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.