Risk Management, Trading & Portfolio Strategies

What Samsung’s smartwatch moves mean for AAPL

Recent activities in the AAPL price suggest that future growth is possible given investor sentiment.

Recent activities in the AAPL price suggest that future growth is possible given investor sentiment.

Apple's stock used to be the darling of the market and, for those in the tech investment business long enough, was an unbelievable source of price return. Yet since last fall, AAPL's price has been forced down by a series of missteps and perception shifts that have made it tough for holders of the stock to stay onboard with where the company is going.

A new innovation development was announced this week, as Samsung Electronics Co., Apple's chief rival in the global smartphone market, has applied for trademarks in both the United States and South Korea for "Samsung Galaxy Gear." It was described by The Associated Press as a wristwatch "capable of providing access to the Internet, for sending and receiving phone calls, electronic mails and messages" as well as "for keeping track of or managing personal information," according to Samsung's official application. 

Apple applied for trademarks to an "iWatch" earlier this year, so it's likely that the two companies will enter the next phase of portable consumer technology — the smartwatch. The fact that these devices will be capable of phone contacts is revolutionary in and of itself, setting the stage for future price shifts.

How will these changes play out? While one can only speculate about the future of mobile computing in regards to smartwatches, it's clear that both Apple and Samsung will fiercely compete for control of an entirely new consumer tech market. This will no doubt entice some investors of AAPL to either hang onto or even expand their holdings, while incentivizing others to buy in as well. Apple's management team is also certainly looking for ways to reverse the downward risk trend of their stock price and the iWatch could provide a new avenue for growth and market expansion that investors are quietly rooting for. 

Learn more about AAPL's price history and future potential by using SmartStops, an innovative set of portfolio management tools designed to save investors money in a volatile environment. Our users have saved over $275 per share thanks to our warnings system, so join other tech-savvy investors by clicking here to learn more. 

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