Samantha Fischler is a Junior Financial Analyst at I Know First.

Apple Stock Prediction

Summary

Apple’s iPhone 8 is rumored to feature high-speed wireless charging, OLED screens, and the A11 chip

Apple may be exploring the possibility of an Apple car

Apple is in talks to acquire music streaming service ‘Tidal’

Major progress in Apple Campus 2

Apple to expand retail stores to other countries and to open research facilities in India

I Know First’s algorithm is currently bullish on AAPL in the long term

A View of the Top: Tim Cook

While Tim Cook is on the board of directors of Nike, Inc. and the National Football Association, he is more notably the CEO of Apple, Inc. He has held that position since August 2011 when then-CEO Steve Jobs stepped down to be chairman of the board a mere 6-weeks before his passing. Cook’s leadership of the tech giant Apple is based off of three principles that he deems necessary to create a positive and effective work environment: people, strategy, and execution. Cook has really stepped up to the plate to fill the large shoes that Jobs left when he stepped down as CEO of this giant corporation, continuing Jobs’ legacy and taking on groundbreaking new projects.

Apple on the Cutting Edge: iPhone 8

The always revolutionary Apple is making waves in the headlines yet again with rumors about their iPhone 8… and this is before the iPhone 7 has even been released. One such rumor is that the iPhone 8 and all subsequent models will have wireless charging capabilities that, due to Apple teaming up with LG subsidiary Innotek, will be faster than that of other companies. Probably the biggest and most frequent complaint that iPhone users have is that their phone batteries are constantly dying. Apple is also expected to replace its current screens with 5.8” OLED screens, which will reduce battery usage. Another tech spec to be improved is will be the chip. The iPhone 8 will likely utilize Apple’s A11 chip which is the latest technologically advanced chip being developed by the company. Seemingly, the front of the phone will be entirely glass without the home button. While unclear exactly what it will look like, the back is projected to either be entirely glass like the iPhone 4S or a combination of glass and the aluminum that is used in the models that have been released after the 4S. Whenever a new iPhone comes out, there are people lined up for days outside of Apple’s retail stores for a chance to be one of the first to own the newest cool Apple gadget. If the excitement over the iPhone 8 before Apple has even announced any of the new features is any indicator, sales will be remarkable when the product is released, which is expected to be in the fourth quarter of 2017.

Project Titan

Ever since the Steve Jobs days, Apple has mulled over the idea of having an “iCar,” which is seemingly titled “Project Titan.” While no official plans have been announced by Apple, Apple recently filed a patent for a digital key through the iPhone, perhaps by using Bluetooth to unlock cars. Similar technology already exists through use of the BMW ‘i’ app, which is available on both the iPhone and Apple Watch, and can remotely control select BMW models such as the BMW i8. The new Apple patent would allow car owners to temporarily grant access to their car to other iPhone users. Let’s say you want to send your newly licensed kid to the grocery store while you finish cooking. Don’t know where your hard key is? That’s fine. You don’t need to give up your iPhone either, allowing you to continue looking at that recipe online. With a click of a button, you would be able to grant your child access to the car for a given amount of time.

To reiterate, Apple has not officially announced that an electric car is in the works. However, many clues have led people to this conclusion. For example, recently Apple has been hiring people who have vast experience in the car industry such as Steve Zadesky, a former Ford engineer, and Johann Jungwirth, former president and CEO of Mercedes-Benz Research and Development in North America. Additionally, Apple’s research and development costs have nearly tripled from what they were 3 years ago, leading to the idea that something big is in the works, which makes sense because building a car is capital intensive. Fortune asked CEO Tim Cook if Apple could afford to spend large amounts of money on just “exploring” different technologies and then not actually develop that or similar technology. Cook responded that “Well, could we? Yes. But would we? We don’t have to spend large amounts to explore… But when we start spending large amounts of money, we’re committed at that point.” Developing an Apple car would be a big investment for Apple in terms of both capital and manpower, but if Apple is successful and does decide to start producing cars, the return on the investment will be very worthwhile. Apple has built quite the name for itself since its inception in 1976 and just having Apple’s name on a car would make those who can afford to rush out to purchase the latest and greatest from Apple.

An Apple car would rival Tesla’s “Autopilot” feature that was introduced into its cars in October 2015. Tesla’s autopilot feature has the car steer, park, and change lanes without the driver having to do a thing. Tesla CEO Elon Musk ‘confirmed’ that an Apple car is in the works and that its only logical that Apple would work to create a car, but says that he isn’t worried about competition with Tesla.

Will the Tidal Wave Crash Down?

Apple is currently engaging in early stages of talks with co-owner Jay-Z to buy Tidal, a music streaming service similar to Apple and Spotify. The benefits to this acquisition include access to albums by chart-topping artists such as Beyoncé and Kanye West, which have been exclusively released to Tidal. While it is still early in the talks, there has been no news as to a potential price or if the sale will definitely happen at all, but if it did, it would open Apple up to a host of new subscribers.

The Spaceship: Apple Campus 2

A project that has been in the works for years, Apple is making major headway in building a second facility in Cupertino, CA, which Cook expects to be complete in 2017. When the environmentally friendly “spaceship shaped” facility is complete, it will host about 13,000 Apple employees in addition to serving as a work space for R&D, a place for meetings, an auditorium with a capacity of 1,000 people for presentations, etc. The architects of the building are mindful that different departments work more closely with some than others and are bearing in mind that those need to be in close proximity to each other in order to maintain a productive work environment. Apple has no plans of closing their other campus, also in Cupertino, CA.

Taking Over the World

Apple is renowned worldwide and in pretty much any country you go to, you can walk down the streets and find people looking down at their iPhones, mesmerized by whatever is on their screens. However, only 19 countries actually host Apple retail stores, including the US, Australia, Canada, the UK, and China. Apple is looking to expand their empire and their next stop: India! India just relaxed a set of rules that prevented Apple from opening their own retail stores there, instead forcing Apple to sell their products through third party sellers. By avoiding third party sellers, Apple is able to reap a greater profit from sales because third party sellers don’t take a commission. Reportedly, Apple is also looking into opening retail stores throughout Latin America, beginning with Mexico.

In addition to its retail stores, Apple announced that will be opening an iOS App Design and Development Center in Bengaluru, India in 2017 and a new Maps development center in Hyderabad, India. There are many clear things for Apple to gain from this decision. The software services industry in India is worth $100 billion and employs over 3 million staff who can bring in fresh ideas to Apple. Apple can greatly benefit from India’s innovative and educated workforce, as well as the supreme technology research that takes place there.

Looking Forward

I Know First’s algorithm is currently bullish on AAPL. In a 3-day forecast dated June 26, 2016, I Know First predicted that AAPL would have positive growth. As of June 29, the stock price had risen 1.07%, showing the accuracy of I Know First’s prediction.

Conclusion

As has come to be a given at this point, tech giant Apple is continuing to revolutionize the world, bringing us the most advanced and innovative new technology. Yes, Apple is shrouded in many rumors, but as the saying goes, where there’s smoke, there’s usually fire. There is much anticipation as consumers wait for all the specs of the iPhone 8 (and the iPhone 7 for that matter) to be released and for Apple to confirm its alleged Apple car plans. Under Cook’s leadership, Apple’s future is looking bright as it will surely continue to be the innovative and successful company that it is today, bringing us the latest avant-garde technology that we are so dependent on.

I Know First’s algorithm forecasts how stocks are going to perform for 3 days, 1 month, 3 months, and a year. In the case of Apple (AAPL), the middle row represents the signal strength and the bottom number represents the predictability indicator, the historical correlation which is heavily weighted on the algorithm’s recent predictions. To learn more about how I Know First’s algorithm operates, click here.