Despite the Pandemic, Apple’s Stock is Performing Better Than Ever — From Apple Park
Despite the global crisis, Apple’s stock is performing stronger and better than ever.
According to an article by the Wall Street Journal, Apple reported a profit of over 23 billion dollars in the latest quarter, exceeding even Wall Street’s expectations. In almost every aspect, Apple has grown richer and even more successful during the pandemic.
Apple has also expressed confidence that its stock value will continue to climb even once the pandemic is over.
What caused Apple’s stock to do so well?
Apple’s success in the last quarter is a result of the work-at-home trend that’s been in effect since last March. During the period, more workers and students worked from home. As a result, they relied on technology to facilitate their work, with Apple products being many people’s favorite choice of tech. As such, Apple saw a never-before-seen demand for Mac computers as well as an 11% increase in sale of the iPad last year.
So far, the iPhone has been the biggest cash cow for Apple this year. New products such as the iPhone 12 have proven to be a critical success. At first, analyst believed that iPhone sales would rise 42%. In reality, sales rose 65% to $47.9 billion, with the more premium iPhone Pro models taking the lead.
What’s next for Apple?
Moving forward, all eyes will be on Apple as the global economy starts to open up again. Apple will now have to tackle the new hybrid working model where some workers will work from home while others head back to the office. We can expect a slew of software updates and new powerful computers to meet the demand of this new paradigm shift in the workforce.
Already, Apple sees the return to normalcy as a positive thing. The company believes that their other business lines will benefit once the economy opens up, such as their AppleCare warranty service and advertisements, which were both negatively impacted by the pandemic.
In addition, Apple is placing high bets on 5G technology. Last year, the company released their new iPhone 12 lineup all with 5G mobile networks capabilities. CEO Tim Cook, in a meetings called, said that “the 5G cycle is important and we’re in the early days.”
Apple’s new products
Apple is also expected to release the iPhone 13 models this fall. New leaks show that Apple is working on a new iPhone 13 with a redesigned camera and a smaller notch. The phone will look similar to the iPhone 12 model except for small cosmetic changes and a beefier processor.
Analyst Ming Chi Kuo, a longtime Apple follower, also predicts that Apple will release the new AirPods 3 this fall. The AirPods 3 will be a continuation of the AirPods 2 that was released back in March 2019. The AirPods 3 will feature a “smaller stem” and will look like the AirPods Pro except without the ANC feature. Kuo reported that Apple will begin mass producing the AirPods 3 around July to September. That means we can expect a launch date somewhere around late September to early October.
With that said, Apple has a lot of new products in the pipeline that’s sure to excite both consumers and investors.
What should I worry about?
Many tech companies are having a hard time manufacturing their products due to a global microprocessor shortage.
Apple has been able to avoid this problem, but moving forward, the company has to work nimbly to meet the high demands for their products.
In addition, Apple is tangled in heated legal battles, the most prominent one being with Epic Games and their flagship mobile game Fortnite. While the case is still ongoing, many investors will see whether Apple can survive scrutiny over their own App Store.
In conclusion
Apple is in a good position thanks to high demands for their products as well as the myriad of new products that are down the pipeline. So far, Apple’s stock is looking better than ever.
By the looks of it all, Apple is coming off strong even in the midst of a global pandemic.
Originally published at https://www.fromapplepark.com on April 29, 2021.
