Mobile Payment – Apple (NASDAQ:AAPL)’s New Service to Promote Sales

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By Thomas Copeland on September 11, 2014 Intl News

Apple (NASDAQ:AAPL) has introduced a new service for its customers; payment through mobile in its new iPhone. This service could increase the sales of the new bigger screened iPhones and also help to regain the stock market which was lost to android phones by Google.

On Wednesday, after the new iPhone 6 and smartwatch were launched, the shares of Apple (NASDAQ:AAPL) increased by 1.3%. The Apple (NASDAQ:AAPL) Watch is the first extension in Apple’s (NASDAQ:AAPL) products, launched by the company’s CEO, Tim Cook.

About 6 contributors had increased the price mark on Apple’s (NASDAQ:AAPL) shares. This mark had increased by $16 up to $116, although there can be an exceptional decline in the shares.

Apple’s (NASDAQ:AAPL) new wireless payment service, called Apple Pay, was highly acclaimed by many people on Wall Street. At Tuesday’s launch, Gene Munster of Piper Jaffray (NYSE:PJC) acknowledged the service by saying that it was the star of today’s show.

The service would make use of the Visa Inc. (NYSE:V), American Express Co or Mastercard Inc. (NYSE:MA) for the payment. The users of the new iPhone (6 or 6 plus) would be able to buy food or grocery by just tapping a button!

Other android phones like Samsung and Motorola have comparable wireless services but the payment systems, for example Google Wallet, are not strong enough to cope up with these sets.

An analyst William Blair stated that Apple (NASDAQ:AAPL) has made a remarkable progress by introducing the mobile payment service. This has been a displeasing issue since a long time, bothering the industry in terms of consumer ownership.

Tim Cook, the Chief Executive Officer of Apple (NASDAQ:AAPL) after Steve Jobs, was much stressed to bring about something new from the company and launch phones with bigger screens to compete with Samsung’s ‘phablets’ – a phenomenon that caught on after the company brought out phones that were huge in size; almost to be considered as tablets.

A research done by IDC described that international market stocks of iPhones dropped from 13% to 11.7% for the June quarter. The sales of iPhones share a large amount in the company’ earnings.

The analysts from BMO Capital Markets stated that the Apple Pay service should increase the sales of the company’s products and bring profit to the final revenue.

Another analyst from Pacific Crest, Andy Hargreaves stated that it was expected from the growth of iPhone 6 to greatly affect the Apple (NASDAQ:AAPL) stocks. Hargreaves is the only analyst who degraded the shares since May.

After the iPad, Apple’s (NASDAQ:AAPL) iWatch is the first different product launched by the company. The iWatch is fastened to the new iPhones 6; they are to be used in combination with the phones. The watch costs $349 and it performs functions like receiving calls, receiving messages, playing music and most of all, it will be a small wallet as it also has payment services.

The iWatch will be available for sale next year in the USA. People have been giving mixed comments on the watch; some appreciating its creativity while others commenting on the poor battery life.

Apple (NASDAQ:AAPL) shares were increased up to $98.18 on Wednesday. The closing amount was up by 0.38% according to Nasdaq.