You know about Apple, even if you don’t use products made by this company. This is one of the most popular and successful brands in the industry of technological device manufacturing. This business generates competitive profits by designing and selling the most mainstream devices. Additionally, the company makes money from the increasing demand for services available in iCloud, Apple Music, and Apple TV+
We all know the success story of this technology giant that started as an enthusiastic idea in the garage of a young student whose name was Steve Jobs. Together with Stephen Wozniak, Jobs founded Apple Inc. in 1976, and 4 years after it went public. If you are interested in forex trading, you can start it with XM Bonus for free.
Is it a good idea to buy Apple stocks in 2022? How to follow the Apple stock news and how to react to the updates? What are the advantages and disadvantages of the asset? These are questions we’ll try to answer in this review.
Table of Contents
Performance of the Company
The total revenue generated by Apple for the first quarter of 2022 reached the mark of 97 billion. With this data, we can’t say the company has been showing impressive performance. The previous year, for the same period, the company managed to generate $111.4 billion. The company was expected to reach $118.7 billion in 2022, but it failed the expectations.
2021 seemed to be a better year in terms of revenue growth. In the second quarter of 2021, Apple Inc. showed great results and outperformed the revenue for the same quarter of 2020 by 93.2%. Total revenue in 2021 blasted through the mark of $365.817, while in 2022, Apple generated almost $100 billion less – $274.3 billion.
The poor performance at the beginning of 2022 might be explained by the declining iPad sales. The company’s representatives say that this shortage is caused by the supply issues of the tool.
Key Events
The company split Apple stocks several times. Here, we are not going to review these splits, we will pay attention to the releases that made Apple Inc. a global brand and, eventually, helped the price of Apple stock go higher.
- In 1998, Apple released the iMac, which quickly became one of the most popular computer devices in the world. iMac sales outperformed all the expectations – its sales were really impressive. Thus, just 3 months after the release, the Apple stock price increased twice – up to $43. Two years after, the stock was closing at $138.69.
- The iPhone is considered to cause the biggest revolution in the manufacturing of the products. It combined key functions of different gadgets, which was a real hit in 2007. A month later after the release, the stock price performed a 15% growth.
- In 2020, Apple released MacBook Air and iPhone 12, which quickly become demanded by customers due to the coronavirus pandemic. These and other product sales increased the year-to-year revenue of the company by 33% and helped the AAPL stock to grow by 32% and reach its historic maximum of $177.57. The Apple stock is traded at $132.
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Pros
- According to the recent earnings reports of the company, the services segment is very fast developing and profitable.
- Apple pays dividends.
- The business model of the company is one of the major reasons why it thrives. It implements integration between its gadgets and services, which helps to attract new customers and keep old ones more loyal.
- Apple is a global brand that will remain popular despite potential financial problems. Products of this company will stay demanded, and this demand will be constantly fueled by the image of the brand.
Cons
- Apple has to do a lot to grow revenue from different divisions quickly. The reason for this is the declining sales of the iPhone. This gadget is the major source of the company’s impact. If it remains dependable on iPhone sales, its stock price might go down.
- The services segment is growing but the obstacles occur to the Apple TV streaming service. It has to compete against real market giants, including Netflix and Disney. As of today, Apple TV hasn’t become a true alternative to these services.
Final Thoughts
Apple is one of the best companies to invest in. The AAPL stock provided revenues to investors even during the times when many other corporations couldn’t cope with the pressure. Apple holds a great share of the technology market, and the company has one of the best-selling brands in the world. Even if the sales of the most demanded products are declining, Apple knows how to make real tech revolutions.
