Complete Guide to Investing in Apple Stocks for Indians and NRIs
Credit: North Loop
Introduction –
Apple Inc. is an American multinational technology company that develops high-quality consumer electronic products and online services. Its flawless customer experience for all its products and the highest end-to-end customer experience has made it one of the Big Tech companies in the US stock market. Some of the company’s popular products include the iPhone, iPad and Apple Watch. With a market cap of around $2 trillion and revenue of $260.2 billion in AY 2020-21, it has gained a monumental presence in the tech industry.
Reasons to Invest in Apple Stock –
If “should I invest in Apple” or “should I buy Apple stock” is what you are wondering right now, then you should read the following points to understand what the expert analysts think about the company -
Customer relationships & product range – Apple provides flawless customer relationships for its products. Its customers get connected to the brand very easily, and this relationship becomes stronger by the company’s intelligent product range expansion. The impeccable integration between its devices makes it difficult for Apple users to switch to other brands or products.
Cash-rich – Apple boasts of substantial free cash flow after operating expenses and reinvestments and has a healthy balance sheet. At the end of June 2020, it stood with around $194 billion in cash. The company’s stock dividend and annual pay-out also continues to rise with its quarterly dividend more than doubling in the past years to 82 cents per share today.
Growth of service segment – Apple services like AppleTV+, iCloud, AppleCare and others have become the second-largest source for its revenue. As the installed base of its active devices reaches an all-time high, its revenue from digital sales and subscriptions in high-margin software offers like iTunes, App Store, advertising and others has risen 17% year over year to around $13.16 billion.
Growth of revenue from wearables – Revenue from the Apple Watch, iPods, and Beats products have increased by 44% in fiscal Q1. Moreover, with the latest launch of its new range of Apple watches, the revenue from this segment has the potential to increase further and even reach double-digit year over year sales growth.
Network-effect – Apple has built a network effect that allows it to create a continual cycle of new software deployment and services to billions of active iPhone users. Through its network effect, it ensures that Apple users never have to look beyond its products or services. Moreover, ensuring that certain features can get used only when iPhone users are communicating with each other, it has successfully reinforced this network effect brilliantly.
Customer relationships & product range – Apple provides flawless customer relationships for its products. Its customers get connected to the brand very easily, and this relationship becomes stronger by the company’s intelligent product range expansion. The impeccable integration between its devices makes it difficult for Apple users to switch to other brands or products.
Cash-rich – Apple boasts of substantial free cash flow after operating expenses and reinvestments and has a healthy balance sheet. At the end of June 2020, it stood with around $194 billion in cash. The company’s stock dividend and annual pay-out also continues to rise with its quarterly dividend more than doubling in the past years to 82 cents per share today.
Growth of service segment – Apple services like AppleTV+, iCloud, AppleCare and others have become the second-largest source for its revenue. As the installed base of its active devices reaches an all-time high, its revenue from digital sales and subscriptions in high-margin software offers like iTunes, App Store, advertising and others has risen 17% year over year to around $13.16 billion.
Growth of revenue from wearables – Revenue from the Apple Watch, iPods, and Beats products have increased by 44% in fiscal Q1. Moreover, with the latest launch of its new range of Apple watches, the revenue from this segment has the potential to increase further and even reach double-digit year over year sales growth.
Network-effect – Apple has built a network effect that allows it to create a continual cycle of new software deployment and services to billions of active iPhone users. Through its network effect, it ensures that Apple users never have to look beyond its products or services. Moreover, ensuring that certain features can get used only when iPhone users are communicating with each other, it has successfully reinforced this network effect brilliantly.
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Things to remember for NRIs –
If you are NRI who wants to invest money in Apple, these are the things that you must remember –
Repatriation of funds - To repatriate funds that are generated overseas or maintain income earned in India, you must open an NRE or NRO account depending on your requirements.
Repatriation of funds - To repatriate funds that are generated overseas or maintain income earned in India, you must open an NRE or NRO account depending on your requirements.
What is a Non-Resident Rupee (NRE) Account?
This account gets used for saving foreign earnings in Indian rupees. NRE account allows repatriation of overseas income and helps to carry out banking and investment in India.
What is a Non-Resident Ordinary Rupee (NRO) Account?
This account gets used for managing income earned in India and allows full repatriation of interest income. (A limit of $1 million per FY is applicable for repatriation of the principal amount).
Liberalised Remittance Scheme (LRS) – Under the Foreign Exchange Management Act, 1999 (FEMA), you can freely remit up to $250000 per FY for any permissible current or capital account transaction or a combination of both. If you purchase Apple stock, it will get considered as a capital account transaction, and there will be no need for you to repatriate the accrued interest or dividends on the deposits and investments made in the US as they shall remain retained abroad.
DTAA - Double Tax Avoidance Agreement or DTAA is an agreement between countries to prevent double taxation on the same income. That means no income can get taxed twice (in the country of origin and that of residence). The objective of DTAA is not only to grant relief from double tax payments but also encourage foreign investments.
How to invest in Apple shares through North Loop –
Download the App from App store/Play store
Sign up on North Loop
Open an account on the App
Deposit money into your account
Start investing!
(You can even opt to invest in fractional shares)
To invest in Apple stock with North Loop, sign up here.
Sign up on North Loop
Open an account on the App
Deposit money into your account
Start investing!
(You can even opt to invest in fractional shares)
To invest in Apple stock with North Loop, sign up here.
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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.
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