This article will be devoted to a company whose name is known, perhaps, to every person in the world. However, even such mega-giants must report on their achievements and successes in order to attract attention to their assets and increase their competitiveness.
Let's talk about Apple! By the beginning of the winter of this year, the company's paper had reached another record high. Moreover, a little earlier, Morgan Stanley analysts predicted this growth.
The improvement of forecasts for the future is also quite justified. If a little earlier experts were talking about a position of $164 per asset, today this figure tends to $200. Forecasts have been updated due to newly discovered situations. For example, the approach of the holidays, as well as the release of new gadgets allowed the company's shares to gain momentum. More recently, the company offered the world community an innovative product - augmented and virtual reality glasses. In addition, not only Morgan Stanley analysts, but also specialists from other analytical agencies predict a high jump in asset prices for Apple.
There are several main reasons that arouse interest in the tech giant's papers. To begin with, it is worth considering his financial situation. Let's not skimp on epithets – it's perfect, as always. In the last quarter of the last fiscal year, Apple's revenue grew by 29%, and reached $83.4 billion. High indicators were observed in all geographical regions of the company's activity
Maximum sales, consumer interest, an established and convenient ecosystem are the main reasons that raised the company to the proper level. High indicators look very impressive, given the fact that a pandemic is raging in the world, and supply chains are severely disrupted today. According to the company's management, we could have expected even more significant revenue if there had not been a shortage in the raw materials supplied for the production of systems.
How competently and diligently the company manages its own cash position in the amount of $66 billion and free cash flow of $93 billion also attracted the attention of depositors.
In the last quarter of the last financial year alone, Apple returned about $24 billion to its depositors, of which 3.6 billion went to dividends, 20 billion to purchase securities on the open market.
Services as a step into the future
Taking into account the opinion of experts, very soon we will be able to witness how actively Apple is developing the service sector. Moreover, the forward movement has already begun, and in a short time it will surpass the indicator of the customer base. For the period of 2021, the company's revenue reached $68.4 billion, which in percentage terms in relation to the total figure was 19%, and compared to last year increased by 27%. Analysts are confident that by 2024 this figure will grow to $100 billion.
Last year, the service's offers covered no more than 10% of the cost of sales, and its volume was equal to 5% of revenue. Based on the results of the report, it can be concluded that the growth of this segment is on the face. Apple carefully implements all innovations, gradually adding and testing new services. For example, new membership levels have been added to Music, and new award–winning content has already been added to TV+.
For the company itself, its own service today ranks 2nd among all sources of income. On the first – the invariably brilliant iPhone. Today, the number of devices with active Apple applications in the world is approaching $1.8 billion, which gives service services the opportunity for mass development.
Apple and Inflation
Inflation is a real problem for most companies of any scale. Enterprises have to experience a large number of shocks when the growth of inflation becomes strong. For example, you need to raise the salaries of your employees, increase production costs, part of which goes to purchase more expensive raw materials and spare parts. This is followed by a rise in prices for manufactured products, and with it the loss of the part of the audience interested in purchasing goods. All this happens if it is not possible to negotiate with suppliers on reduced prices for consumables, components, raw materials.
Apple doesn't even think about it. The company is a brand with a big name and has its own power capable of dictating its prices not only for manufactured products, but also for supplies. Plus, Apple prefers to cooperate with several suppliers at once, thereby maintaining competition between them and forcing them to lower prices.
An equally significant fact is the maximum reduction in dependence on third-party manufacturers. Today, a lot of components for iPhones and other gadgets are manufactured on the basis of the company itself. For example, not so long ago Apple abandoned Intel processors for its devices, because it launched its own production capacities for Arm processes. Another big step in this direction was the acquisition of a division that produces modems based on the Intel baseband. That is, in this case, the company has excluded its own dependence on Qualcomm.
In addition to all of the above, it is Apple that is least concerned about reducing consumer demand, even if it shifts part of its production costs to the consumer. That is, the company's resistance to inflation is currently the maximum.
How will the iPhone become the center of the future?
Over the past couple of years, we have all been watching the active growth of various NFT projects and cryptocurrencies. The price of some of the NFT projects has long exceeded $1 million, while each structure has begun to acquire new options. This process will last almost constantly, as each new feature expands the capabilities of users more and more.
Active introduction into the digital services market can be either an advantage or a problem for Apple. Today, the company's protocols are limited to the use of many cryptocurrencies. These barriers make access to cryptocurrencies extremely uncomfortable, forcing consumers to open several electronic wallets at once.
It is doubtful that a customer who downloaded NFT will be delighted with the need to use only an Apple wallet, switching to it from the one from which the purchase was made. This situation is typical, for example, for Solan.
Apple has two ways to fix this problem. The first is to allow you to use more wallets, the second is to develop your own. This will make the NFT more convenient and functional.
Justification of asset growth
For a long time, the company's assets have been gaining momentum of growth. This fact is fully explained by the following nuances:
The Court of Appeal suspended the case with Epic Games. In this case, the issue of using links to third-party resources and payment systems is being considered. Apple management is confident that such manipulations can harm the security of user data in the AppStore. It may very well be that the process will take more than one or two years.
On the eve of Christmas, the company's sales are growing exponentially. It has always been so, and it will be so now. Plus, in the fall of this year, the company offered the world new gadgets, thereby stimulating even greater sales growth.
An equally significant boost for the company's quotes was the announcement of the development of its own car and the release of new items in 2025.
During the current year, the company managed to withdraw about 4% of its own securities from the market during the asset repurchase. This also greatly strengthened the authority of the organization. The number of shares on the stock exchange has decreased by 22% over the past 5 years, and the value of securities has increased by 500%.
Analysts are confident that the company's assets are overvalued today. The main problems that may arise with it are the consequences of the impact of the new strain of coronavirus on the global economy as a whole and possible supply disruptions.
Just the other day, the company's assets began to cost $181.3 per unit, the increase in the price of securities exceeded 25%. However, analysts believe that there are factors that can stop the paper. The situation is further aggravated by the nuances associated with the failure of supplies, causing a shortage of raw materials and components. This was confirmed by the company's managers during the last email call.
According to them, the supply failure predicted during the defeat of the planet by omicron can have an extremely negative impact on the company's revenue, and the spread of the strain will only worsen the situation.
What should the owner of the assets and the one who is just going to acquire them do in this case? In the short term, taking into account the upcoming holidays, the stock price will grow and reach a position of $200. However, after testing this mark, the stock will move into a rollback. If you buy Apple securities today, then only for a short-term period. Even in the medium term, with a drawdown, you can seriously lose.