Apple shares have risen dramatically after high profile investor Carl Icahn revealed a ‘large position’ in the tech behemoth. Apple shares (NASDAQ: AAPL) are now up nearly 3% to $503.25 per share. In less than 8 weeks Apple has gained roughly $1 billion in market capitalisation. The 77 year old billionaire Carl Icahn described Apple stock as being ‘extremely undervalued’. Icahn revealed he had spoken personally with Apple CEO Tim Cook regarding the stock purchase.
Apple has a whopping $145 billion in cash
Even as recently as late June, Apple shares had closed at $393.78, roughly inline with their December 2011 performance. The latest increase in value represents nearly a 30% uplift in less than 50 days. Some analysts believe that despite the recent hike in value, that Apple shares are prone to volatility and uncertainty. Apple has a whopping $145 billion in cash and a mature position in the market, but CEO Tim Cook is coming under pressure to innovate fast.
No major new announcements from Apple
The last Apple WWDC (worldwide developer conference) failed to produce any new products, with the exception of an updated Macbook Air. The biggest announcement was the roll out of iOS7, with some suggesting a radical new approach to Apple’s mobile UI/UX. However the WWDC was also termed a disappointment, with many expecting Apple to announce a smart tv or wearable technology such as the rumoured iWatch.
Apple’s September event to launch the new iPhone(s)
In September Apple is expected to announce the launch of two new products, a new iPhone coined the ‘5S’ and a budget iPhone named the 5C, the latter strategically intended to compete with Google Android’s low cost mobile alternatives. If Apple can fight back and capture some of Android’s market share, it could really shift the perception of the company.