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Article | 10 October 2019 | Investments
The pull of gravity
Apple launched its new iPhone handset with some fanfare, but an identical price tag to the last model. Perhaps the tech giant has hit the price ceiling for its handsets and tablets. And that’s why Apple is looking for alternative revenue streams. The focus will switch to services, such as music, games and the newly launched Apple TV+ streaming service. This helps to keep users of older iPhones in the Apple ‘ecosystem’ and still generating revenue. But at only $4.99 per month, will TV+ ever justify a market value above $1tn?
Riding the whirlwind
Brexit newsflow keeps on spinning. The suspension of UK parliament was overturned by the Supreme Court. But not before voting to push the Brexit deadline into 2020, unless a deal is struck by 18 October. And not without accusations that the highest members of the government have lied to the Queen. Prime Minister Boris Johnson still sees the UK breaking free on 31 October, like an angry Incredible Hulk. The EU has told him to ‘stop pretending to negotiate’ and to use his time wisely.
Oil price fires up
As if to illustrate how jumpy commodity markets can be, the oil price shot up 20% overnight in response to drone strikes on refineries in Saudi Arabia. This sounds dramatic, but in fact oil was only regaining levels last seen in May. The price promptly slipped back again, as the Saudis promised to bring production back on stream in a matter of days. Meanwhile climate activists stress that, unlike oil, alternative energy sources are less likely to find themselves at the mercy of geopolitical shocks.