New York City, New York – (StockNewsDesk) – 07/25/2014 — Apple is releasing a public beta version of its new operating system on Thursday, July 24, for anyone to try out. Some of the new features of Yosemite include a sleeker look with flatter icons, toolbars, and windows.
For shareholders, the most important new feature of Yosemite is deeper integration with iPhones and iPads. This continues Tim Cook’s strategy of getting consumers into the Apple ecosystem and keeping them there. Yosemite will help iPhone and iPad users more apt to make their next personal computer purchase a Mac, and Yosemite users would be more inclined to buy an Apple phone or tablet.
Beta versions are not finished products, and only the most dedicated Apple fans will be signing up for the product, as beta versions tend to be full of glitches. However, the beta period is key to releasing a fully functioning product free of bugs for its public release in the fall. Beta users will provide feedback to Apple that will be integrated into the final release.
Crowdsourcing and open communication with the Apple community is another note of differentiation,setting Tim Cook apart from his predecessor, Apple founder Steve Jobs. Such an experimental period would not have been considered under Jobs’ tenure as Apple chief with his focus on releasing perfect products under complete secrecy, even within Apple. In this beta version, Apple has a special application that will allow users to report any issues.
One aspect that the beta version will be lacking is the complete integration with the iPad and iPhone’s new operating system – iOS8. This is one of the most eagerly anticipated new features of Yosemite; however, however since iOS8 is yet to be complete, Apple fans will have to wait until the fall. There is considerably more secrecy around the new mobile operating system, given the brutal competition between Samsung and Apple.
Stock Price Impact
This news has had a muted effect on Apple’s stock price, as Tim Cook telegraphed this move in advance and a similar beta version was released for developers earlier in the year. Nevertheless, in the past months, investors have cheered Cook’s every move and especially his embrace of the Apple ecosystem.
The iPhone has become a gateway for consumers into the Apple ecosystem. The company has recognized and capitalized on this by strengthening the connectivity and bonds among all products so that iPhone and iPad features are enhanced by using a Mac and vice versa.
Apple has been one of the leaders of this bull market; its , its stock climbed as sales, revenues, and margins expanded. The stock hit a split adjusted peak of almost $100 in late 2011 and early 2012. As the company’s growth slowed, they began instituting share buybacks and a dividend, morphing from a growth stock to a value stock. The shareholder base turned over, criticizing that the company had lost its luster following Steve Jobs’ passing.
Now, these criticisms seem silly and the pessimism due to the company’s transition in retrospect was a glorious buying opportunity. Despite the turmoil and public questioning of Cook’s decisions and leadership, with the stock falling around 40% from its peak, Cook stayed steady and loyal to the vision, crafted by him and Jobs. The stock has been among the best performers in 2014 as it makes new all time highs, regaining its throne as the world’s most valuable company.
Here is a monthly, ten year chart of Apple:
The company looks poised to continue its success as investors eagerly look forward to its newest release of products in the fall, including the iPhone 6, OS X Yosemite, and a new line of Macintosh products.