You may know this, but Apple managed to become the first company to surpass three trillion in market capitalization at the start of the year with a stock that exceeded $182 when bought. Since then, however, this success has dried up somewhat so that a quick analysis of the most recent figures shows us that Apple has lost more than 25% of its value in less than six months.
Several factors could explain this capital flight, starting with a lull in the mobile phone market. China is the world’s largest consumer, but the coronavirus has continued to claim victims there even though the epidemic is generally at an end. What’s more, it is in the Middle Empire that Apple manufactures its mobiles, a company that has been damaged by various quarantine periods.
Several solutions in the boxes
The good news for investors who are worried about the future of their bet on Cupertino is that the Californian giant has more than one trick up its sleeve to get out of it. To begin with, its leaders thus looked into the case of another country for subcontracting: the Vietnam. Some service providers have already started to set up and the first iPads could leave the factory there shortly.
With this, you should also know that Apple is placing more and more emphasis on services so much so that this category of income represents the second most profitable for society. Still behind iPhone sales of course, but with crazy growth that could earn up to eight billion dollars by 2025. An estimate by Samik Chatterjee (JP Morgan).
What to expect from the second semester?
The date of publication of the next financial results of Apple is not yet known but the call with the investors associated with it should undoubtedly take place during the last week of July. According to numbers compiled by Bloomberganalysts would have revised their predictions downwards for the occasion and this 7.8 points. Among the reasons mentioned, we can also cite plummeting credit card spending in the United States or a loss of attention in terms of purchases on the App Store.
By: Keleops AG