Apple Inc (AAPL) was founded in 1976 and is the first American corporation, the market capitalization of which exceeded $ 1 trillion in 2018. This impressive growth in sales, earnings and Apple stock value was driven by strong sales of iPhone products (a series of smartphones running the iOS operating system - a simplified version of macOS optimized for use on a mobile device).
Consumer interest in Apple's most popular iPhone and other technology equipment slowed down, and the company had to work hard to become one of the world's leading digital service providers.
Apple has experienced ups and downs in 2019, but overall revenues have increased.
Revenue breakdown of 5 major Apple products in fiscal 2019 Apple's
service business is led by the App Store and Apple Music.
In May 2019, analyst Michael Olson (of Piper Jaffray) claimed that Apple had radically changed its service business at a cost of $ 502 billion. Growth came when the company began to use the analysis and assessment of each business unit separately and the entire structure - as a whole.
- In 2019, the company's iPhone business accounted for about 54.7% of total sales.
- Apple's growing services segment accounted for approximately 17.7% of revenue.
- Mac brought in 9.8% of total revenue.
- The segment of wearable devices, accessories and equipment for the home accounted for 9.4% of sales.
- iPad — 8,1 %.
Apple 2019
- , Apple iPhone.
- iPhone , 2018 , , .
- 2019 Apple — 260,17 , — 55,25 .
- 2019 4,18 , .
Apple l-lll 2020
- l Apple , : 91,8 22,2 .
- EPS ( ) — 2,58 — 2,21 , .
- , iPhone.
- Apple TV + Apple Arcade + Apple News — , , .
- . 35 .
- 70% Apple Watch .
- Mac iPad – . : 96% — Mac, 97% — iPad. , Mac iPad, . , .
Apple has shown the best results in profit and sales, despite the closure of stores due to the coronavirus.
Apple's 2020 iPhone Profit: What's the Reason for Growth?
Apple surpassed expectations for Q3 earnings and sales by releasing data on July 30, 2020. The ongoing antitrust investigation not only failed to slow the tech giant's downfall, but brought in new customers. The second surprise was the fact that a lot of traffic came not from the segment of services that the company is constantly working on, but from iPhone sales. Smartphone revenues exceeded all expectations.
Apple CFO Luca Maestri explained the strong smartphone sales as follows: “In June, we provided interest-free financing for purchasing smartphones in our stores, in addition to the trade-in, which is now becoming an increasingly common trend. The combination of interest-free funding and exchange makes the product super affordable. "
Recent consumer polls in the United States have shown that iPhone customer satisfaction is 98%.
Promotions, promotions and again "apple" shares
The increased attention to the iPhone influenced the growth rate of the purchase of Yabloko shares. Moreover, Apple announced a 4: 1 share split. Each investor will now receive four shares each. This will bring the price of each share down from the current $ 403 to $ 100. Incidentally, Apple's stock price rose nearly 5% after the close of trading in July, breaking the $ 400 mark.
The decision to split Apple shares will take effect for registered shareholders on August 24, and trading, adjusted for the split, will begin on August 31. This is the first Apple stock split since a 7: 1 split in 2014.
For the first quarter of fiscal year 2020, announced at the end of January, ahead of the COVID-19 outbreak, Apple reported a record $ 91.8 billion in revenue. EPS grew by - 19.4% compared to revenue growth of - 8.9%. This growth was driven primarily by the sale of the latest iPhones, wearables and business services.
Apple shares fell slightly after the fiscal 2020 second quarter earnings were released in March. Apple topped analysts' estimates and also reported profit growth amid the spread of the virus, which was the biggest shock to the global economy since the 2007-08 financial crisis. This helped stocks quickly resume their uptrend.
In the second quarter, earnings per share rose 5.7% on revenue growth of 0.5% amid restrictions on Apple's main suppliers in China and subsequent global store closures. These trends have limited both product supply and consumer demand for many Apple products.
Apple Inc's (AAPL) resilience during the coronavirus pandemic has been demonstrated by the company's share price.
Apple shares are up roughly 73% since mid-March after the market plummeted earlier in the year.
Investor confidence was boosted when Apple surpassed expectations in its quarterly report in April. Investors gained even more confidence that the company would be able to withstand the economic shock when Apple reported third-quarter earnings.
According to the results of the third quarter of fiscal year 2020, Apple's profit amounted to $ 11.25 billion on revenue of $ 59.7 billion.
Apple's Q3 revenue was $ 59.7 billion and quarterly income of $ 11.25 billion, or $ 2.58 per diluted share, compared to $ 53.8 billion in revenue and quarterly net income - $ 10.0 billion, or $ 2.18 per diluted share.
Both revenues and earnings per share were record high in June
- III — 38,0 % — 37,6 % III 2019 , — 60 % . Apple — 0,82 , 13 , 10 .
- — 113 .
- — 81 III 2020 .
- — 21 , 3,7 — 10 — .
- IPhone 11 «» .
- iPad . : 3/4 Mac 2/3 iPad — .
, (EPS ), . Apple 2019 , . Apple , , IV , . , .
Apple —
One of the key metrics that investors have focused on is Apple's service revenue. Apple CEO Tim Cook has expanded into services in recent years, but they still account for less than a fifth of Apple's total revenue. Investor enthusiasm for Apple's long-term service delivery strategy, as well as new product introductions, have helped Apple significantly outperform the market as a whole. For example, the tech giant's total stock return over the past 12 months was 89.6%, nearly nine times the S&P 500's total return of 9.5%.
As mentioned, the focus of investors this quarter may be on Apple's services revenue. The company has focused on providing services as sales of hardware devices, including the flagship iPhone, have been volatile. Apple's services include streaming services such as the Apple TV movie and TV entertainment provider, the Apple Arcade video game seller, news services and digital content stores including the iTunes Store and App Store, and Apple Pay and AppleCare.
They also include many other services that support Apple hardware devices. Service revenues are generally more stable and predictable than product revenues, with services having higher margins. Apple's gross margin on services was 61-65% over the past two years; Apple's gross product margin was 30-34% over the same period. This means that every dollar of service revenue generates roughly double the gross margins.
Services currently account for about 17.8% of Apple's total revenue, but that share has grown rapidly over the past couple of years. For comparison, revenue from services in 2017 amounted to 14.3% of the total. The main source of strength for the company in the second quarter of 2020 was the growth in revenue from services of - 16.6%, which reached a record level of 13.3 billion dollars.
Analysts expect services revenue to remain stable, forecasting 15.4% growth. This shows that Apple's strategic pivot to services is working, even as the global economic shock continues to plague the entire business.
The latest scandalous news from Apple services
- Apple has generated nearly $ 360 million in revenue over the past three years from Fortnite, an online game that is currently battling Apple over App Store fees.
- Epic Games, the maker of Fortnite, filed a lawsuit against Apple on Aug 13, 2020 over a 30% commission on all in-app purchases through the App Store. A week earlier, Apple removed Fortnite from the app store after Epic Games tried to bypass Apple's commission.
- Sensor Tower, Fortnite 133 , App Store 1,2 . 30 % Apple.
- Fortnite 11 , 2020 Google Play 10 . Epic Games Google, 30 %.
In 2011, taking over at Apple, Tim Cook adopted some of the legendary founder's dictatorial tools, but broadly speaking, his style can be called democratic. "The mixed mantra of leadership", "charismatic", "dexterous, consistent, tough", "without Jobs's bold visionary style" - this is how Cook was described, who relied on relationships with employees. Steve Jobs was a creator and creator, Tim Cook is a great organizer and the exact opposite of Steve. The role of the CEO's hands-on role in Apple product development has been greatly reduced because the updated business structure is based on a consensus between top management and developers. According to former Apple employee Beta Fox, “The company is not as crazy on the inside as it used to be. The order is not so draconian. "His subtle leadership style has strengthened his business reputation among employees, but "one word can kill him." “Everyone loves Tim,” Beta says. "At least no one is afraid to make mistakes, as they feared under Steve Jobs."
Here's a quote from the CEO's speech at an online conference in July: “Apple's record June quarter was driven by double-digit growth in both products and services, as well as growth in each of our geographic segments. In turbulent times, this performance is a testament to the important role our products and relentless innovation play in our customers' lives. This is a difficult moment for our society. Apple's new $ 100 million Racial Equity and Justice project and a commitment to reducing carbon emissions by 2030 showcases our principles to the world. According to them, all our deeds and actions should create opportunities and make the world better than it is now. "
“I am confident that Apple's brightest days and innovative inventions are yet to come,” said Apple's father Steve Jobs. Everyone knows about his difficult relationship with Yabloko, connected with leaving and returning. We also remember the criticism that poured out on Jobs for the authoritarian management style, aggressive actions towards competitors, the desire for total control over products, even after their implementation. But we cannot help but remember that not only the birth, but also the rebirth of Apple is associated with the name of a genius. This leap is one of the greatest accomplishments in business history. And Jobs himself is a "visionary" and even the "father of the digital revolution."
As a brilliant speaker, he has taken innovative product presentations to the next level by turning them into shows. A recognizable figure in a black turtleneck, frayed jeans and sneakers evoked a response in all of us. He was at the same time similar to us, and unattainable in the halo of expensive simplicity. He is remembered as the leader with the lowest official salary of one dollar. “I get 50 cents a year for attending work and another 50 for giving presentations,” the multi-millionaire joked. And finally, his idea is alive, his spirit of inevitability, his power of novelty! His ideas serve us, give us a chance to create and strive to be higher than we are now.
Source: megatrends.su