Apple shares are trading 15% below their highs. In 2019 and 2020, their value increased by more than 80%, so the current hitch is making investors nervous. At the same time, the company does not have any serious problems – most likely, the upward movement will resume after consolidation, during which other securities will be able to reduce the distance to the market leader.
Some are confused by the weak demand for the iPhone 12 mini, which accounted for only about 5% of all sales of new smartphones. However, sales of the Pro and Pro Max models stretched the segment: revenue from the sale of smartphones increased by 17.2%. Further adoption of 5G technology should increase interest in the expected Apple devices.
Another important point is the high growth potential of "service" income. In the period from 2016 to 2020, the revenue of the ‘Services ' segment doubled. Despite the high-base effect, experts expect revenue to double from current levels by 2025. There are at least several reasons for this: the launch of the Apple One, as well as an increase in the number of active devices to 1 billion units.
The amount of “net cash " on Apple's balance sheet is $84 billion – this is just an incredibly huge amount, so the expansion into new markets will continue: Apple Car, VR, AR and much more. Let's not forget about the main driver of quotations – operations to buy back shares from the market. In the period 2012-2020, management allocated $402.7 billion for the buyout. Plans to withdraw securities from circulation are announced in the financial report for the first quarter of each year, which means that in a month we will be able to find out whether the company is ready to continue operations. Given its financial situation, there is no doubt about the extension of the program.