Just a few months the mood of the analysts Wall Street has changed beyond recognition. From the lows of may of last year, Apple shares gained 47%. This week, the value of securities of Apple broke the mark of $134,54, exceeding the historical maximum. What is the secret of the “Apple” giant?
Partly this rapid growth is due to the repurchase of shares. As noted by the Insider.pro, from September 2015, the number of securities in circulation of Apple fell by 6%. Stock market has become smaller, consequently, the demand has increased.
But that’s not the only reason. The real answer lies in the future of the company, not in its past. 2015 fundamentals deteriorate, however, many analysts still recommend its stock for purchase. Some believe in the future growth and believe that this year the cost will exceed $160.
Tim cook and other top managers are constantly being told that Apple is working on “new, amazing products”. However, the current belief of analysts not connected with these representations. Investors believe in the main gadget — the iPhone — and the development of services such as Apple Music, cloud storage, iCloud and the App store.
They believe that the iPhone 8 will be a unique example of innovation in the market. With the advent of the news about the new smartphone of their faith in the company is only growing. This year marks 10 years since the release of the first iPhone, and everyone is waiting for Apple’s significant modernization and reinvention of the device.
At the same time, the business services segment is gaining momentum. Today, there are more than a billion devices running iOS and each of them is a specialized solution for selling music, videos, applications and cloud solutions. In the last quarter, revenue rose 18% to $7.2 billion
According to cook, in 2016, the contribution of services to revenue was $20 billion In the next four years, Apple plans to double that amount. Note: in order to achieve such a result, the company will have to enter the market of mergers and acquisitions. Perhaps its next target will be Disney, however, while interest in Apple movie maker does not show.
Introduced in 2014, the iPhone 6 became a hit due to larger screen and new design. With this device began a new era in the history of the company. Smartphone sales soared as Apple’s capitalization. iPhone continues to be responsible for two-thirds of its revenue.
To replace iPhone 6 came a new generation of smartphones. They were all variations of the original design. The hardware component of the iPhone 6s and 6s Plus, iPhone 7 and 7s Plus has improved, but their size, design and materials were the same. Overall, after the appearance of iPhone 6 the company’s sales began to decline.
Investors clearly hope that the iPhone 8 will reverse this trend. In addition, the success of the new smartphone will be closely linked to the results in the segment of services. So Apple has sold more services, the number of iOS users has to grow. It is necessary to attract new customers with modern, fashionable devices, and the main role is played by the iPhone.
Experts optimistic about this tandem of smartphones and services. Most likely, the optimistic mood will remain until September 8 the presentation of the iPhone, dedicated to the 10th anniversary of the smartphone. If we exclude unforeseen difficulties (like a 35 percent duty on phones assembled in China), it is easy to imagine that Apple’s stock will grow at least until the autumn.