Apple Inc Faces a Promising Second Quarter With Apple Watch

Apple Inc

Apple Inc faces a promising second quarter with the upcoming availability of its first wearable, the Apple Watch. The Cupertino, California-based tech titan is enjoying (since last year) strong numbers from its brand recognition, iPhone 6 sales and revenue. There are also favorable movements of Apple TV and Mac computers.

Interestingly, Apple Inc is in a dangerous stock with unexpected momentum swings of its revenue reports around its increase in dividends and buyback program. The company is growing incredibly, that many of its non-fans are perplexed.

Apple Inc’s first wearable that is “stylish” and “beautiful” will be for sale this 24th. The first Apple wearable is set to make lives easier, especially for those who are always on the move. This Friday, April 10, Apple’s new product offering in five years, will accept preorders, starting at $350.

While the Apple Watch is coming to the market, the Internet is filled with product reviews by tech enthusiasts, to help consumers get over the confusion of buying it or not. As expected, the reviewers have come up with a balanced evaluation of the pros and cons of the smartwatch and make comprehensive information handy.

Now, while Apple Inc faces a promising second quarter with Apple Watch, the much-hyped wearable acts like a solution looking for a problem. That is according to Lauren Goode, in her review for Re/code. Though the Apple Watch can only work with iPhone 5 and later models, it is obviously still not for everyone. It fills wrists with notifications, and allows the wrist to control Apple TV.

Reviews say Apple Watch works like a charm. Technical writer Farhad Manjoo of The New York Times said incoming calls, alarms and calendar appointment notified by the watch are like “persistent harp plucks.” The watch delivers information from the digital world, and as expected, without the need for the user to look at the screen for too long. He says the watch is really cool when it pays for groceries, or presents a boarding pass during flights. Just like the smartphones, the smartwatch is on its way to get out from the flashy accessory category, with on-body messaging systems.

Technology-wise, it is an iPhone add-on, said Goode, which may change consumer habits gradually – as they swipe family photos on the wrist, take a peek on a message or watch the heart rate when getting excited with a ball game. Nilay Patel of The Verge gives the Apple Inc’s watch a rating of 7 over 10, with its engine and many possibilities for developers to explore.

Nevertheless, its impressive traits are somehow overcome by issues of loading time and location services. Though Apple says upcoming updates will address the issues, the fact is, they do exist, now.

Then there is the battery problem. No matter how good the watch is, it is a dead object when its battery loses life.
While the watch is not life-changing, it is excellent, said Joshua Topolsky of Bloomberg. He anticipates Apple to sell millions of it and it will obsess people. A component of a huge ecosystem Apple has built for years, it is the simplest of all the other wearables.

Apple Inc is now strongly positioning and is capable of moving its bulk $100 billion cash on hand, that can see it push a buyback program between $130 to 150 billion. The Cupertino colossus is set to execute a massive buyback plan, with its reputation as a highly favored debtor, with cheap debts and free cash flow.

American businessman and investor Carl Icahn, as well as Apple CEO Tim Cook seem to be on the same page of giving back capital to shareholders through Apple repurchase programs, so the firm can reduce outstanding shares and increase the dividend payout over time. Icahn welcomed Cook’s move to make Apple more shareholder-friendly, as it returns capital to its shareholders via share buybacks. With lots of things going on in its favor, Apple Inc is indeed facing a promising second quarter with Apple Watch that will be selling this month, and onwards.

By Judith Aparri


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Photo courtesy of Mark Mathosian – Flickr License

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