Are Apple Bytes Tasting Sweet To Investors Again?

Nasdaq Posting Stellar Gains

The Nasdaq stock exchange has had quite a year so far, with a massive 33 percent increase that is equal to a 1,000 point rise. In fact, the exchange topped the 4,000 mark just in time for Thanksgiving this year, and the holiday shopping season is only just begun.

The Nasdaq is powered mostly by tech stocks, which explains the big rise it has seen this year, as the tech market has expanded and grown exponentially. While the massive increase in the exchange’s overall value seems monumental – and it is – but it is so much more impressive because its number one company by value has not really pushed the numbers this year.

Apple Not Keeping Up With The Rest Of The World

Apple Inc. (NASDAQ:AAPL) is the most valuable stock in the world. However, it has fallen far behind the pack this year, and has only risen 4.5 percent. Last September saw Apple Inc. touch its high water mark of $702, followed by a subsequent slide and recovery to its current level of $556.07 per share. The stock seemed to sour in the mouths of investors almost overnight, and it shed value by more than $200 per share before finally leveling out and making a comeback.

Apple Staging A Comeback

While it has seemed that shareholders in Apple have been left with sour cider for the last few months, it is possible that some sweet nectar may be just around the corner for the Cupertino company. We recently reported that Apple is projected to hit $600 per share by January of next year, and the company is climbing towards that mark each day.

While the stock gained $10.11 per share today and rose by 1.85 percent, the fact that it is inching towards that $600 mark could be a sign that investor confidence in the company is once again growing. The company is a conundrum of sorts, with analysts having multiple predictions regarding its future. However, the company has a huge cash pile, which Carl Icahn believes should be distributed through a massive share buyback program. The company also manufactures and sells the premier electronic devices of the day, with iPhone and iPad being household words in America and other thriving nations.

What Does The Future Hold?

Will Apple make a comeback to its glory days in the $700 price range? I think so, although I look for it to be somewhere in the fall of next year. I believe the iPhone 6 launch and possibility of an iWatch launch could be the catalysts to push the stock back to its stellar heights. In the meantime, buying shares of Apple Inc. (NASDAQ:AAPL) seems to be a great way to squeeze some juice from the sometimes bitter market.

Disclosure: Author holds no position in any stock mentioned at the time of this writing.

Apple Confirms PrimeSense Deal

Well, Apple has finally made its acquisition of PrimeSense, the Israeli company that builds 3D vision sensors for machines like the X-Box Kinect. According to reports, the company was purchased for a price in the neighborhood of $360 million.

Krisitn Huguet, an Apple spokeswoman, confirmed the deal, but did not divulge what Apple plans to do with its new acquisition. She said, “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.” This answer is altogether typical of Apple Inc., as Tim Cook never likes to tip his hand in the middle of the game.

Apple could utilize the technology from PrimeSense in many different ways, as the company has moved away from its original sensor program that built large pieces, similar to the one in Kinect. The company’s new line of sensors, like the Capri, would work well for mobile devices.

PrimeSense is the perfect acquisition for the Cupertino company, as it will give Apple a direct line on motion sensitive sensors for its new products, which could include an Apple TV and an iWatch. I guess we will have to wait and see what the tech giant does with its new toy, although it’s highly likely that Tim Cook would like to find a way to use it to boot Samsung from the market for good.

iWatch Will Have To Out-Perform Samsung Galaxy Gear

Rumors of Apple being in the development stages of a wearable smart device, which has been labeled the iWatch, have been circulating for quite some time. Those rumors have grown considerably more popular in recent days.

Galaxy Gear Is A Flop

Apple’s arch-enemy, Samsung, released its version of an iWatch in September. The Galaxy Gear was launched amid fanfare and advertising, which led many to believe the device would be a popular piece on consumer shopping lists. However, as of now, the device is a flop as far as sales are concerned.

Since the device debuted at the end of September, it has recorded approximately 50,000 sales. This number is well below what the company expected to sell, and everyone knows it. BusinessKorea said on Monday that the daily sales of the Galaxy Gear are in the 800 to 900 unit range. The publication notes that this is “far below initial expectations.”

Part of the reason for low sales is the fact that many of the initial reviews of the product slammed it pretty hard. The major faults noted in reviews were the high price of $300, the short battery life, and the initial limitation of connectivity with only the Galaxy Note 3. The last issue was later resolved, with support for the Galaxy S3, S4, and Note 2 being added to the device.

Apple’s Plans

According to the rumor mill, Apple will be releasing an iWatch next year. The difference between Apple’s product and the Galaxy Gear is that Apple’s product is rumored to center around the physical health of its owner. With special biometric sensors, the iWatch may be able to offer valuable feedback regarding the medical conditions of the wearer.

All of this is still conjecture at this point, as Apple has not yet conceded that an iWatch is in development. However, the rumor mill, although sometimes missing the mark, is for the most part a fairly reliable source.  If the rumors do prove true, then Apple will have to make sure the iWatch outperforms the Galaxy Gear, or the company could end up with time on its hands.

Tiny AppleBytes will keep you updated as we learn more about the iWatch.