Top Apple Stock News: Apple’s Passenger Cars Strategy 2024 – Potential Competition for Tesla
Top Apple Stock News: Apple shares rose 1.24% on the day. At the same time, Tesla fell to a session low (6.5%). This picture is linked to Apple’s announcement of its 2024 target to produce passenger cars. According to www.reuters.com, the company will strive to create cars for consumers using its own batteries. It took Elon Musk’s Tesla more than 10 years before it finally turned into a profitable car company. From the chart below that Tesla has had incredible growth in revenue over the last 10 years, growing from about $15 million in annual revenue in 2008 to over $26 billion in the recently completed 2020 calendar year. The analysts expect for 2020 a net profit of 952 million USD.
But with its own breakthrough battery technology, with enough resources, Apple is potential future competition for self-driving car technology in the world. Apple Inc. is moving forward with self-driving car technology and is aiming for 2024 to launch a passenger car that could include its own revolutionary battery technology.
Apple’s Earnings in China Reached $7.95 bill. in Q4 2020 – Short Term Recovery in Apple Phone Sales
On one hand, most economies have shrunk as a result of the coronavirus crisis. On the other hand, China reopened quickly after the lockdown and is recovering faster than other countries. According to www.globaltimes.cn, China’s GDP growth rate will accelerate to 7.5% in 2021.
A recovery in Apple phone sales will benefit in the short term. Stocks jumped in response to Apple now targeting 96 million iPhones in 2021, up 30% from last year. The revenue figure may increase by 20% on an annualized basis. Much of the apparent growth in demand is coming from China, according to Wedbush Securities analyst Dan Ives. Europe and Greater China are two other major markets for Apple. According to figure 2, the Revenue of Apple by Chine was $7.95 bil. in the 4th quarter of 2020.
In greater China, Apple’s reported revenue returned to growth in 2020 with revenues of $13.58 billion, rising from $13.17 billion last year. That amounts to a 3.1% earnings growth rate year-over-year. Apple saw double-digit iPhone growth within mainland China. China is the largest and most lucrative market by far for Apple and much of the profit and demand for iPhones comes from China. Of course, the economic recovery in China plays an important role in the Apple stock market. The positive outlook for China’s economic recovery boosts the benefit of the Apple stock market in 2021.
COVID-19 Crisis Influence on Apple’s Financial Results 2020
Apple’s net profit was $ 57.4 billion on revenue of $ 274.5 billion for the 2020 financial year (FY) (as of 09/26/2020). Net income rose 3.9%. Revenue increased by 5.5%. Revenue from the Product Division was up 3.2% and represents about 80% of Apple’s total revenue. Among its products, the iPhone accounts for 50% of total revenue; Mac (10%); iPad (9%); and wearable devices, home, and accessories (11%).
According to www.cultofmac.com, Mac sales hit $7.1 billion in the quarter, up a whopping 22% year-over-year.iPad sales during the April-to-June period totaled $6.6 billion, a 31% rise year over year. Wearables revenue increased by 17%(hit $6.5 billion). Apple services went up to $13.2 billion, an increase of 15%. Revenue from iPhone sales totaled $26.4 billion during the quarter, up 2% annually.