When it comes to development, there are couple of companies that can compete with Apple (NASDAQ: AAPL). The tech giant’s capability to incorporate novel innovation in its items has made the company’s stock among the most popular investments on the marketplace. AAPL stock presently comprises 6.7% of the S&P 500 which is a huge accomplishment for a business of its size.

Source: ZorroGabriel/ Shutterstock.com Hence, it comes as not a surprise that financiers weren’t too happy when the business’s big product unveiling last week did not include a new iPhone. The hype around 5G had lots of financiers and purchasers hoping for the release of Apple’s brand-new iPhone that incorporates this technology. However the company understood for its “another thing” minutes throughout item exposes, left investors yearning for more.

AAPL stock did see a decline in its share rate following the occasion however we advise holding on to this stock as its new items reveal some significant upside capacity.

AAPL stock falls after the big reveal

At its highly-anticipated expose on Tuesday, Apple exposed a variety of amazing new hardware products and a subscription service but the star of the program AKA the iPhone did not make an appearance. While this was a letdown for investors, Apple’s brand-new product lines are still a major game-changer for the company.

The highlight of the reveal was Physical fitness+, Apple’s new subscription service. With fitness centers closed for the foreseeable future, the brand-new service is Apple’s response to the at-home gym. It permits users to access new online exercise classes weekly for simply $9.99 a month and has fitness giants like Peloton (NASDAQ: PTON) at the edge of its seat.

However Apple’s most amazing reveal was its Apple One package. The package includes the best that Apple needs to provide covered into a single service. This consists of TELEVISION+, Music, Arcade and iCloud which you can buy for simply $14.99 a month. Users likewise have the option to purchase a bundle with the physical fitness service also.

The goal behind Apple’s new services is to ensure its users remain as linked as possible throughout the pandemic. However the business’s packages have received reaction from its peers who claim that tech giant is using its dominant position to make sure that customers never leave the Apple ecosystem. Packaged software application could injure companies like Spotify (NYSE: SPOT) that only provide music services.

However what about the iPhone?

Apple’s brand-new packaged software is definitely an attracting offer however the profits from these products just makes up three-quarters of iPhone sales. The highly-anticipated 5G iPhone model did not make an appearance throughout the expose and left many investors discouraged.

Nevertheless, Apple is known for revealing items more detailed to its shipping date professionals think that iPhone designs were most likely delayed due to the pandemic. The end product will be completed by late October which might imply that an unforeseen product expose could be in the works.

The iPhone has always been and dominant product and with Apple’s value now as much as a tremendous $2 trillion, there is a great deal of pressure on the company to provide. The business’s stock increased by 57% in 2020 and investors are wishing for some huge gains from the sale of the brand-new iPhone.

However, the AAPL stock pullback might simply be an action to the preliminary reaction of the product expose. Looking ahead, Apple One will make the company a significant gamer in both the media and physical fitness space. Companies like Peloton and Spotify stand to lose some market share to the tech giant.

So is AAPL stock still a buy?

Apple’s huge product launch was missing its star however this in no other way lessens the allure of this business’s stock. AAPL stock is still trading at 32 times forward profits and remains among the top stocks to buy on the S&P 500.

Experts stay optimistic about the future of Apple stock too. Laura Martin, an analyst at Needham increased the stock’s cost target from $112.50 to $140. She believes that Apple One has the capability to subdue other standalone brands in the market. Other analysts share Martin’s sentiment as well. Katy Hubert of Morgan Stanley believes that Apple One and Fitness+ could boost Apple’s service earnings.

Apple is a company that was built on development and its recent item launch is evidence of this. Although the iPhone has actually constantly been its bestseller, the Apple One and Fitness+ service posture a significant threat to other business in the market as Apple stands to get a higher share of the marketplace. There is a likelihood that these services might enhance AAPL stock in the coming months.

Stay bought this tech stock in spite of the present pullback.

On the date of publication, Divya Premkumar did not have (either straight or indirectly) any positions in any of the securities discussed in this article.

Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial author and expert who has actually written stories on various financial subjects from investing to individual finance. Divya has been composing for InvestorPlace since 2020.