Kinahan: Apple Airstrip Has Huge Potential, Pencil Could Offer Differentiation To Competitors

Speaking to Benzinga, TD Ameritrade's Chief Strategist JJ Kinahan discussed Apple's presentation, at which the company introduced both new and updated products and services.

Kinahan pointed out that in typical Apple fashion, the stock initially declined, only to stage a rally. The investment pro attributed the typical post-presentation rally to the fact that "it's Apple and people think Apple is cool."

Related Link: Steve Jobs Might've Hated The Apple Pencil

The Presentation Overview

Kinahan added that Apple's presentation focused less on the Apple TV than some had expected, but nevertheless, this was the right move as the product is a "very, very small percentage" of total revenue.

Moving on to the newly introduced Apple Pencil, consumers and the investment community will debate if the product will drive incremental iPad sales. Kinahan pointed out that the product does offer a certain degree of differentiation in the "pretty crowded space."

Finally, the Watch's Airstrip may mark Apple's official entry to the health and wellness space, and potentially compete against Fitbit Inc (NYSE: FIT). According to Kinahan, over the longer term, Apple's new health and wellness products and services could boost iPhone sales, but a short-term boost to sales is not as clear.

"The potential is great, obviously, but it's a ‘to-be-seen,' but provides near-term excitement," he concluded.

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