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.
Perfect quality
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.
After yesterday's report on consumer inflation in the United States, which showed an increase from 7.9% to 8.5% over the month, the probability of a Fed rate hike in May by 50 basis points in the futures market increased to 90%, and analysts assume that there will be 3 such aggressive increases in 2022.Nevertheless, despite the record rate of inflation, many experts believe that it has begun to slow down, as the monthly growth rate was 0.3% with a forecast of 0.5%. Maybe the Fed will soon have to abandon aggressive tightening of monetary policy.Inflation in the G7 countriesLael Brainard has already announced the first signs of a slowdown in consumer price dynamics, noting that the Federal Reserve will continue raising rates in any case, but it may start reducing the balance sheet not in May, but in June. Her words became a lifeline for the EUR/USD bulls. Assumptions about the later start of the balance sheet reduction reduced the yield of treasuries and supported euro buyers.It is possible that Christine Lagarde's team will also support the euro. There are more and more hawkish voices in the ECB Council calling for a tightening of monetary policy. The heads of the Central Banks of Slovenia, Austria and Belgium believe that two increases in the deposit rate should take place in 2022. This attitude will help EUR/USD to find the bottom and return above 1.09. Nevertheless, trading from forex levels shows that when the day closes below 1.083, the downtrend continues.Indeed, the European currency has a lot of problems, and even a slight decrease in interest in the dollar does not indicate a change in the direction of movement of EUR/USD. 
Data from the Comex exchange indicate a decrease in the cost of copper. By 5 a.m.GMT, the price of a pound of metal dropped to $4,7105, or 0.75% compared to its value at the close of trading the day before. Yesterday, trading on the London Stock Exchange ended with a rise in the price of industrial metals. The cost of copper rose to $10,367.50 cents, or 0.5%. Aluminum rose to $3,551, or 3.4%. The price of zinc rose to $4,149, or 3%. One of the factors that has a significant impact on the markets is the US currency exchange rate. Its growth makes it unprofitable to purchase raw materials for investors with other currencies, including metals. Today, the dollar index is showing growth. It has already risen by 0.13% to 97.91 points. Statistics from China also contribute to the fall in the price of copper. Economic activity in this country is declining due to the deterioration of the epidemiological situation. In this regard, a reduction in demand for copper is expected. 
In order to limit the supply of Russian gas, the European Commission intends to gradually increase the volume of liquefied natural gas purchased in the United States. According to the plans discussed in 2021 on the import of American LNG, it was assumed that this year its volumes would be at the level of 22 billion cubic meters. Now the EU has agreed with the United States to increase this figure by 15 billion cubic meters. In total, the gas purchased in the United States in 2022 will replace 10% of Russian annual gas supplies. Thus, the abandonment of Russian gas will be carried out gradually. The European Commission plans that in 2023 additional gas supplies will grow to 35 billion cubic meters, which will be possible thanks to the diversification of gas supplies, which are currently being negotiated with international partners. The EU's efforts to enhance energy efficiency and develop renewable energy sources will also contribute to reducing dependence on supplies from the Russian Federation. 
Cryptocurrency Forecast for today. Consolidation and uncertainty of trading in the range of 48051 – 46810 dollars are visible. It is possible that market participants are waiting for US labor market data.The capitalization of the cryptocurrency market by the end of Wednesday amounted to 2.15 trillion US dollars against 1.90 on Tuesday. A negative news background can increase short positions on digital assets.The Norwegian company Opera has added support for Bitcoin, Solana, Polygon and other cryptocurrencies to the browser.Integration of multiple blockchains and second-level development solutions was called a key strategy and part of Opera's mission, which is to introduce millions of users to Web 3.0.Solana and Bitcoin are currently available only in Opera for Android. Their support in the "Crypto Browser Project" will appear in the coming months.The dollar and the cryptocurrency market will be sensitive to the release of the number of initial applications for unemployment benefits, the price index of personal consumption expenditures. The focus will also be on the business activity index (PMI) in Chicago, the unemployment rate and the index of business activity in the manufacturing sector (PMI) from ISM. 
Gold exchange rate forecast for today. The banking metal is still very sensitive to the dollar. The next signal for the market is the US unemployment rate for March. If the current value comes out better than the forecast, then there will be an additional reason for the Fed to reduce the purchase of securities.The US stock market ended Wednesday trading lower on the back of negative dynamics from the consumer services, technology and finance sectors. At the close on the New York Stock Exchange, the Dow Jones fell by 0.19%, the S&P 500 index fell by 0.63%.At the same time, there is an increase in inflation. Consumer prices in Germany, harmonized with EU standards, increased by 7.6% in annual terms in March, according to preliminary data from the country's Federal Statistical Office (Destatis).Analysts surveyed by Bloomberg, on average, predicted a rise of 6.8%. Trading Economics experts expected growth of 6.7%. In February, inflation in the country was 5.5%.As for Japan, retail sales in February decreased by 0.8% compared to the same month last year, according to data from the country's Ministry of Economy, Trade and Industry. The drop was recorded for the first time since September last year. Analysts on average expected a decline of only 0.3%. 
Forex. Pound/Dollar (GBP/USD) forecast for today. The pair gained a foothold in the area above the European support of 1.3127. At the moment, there is a strong resistance at the level of 1.3202.The yield of 10-year UK bonds is near the March maximum values at 1.668%.This time, the US dollar was under pressure against other world currencies. The US economy in the fourth quarter of 2021 increased by 6.9% in terms of annual rates, according to the final data of the US Department of Commerce. Earlier, a 7% rise was announced.Experts on average expected an upward revision of the indicator to 7.1%, according to Trading Economics.According to the revised data of the Ministry of Trade, consumer spending, which accounts for two-thirds of US GDP, increased by 2.5% in the fourth quarter, not 3.1%, as previously reported.Exports soared by 22.4%, imports increased by 17.9% - instead of the previously announced 17.6%.On Tuesday, market participants are likely to wait for the reaction of the pound after the publication of UK GDP, housing price index, business investments, investments of commercial enterprises. The US labor market data will also affect the course of trading. 
Forex. Euro/Dollar (EUR/USD) forecast for today. Positive trading dynamics was observed throughout the trading environment.The yield on 10-year US bonds has declined from the March highs and is now at 2.351%.The bidding process is still influenced by the hope that the war in Europe will end soon. The recent negotiations between the Ukrainian and Russian sides have created optimism in the financial markets.Meanwhile, the composite index of business and consumer confidence in the eurozone in March fell to 108.5 points against 113.9 points a month earlier, according to data from the European Commission. The indicator value turned out to be the lowest since March last year.Experts on average predicted a more moderate decline, up to 109 points, according to Trading Economics.The decline in the composite index is mainly caused by a decline in European consumer confidence due to rising inflation and events in Ukraine. The indicator of consumer confidence in the eurozone in March collapsed to minus 18.7 points against minus 8.8 points last month, coinciding with the consensus forecast.Today, the focus will be on the data of the Eurozone and the US labor market — the change in the number of unemployed in Germany, the unemployment rate of the Eurozone and the number of initial applications for unemployment benefits in the US. 
Cryptocurrency Forecast for today. Now the digital asset is trading in the range of 48051 – 46820 dollars. After sharp movements in the market, market participants adhere to a wait–and-see position - soon US GDP and labor market data. Financial markets, including digital assets, can react strongly to these events.The capitalization of the cryptocurrency market by the end of Tuesday amounted to 2.11 trillion US dollars against 2.13 on Monday.According to media reports, MacroStrategy, a subsidiary of MicroStrategy, took out a loan for $205 million secured in bitcoins. The loan was issued by Silvergate Bank. According to the terms of the agreement, the loan funds will be used to purchase cryptocurrencies.At the same time, the US Treasury Department proposed to extend to cryptocurrencies the requirements for informing the IRS Tax Service about foreign accounts of citizens with assets over $50 thousand. The relevant document is published on the official website of the department. If adopted, the new requirements will come into force in 2023.Representatives of the Hong Kong Stock Exchange announced the launch of a platform for trading tokenized assets called Diamond. The trading service will use smart contracts, blockchain and cloud computing technologies, thanks to which it will be able to work around the clock.