Apple Incorporation is a company based in the United States. The company designs, produces, and sells consumer electronic devices and complementary services around the world. The company is known for its iPhone, iPad, and Mac product lines along with accessories like Airpods, Apple Watch, and Home Pod. The company also offers its customers with services like Apple TV+, iCloud, Apple Care, Apple Music, and many others. The company was founded in 1977.
Why You Should?
- Apple’s vertical integration will benefit the company’s investors as the company will be able to find new opportunities and efficiencies, which will lead to more profitability. Some examples of this integration include the Apple silicon chips found in their Apple Watch, AirPods, iPhones, iPads, and many others. Apple services is another great example of the company wanting the best for its customers as well.
- Apple has an extremely strong product line. They have iPhone, iPad, and Mac models at every price level and have some of the best services to go along with these products. This strong and wide-ranging product line will drive the company’s future growth across all of its markets. This will also benefit investors in the company.
- Apple has one of the most recognizable brands in the world. The classic Apple logo which can be found on the devices that people use every day is known for its luxury and ease-of-use. Furthermore, the company is also known for its great privacy and security, as well as a solid performance. This strong brand recognition allows for the company to gain and retain more customers. This will also benefit investors in the company.
- Apple has delivered strong quarterly financial results for its investors for quite some time now. It is one of a handful of tech companies that investors can rely on to continue to deliver quarter after quarter. A company like Apple is a great first investment option for a new investor just getting into the market because it is an extremely solid company to have in your portfolio in my opinion.
- Many people see Apple for its expensive iPhones and Macs that the company sells. However, there is something behind those devices which are driving a lot of profitability and growth opportunities. This is the company’s services sector. Once someone buys an iPhone, Apple can still have some recurring revenue from this customer by offering various subscriptions for its streaming or iCloud service. This is growing quickly and will benefit investors as well.
- The company has reported rising revenues and profits over the past couple of financial years due to the reasons mentioned above. This has helped the company further expand its presence across the markets that it serves and has also benefited investors in the company as the stock price has risen over the past couple of years. In the financial year of 2020, the company reported revenues of around 274.51 billion and profits of around 57.41 billion. Both of these metrics are higher than what the company reported in the financial year of 2019 when they had revenues of around 260.17 billion and profits of around 55.26 billion.
Why You Should Not?
- Apple faces tough competition from many large companies. Some of these companies include Samsung and Huawei as well as other companies like Google, Netflix, Disney, Spotify, Bose, and many others. This competition might hurt the company and its investors in the future.
I think that Apple is one of the best long-term investments in a portfolio because of its vertical integration, its strong product line and brand loyalty/recognition, its history of consistent and strong results, its growing services sector, as well as rising revenues and profits. However, tough competition might hurt the company in the future.