The annual Worldwide Developers Conference started Monday. Apple, the Club’s third-largest stock, has updated its software for its Macintosh computers. The new MacBook Air and 13-inch MacBook Pro models will feature the new in-house M2 processor. The main focus of the weeklong WWDC is on developers who make applications across suite of Apple products. Monday’s announcements are nice but don’t address the bigger issues driving Apple’s stock price on Wall Street. We heard a number of positives on the first day, which shows why we always say “own Apple, don’t trade it” Many of the updates are exciting for consumers, but we believe they are unlikely to affect the near-term trajectory of Apple shares. What matters most for Apple right now is supply-chain challenges and a potential slowdown in App Store revenue, the latter of which was called out last week by our favorite analyst covering the name, Morgan Stanley’s. In Apple’s upcoming fiscal third-quarter earnings, investors are looking for clues as to how the headwinds may show up. We didn’t get any updates on them during the keynote video, and Apple CEO Tim Cook didn’t give us any answers after the interview. In April, along with its second-quarter results, Apple said it could lose up to $8 billion in sales because of supply chain issues. Demand from consumers in its second-largest market by revenue is being affected by Covid lockdowns in China. The U.S. is its largest nation. At the time, investors took heed of the warnings, and any new information would almost certainly show up in the chart. This helps explain why Apple’s stock had a relatively small move on Monday. The tech-rich index rose 0.4% to start the week. Apple was upgraded to a 1 rating by the Club last month and we consider it a buy at current levels. We rate the stocks in our portfolio in this way. Along with the tech sector, the stock has taken a beating, down 18% year-to-date. It recovered from its low on May 20th at $138.61 per share. Now that the major updates have been made public, we think some analysts may revise their forecasts. The stock could also be affected by those potential changes. The expression “own Apple, don’t trade it” reflects our belief that Apple is the best consumer products company in the world and therefore, staying invested in the stock over the long term is an imperative. When the new hardware models are released, Apple captures immense brand loyalty that drives purchases of the new hardware models. Revenue from services like Apple Music, iCloud storage, and Apple Pay can be found in thatecosystem. On Monday, we heard about an update to the software that allows for more customization of the lockscreen and the ability to edit and unsend iMessages. We heard about a buy now, pay later offering through Apple Pay, as well as new features coming to CarPlay software for the iPhone. A new offering from Apple allows an iPhone camera to be mounted to a MacBook and used as a high-quality webcam. The performance of Apple’s anticipated second-generation M2 chip was the most important thing that we learned. It is designed to maximize MacBook performance and minimize power consumption. The original M1 chip has 25% more transistors and 50% more bandwidth, but the M2 chip has 50% more transistors and 50% more bandwidth. Apple began using its own chip in laptops and computers in 2020. It has been a successful endeavor. The new MacBook Air and 13-inch MacBook Pro will be the first to use the M2 chip. An exact launch date was not revealed but Apple said they will be available next month. Here is CNBC’s recap of the event, a full rundown of everything that Apple announced Monday. Cramer has a Charitable Trust that is long AAPL. Here is a full list of the stocks. You will receive a trade alert before Jim makes a trade if you are a subscriber to the CNBC Investing Club with Jim Cramer. Jim waits 45 minutes after sending a trade alert to buy or sell a stock in his charitable trust. If Jim has talked about a stock on CNBC, he waits 72 hours after issuing the trade alert to execute his trade. The above information is subject to our terms and conditions and privacy policy. No fidelity obligation or duty exists, or is created by virtue of any information provided in connection with the investing club. No specific earnings or profits are guaranteed.

An illustration photo shows the Apple website on a laptop screen and the Apple logo on a phone.

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