Apple Stock News: Existing User-Base Could Push AAPL Towards Increase in Dividends

Apple Stock News

For the latest Apple Stock News, AAPL closed at $113.30 on Friday, December 9, 2016 with a 0.57% loss, or $0.65 from its previous close of $113.95. per share.


In the past, Apple has been at the forefront of the smartphone industry, which has erected a strong foundation in their user-base. Apple’s operating system (OS) is interconnected through all of their devices, the iPad, iPhone, Macbook, etc., and now that the foundation on their hardware is strong, the tech company can begin expanding further into software. Their OS is popular among users and the company maintains their user-base. There is now new possibility of growth in the service sector of their software. The advantage to expansion in software is that the company can update their software on their own timeline. Apple has to continually release new products around the same time each year, this is not the case with software.

Why is this so important? Software servicing within the Apple OS is recurring and the fact that Apple has it’s on loyal customers, the monetization could prove enormous. The recurring service needs on the OS can help make AAPL increase dividends for their share holders. AAPL already releases a quarterly dividend, which is rare for smartphone markers. The reason is that there is a necessity for consistent investments back into the company for continuous growth. Apple doesn’t have this problem as much because their profit margin is much larger than other smartphones. For example, iPhones cost about $650.00, compared to other smartphones that average about $208.00. Their large profit margin has made it possible to continue to invest in their R&D but also release quarterly dividends. With software advances, the dividend can increase exponentially per share because of the recurring revenue.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

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