Siri Security Threats
Apple stock news has recently uncovered issues with security revolving around Siri. The Guardian initially broke this story. Thomas le Bonniec, a former Apple contractor, blew the whistle on the company’s use of Siri to record users. He stated that, oftentimes, Apple took recordings outside of any activation of Siri and that they “were made without users being aware of it.” Most importantly, he revealed that Apple not only gathered information on their users, but on users’ friends and families as well. Additionally, Motherboard has revealed that hackers have had access to iOS 14 code for months. This further adds to Apple’s security issues, prompting users to question their privacy and security.
The New iPhone
More Apple stock news has reported that the company is expected to release four new versions of the iPhone in the fall of 2020. Most expect the release to be pushed back to October. MacRumors speculates that these new iPhones may come with a new physical design, triple lens cameras, and OLED displays. Apple also plans to introduce 5G support, increasing the speed and efficiency of the iPhone.
Apple plans to cut costs with the release of the new iPhone. In a TF International Securities research note issued to investors and on MacRumors, Ming-Chi Kuo, an Apple analyst, said he expects Apple to leave out the traditional wired earphones that come with iPhones. The company hopes that this will usher in a stronger demand for AirPods shipments.
Apple in the Face of COVID-19
Apple plans to reopen stores in Idaho, South Carolina, Alabama, and Alaska, as these states have recently begun to reopen. In a post directed to customers, Deirdre O’Brien stated that “face coverings will be required for all of our teams and customers.” The stores will also require temperature checks at the door, and posted health questions will screen for those with symptoms or who have had recent exposure to someone infected with COVID‑19. Stores reopening could increase sales, and potentially lead to Apple stock surging. Currently, 32 of the 271 Apple stores in America are open. The company plans to open 100 more stores in 21 states this week.
The newest update to Apple’s processing system, iOS 13.5, includes many features aimed at managing technical difficulties caused by COVID-19. Features targeted towards increasing convenience include the ability to use FaceID with a mask and the pass code field automatically appearing after swiping up from the bottom of the Lock screen. Furthermore, this update includes COVID-19 contact tracing, which is meant to help stop the spread of the virus. This process notifies you if you come into contact with someone who tested positive, as well anonymously shares your situation with others that you have come into contact with. However, users have also reported a bug that prevents certain apps from functioning and that the update removed jailbreaks. Despite this, iOS 13.5 provides users with valuable tools aimed to increase their convenience and safety.
Second Quarter Earnings
On April 30, Apple released their second quarter results. Their recent press release stated that the quarterly revenue was $58.3 billion and had an increase of 1 percent from the year-ago quarter. In addition, their “quarterly earnings per diluted share was up 4 percent, at $2.55. The company also credited international sales for 62 percent of the quarter’s revenue. This apple stock news demonstrate the stability of the company, even in the face of a pandemic, and indicate positive forecasts for the future.
Comparing their P/S ratio, we can see a large increase that could demonstrate the high expectations investors have for the stock. These high expectations can lead to an overvaluation of the stock. By looking at the chart below, we can see the price of the stock rose about 20% from the end of March to now. However, the P/S ratio increased much more, rendering this increase the result of a large decrease in sales. As previously stated, the quarterly revenue has increased from last years quarter. This implies that the increase in EV/Revenue stems from an increase in EV.
The stock chart depicts a drop which was most likely caused by the coronavirus. Despite this drop, the stock has regained momentum, demonstrating Apple stock to be a fairly safe and stable stock.