Apple's New Macs & Chips: Investor Reaction

Concluding the event with a valuation of $1,985 billion, Apple’s Mac-focused presentation didn't quite reach the $2,000 billion threshold – more popularly known as $2 trillion – by a margin of $15 billion in market capitalization.

The team at TechCrunch closely monitored not only Apple’s unveiling of the new M1 processor – details to follow – and the company’s updated laptop series, but also its financial standing throughout the presentation. Our consistent inquiry during each major Apple announcement is: Will the revealed products alter market perception of the company and, consequently, its assessed value?

The response is almost invariably no. This trend seems increasingly pronounced as the company’s rate of introducing entirely new product categories has diminished, with a greater emphasis on progressively more sophisticated and costly iPhones. The latter are generally easier to forecast, leading to the perception that much of the product news is already factored into Apple’s overall value by the time live demonstrations occur.

Today followed this pattern, although there was initial anticipation. What if Apple were to introduce a substantial number of computers powered by its own proprietary chips, as anticipated? Would the potential for improved gross margins on a significant portion of its hardware sales stimulate investor interest and increase its worth?

Ultimately, the answer proved to be no.

The Apple presentation commenced at 10 a.m. Pacific time, corresponding to 1 p.m. as depicted in the chart.

Apple’s valuation fluctuated during the event, initially experiencing a rise leading up to the new MacBook Air demonstration. Subsequently, its shares declined, and the unveiling of the new Mac Mini failed to reverse this trend. The new MacBook Pro also appeared to have a negligible effect. By the time Apple CEO Tim Cook returned to the stage, the company had regained positive ground for the day, a development open to various interpretations.

Irrespective of your perspective on the M1 chip, Apple’s trajectory as a more significant chip manufacturer, and the latest computers from Cupertino, investors remained largely unmoved by the new product lineup – at the very least.

This outcome was in stark contrast to the experience of Intel, which faced a challenging day coinciding with Apple’s introduction of its M1 technology:

It’s conceivable that Apple investors aware of the M1 developments could have informed their Intel counterparts of what to anticipate. This might have mitigated some of the negative impact on Intel’s standing.

In any case, Apple’s product range for the holiday season is now defined. It remains to be seen how it performs amidst renewed global lockdowns. Perhaps it will be able to overcome its recent stagnation in revenue growth.