It appears Apple has wowed the crowds at the firm's developer's conference this year.
The latest news involves a partnership with TomTom in which the navigation firm will provide an application for Apple's iPhone -- theoretically making a GPS unnecessary.
I'm excited by the Tom-Tom development, says Fast Money trader Pete Najarian. It makes the iPhone that much more attractive.
Of course the really big news come out one day earlier, when Apple stunned investors with a decision to slash prices, dramatically.
For example, Apple cut the entry price for an iPhone in half. The 8-gigabyte iPhone 3G, which came out last year, will be reduced to $99 from $199.
They also introduced two new models -- both at higher price points. The 3G S will sport a faster processor and sought-after features like an internal compass, a video camera and an improved photo camera. A 16-gigabyte version of the 3G S will cost $199 and a 32-gigabyte model will be $299.
Mike Abramsky of RBC Capital Markets greeted the news enthusiastically. “I think we’re seeing that innovation is alive and well at Apple”, he says on Fast Money. “And Apple is taking their production efficiencies and passing them along to consumers. (But despite the price cuts) their margins should remain sustained and possibly even boosted by the move in the short-term.”
The newest iPhones go on sale June 19, just as two-year contracts for the buyers of the original models are expiring.
Apple also slashed prices on many of its laptops. Specifically, the new MacBook Pro laptop with a 13-inch screen will now start at $1,200 while a 15-inch model will sell for $1,700 and up – both are $300 less than existing similar models.
What's the trade now?
I think Apple is a little over-extended here, muses Guy Adami. I think you see it at $130 before you see it higher.
The stock may pull back in the short term but I’d get long for the long term, counters J.P. Mark of Farmhouse Equity Research. I think the new applications introduced at the conference as well as the high speed capabilities of the iPhone are long term bullish.