait for the latest product cycle before doing so.
The most-recent research by the investment firm indicates that Apple stocks normally outperform around eight weeks prior to the announcement of a new product. The last few years saw Apple stocks increasing in short spurts. Due to this, investors are advised to hold on to long-term positions instead of getting the right timing in the market, according to Toni Sacconagh, Jr. of Bernstein Research. However Apple stocks currently have the potential for a near-term outperformance.
Industry watchers are currently waiting for September 12, when a major announcement will reportedly be made by the company. Recent reports have pointed to the date as scheduled launch of the next model of the iPhone as well as the iPad Mini. In addition to the two products, the company is also expected to update the iPod and offer additional information about the Apple TV.
The reports have already resulted to outperformance for Apple stocks in the past three weeks. Sacconaghi indicated that investing n Apple stocks around two months before the announcement of a new product normally gave investors good gains. His situation has become noticeable in the last two years, when two iPhone products were unveiled by the company.
The research also showed that not much movement in Apple stocks was noted two weeks following the launch of a new product. Apple stocks have also underperformed two months after the announcement of a new product. These observations have made Apple stocks more predictable to investors.
Sacconaghi added that Apple stocks are normally traded around one week before a new product I s launched and has been underperforming in the two months after the introduction.
Despite the relative predictability, some risks are still present for the company particularly if consumers are disappointed with the new iPhone. If Apple aims to promote the device to the lower-income groups, it may cause some consumers to opt to get an Android smartphone.
Competition and the emergence of a number of rival tablets have resulted to a slow demand for the iPad. The high demand, which the company may have a hard time in meeting, has also resulted to some problems for the company.
However Apple stocks are still preferred and are expected to outperform in the market.