by winston » Thu Jul 02, 2020 8:08 am
not vested
Sometimes the simple investment is the smart one
Apple's share price has popped roughly 50% over the past three months as investors have looked to tech stocks as a type of investment haven during the pandemic. But there are plenty of reasons why Apple will continue to be a great investment long after this tech-stock bump has faded.
For example, the company's wearable devices segment (which includes its home and accessories products), reached $6.3 billion in sales in the second quarter, thanks to its popular Apple Watch and Airpods lineup.
Apple's wearable future is brighter than ever, as the company continue to release new iterations of popular devices, like its AirPods Pro, and build on its already-impressive 29% market share in the wearable tech space.
Aside from wearables, Apple has a tremendous opportunity with its budding services business as well, thanks to its App Store, Apple Music, Apple News+, Apple TV+, and Apple Arcade.
Services revenue reached an all-time high of $13 billion in the most recent quarter, and some projections put the company's annual services revenue at $100 billion by 2024.
Adding to all of this is the fact that a 5G-enabled iPhone could spur new demand for the company's smartphone, and usher in what many call an upgrade supercycle among current iPhone users.
While the iPhone isn't as important to Apple as it used to be, the demand would not only give Apple additional device revenue, but also many years' worth of services and wearable revenue as well.
Finally, Apple proved that the company still has a very forward-looking approach to its devices and services when it announced at its WWDC20 conference that it's switching its Mac computers from Intel chips to its own Apple-designed silicon.
The move may be subtle to most users, but investors should see it as yet another way for Apple to consolidate even more control over its products, and likely make them better and more efficient so that it can continue to outpace its competitors.
When you add all of this up and throw in Apple's bent toward massive share repurchases, this tech giant looks as strong as ever and well-positioned for its next season of growth.
Source: Motley Fool
It's all about "how much you made when you were right" & "how little you lost when you were wrong"