Apple Stock News: The Race to be the First Trillion Dollar Company May Depend on China

Apple Stock News

The race to get the title of first trillion dollar market cap is getting closer to the finish line.  Apple is sitting pretty with an $868B market cap.  Alphabet Inc. (Google) is in second place at $712B.  Amazon is in third at $556B.  Facebook is in fourth at $512B.  But Apple hasn’t always been in the lead.  It was temporarily overtaken by Alphabet Inc. in 2016.

What makes Apple the favorite in this horserace?  It’s not valuation.  Since Apple’s biggest driver is the iPhone, they are priced more like a hardware company.  That’s why Apple’s PE is 18 whereas Alphabet’s is 37, Amazon’s is 294, and Facebook’s is 34.  Although, Apple is investing heavily in its high growth Services business which could help to increase Apple’s P/E multiple in the future.

The main reason Apple is in first place is the tech giant generates so much darn profit.  They earn the vast majority of the profits of the entire smartphone space.  One significant differentiating factor that has helped them do this is their success in China.  Out of the four tech behemoths mentioned above, Apple is the only one that has truly flourished in the People’s Republic.  China is too big to ignore with 20% of the globe’s population.  In Apple’s 2017 fiscal year, they generated $44.8B in revenue from Greater China.  Even though that number decreased 8% YoY, it still amounted to 20% of Apple’s total revenue.  That 20% figure is much higher than the Chinese revenue generated from the other three tech titans.

Facebook doesn’t operate in China.  Alphabet does operate there, but many of its core services are severely restricted.  Amazon operates there as well, but is not even close to becoming a major player.

The Middle Kingdom’s significance to Apple has definitely incentivized them to keep the Chinese regulators happy.  This results in Apple removing hundreds of VPN apps from the Chinese App Store as well as building a data center in China to house Chinese users’ data.  Apple may not always like the Chinese regulations, but they certainly aren’t pulling out of China anytime soon.

For the latest Apple Stock News, AAPL closed at $169.01 per share on December 6th, 2017. It generated losses of 0.37% from its previous close on December 5th, 2017, when it closed at $169.64 per share.

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Apple Stock News: Apple’s HomePod to Rival Amazon’s Echo

Apple Stock News

For the latest Apple Stock News, AAPL closed at $144.09 on, July 7th, 2017. It had a gain of 0.99% from its previous close on July 6th, 2017, at $142.73 per share.

Apple Stock News

(Source: Apple)

Last month, Apple announced the launch of the HomePod. The HomePod is essentially both a state-of-the-art speaker and a smart assistant that is capable of answering user queries. Together with Apple Music, users will have instant access to one of the largest music catalogs in the world, 40 million songs to be exact. Perhaps most impressively, the device is able to sense the room and tune the music all by itself. The HomePod will be available for purchase in December and is accompanied by a $349 price tag.

According to new data from Raymond James, consumers have shown more interest in Apple’s siri-powered HomePod speaker than they did in the Apple Watch when that product was first released. Suggesting that the HomePod will be a bestseller this upcoming holiday season. 14 percent of iPhone owners plan to buy a HomePod according to a research note published by Raymond James. When the financial services firm conducted a similar survey prior to the launch of the Apple Watch, a mere 6 percent of iPhone owners were interested in buying the product. Apple’s “other products” category, which includes the Apple Watch, Beats Speakers, AirPods, and more, increased 31 percent year on year. Raymond James anticipates that not only will this growth continue but that the HomePod could help the category.

The bad news for Apple: the HomePod will compete against existing smart home products including the Amazon Echo. However, a combined 19 percent of iPhone owners plan to buy either a HomePod or a Beats product ahead of the 16 percent planning to buy an Echo. Meaning that Apple actually comes out ahead of the Amazon Echo in regards to consumer purchase intention.

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Apple Stock News: Apple Backs Foxconn to Buy Chip Business

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.93 on Monday, June 5th, 2017. It had a loss of 0.98% from its previous close of $155.45 per share.

Apple and Amazon are reportedly teaming up with Foxconn in its bid for Toshiba’s semiconductor business, according to Foxconn Chairman Terry Gou. This unit is the world’ second-largest NAND chip maker. Specifically, Foxconn’s bid for the business has a valuation of $18.2 billion. Foxconn is a multinational electronics contract manufacturing company with its headquarters in Taiwan.

Apple and Amazon have provided financial backing for the bid, though whether it was in the form of a direct investment in the business or financing for the deal is undisclosed. In particular, Foxconn is a major supplier to Apple. For instance, the company provides electronics components and device parts Apple products such as the iPhone. Moreover, Toshiba’s NAND flash memory chip business produces chips suitable for smartphones and cloud computing data centers. This aspect can explain Apple’s interest in backing Foxconn’s bid.

If the deal goes through, this can be an opportunity for Apple’s smartphone and cloud computing businesses. Foxconn’s chairman is reportedly very confident about securing the deal. However, there may also be political complications due to Foxconn’s ties to China, which may not be favorable in the eyes of Japanese regulators. On a positive note, with US technology giants, Apple and Amazon as backers of the deal, their presence may move the Japanese government to reconsider interference.

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Apple Stock News: Developing New AI Chip

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.61 on Friday, May 26th, 2017. It had a loss of -0.17%  from its previous close of $153.87 per share.

Artificial Intelligence (AI) has been among the most exciting technology to be utilized in recent years. Looking to take artificial intelligence to the next level, Apple is developing, Apple Neural Engine. This new processing chip will expand Apple product’s capabilities beyond Siri. The new processing chip will handle tasks normally used by humans such as facial recognition. Apple first incorporated AI in 2011 when Apple introduced Siri to their smartphones.

Apple is attempting to play catch up with Amazon and Alphabet. Amazon’s Echo and Google’s Home digital assistants has given these companies the edge in utilizing the technology. AI is the future for Apple.  The Apple Neural Engine in an iPhone would relieve demand from its main processing unit and its graphics card. Although this may increase weight, the savings in demand for performance could save in battery life.

The new chip will be discussed at the upcoming developer’s conference in June. Apple is also scheduling to release its latest operating system, the iOS 11.

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Apple Stock News: Apple and Amazon Bury the Hatchet

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.10 on Wednesday, May 12th, 2017. It had a gain of 1.40% from its previous close of $153.95 per share.

 

Before Tim Cook became Chief Executive Officer at Apple, the company’s website offered 14 products. Fast forward seven years, the product offerings have blossomed to 27, available in over 200 different versions. Post Jobs’ era, this strategy has helped Apple maintain growth, despite stagnation in its most important market, smartphones.

In 2010, iPhone sales made up 39% of revenue with that figure growing to almost two-thirds of total revenue in 2017. Due to the nature of the industry, most consumers are already using smartphones. In order to counter this dilemma, Apple’s other products and services have had to pick up the slack. With the 10 year anniversary of the iPhone fast approaching, there’s much hype about the iPhone 8. With new technologies expected, such as an OLED screen and the removal of the home button, a hefty price tag is expected to land on the iPhone 8.

There’s good news for consumers, with Apple (AAPL) set to re-introduce Amazon Prime Video (AMZN) to Apple TV. Buzzfeed reports that the two tech-giants have settled their differences. In the near future, the Prime Video app will be available on Apple TV.

Furthermore, it is expected Amazon will again start to sell Apple TV devices. Amazon banned third-party sellers from selling Apple TVs and Google Chromecasts (GOOGL) through their platform. At the time, it was argued the devices inspired “customer confusion.”

 

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Apple Stock News: Apple Confirms Plans To Further Invest

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.26 on Wednesday, May 10th, 2017. It had a loss of -0.47% from its previous close of $153.99 per share.

After Apple became the first US company to top $800 billion in value, the tech giant confirmed plans to invest. Apple will invest an additional $1 billion in-to its five-year-old data center in Nevada. The expected hiring of 100 employees and the creation of 300 construction jobs will help stimulate the local economy.

Speculation behind the company’s motivation to expand, stems from desire to increase its iCloud storage capacity and become more self sufficient. Apple’s current predicament finds them splitting cloud infrastructure between data centres of Amazon and its own.

Interesting to note, the Reno Gazette-Journal reports that Apple has more to gain than just increased efficiency. Council has recently approved Apple’s request to build a $4 million shipping and receiving warehouse near downtown Reno. The warehouse expects to bring an additional $6 million in sales tax abatement. Tax rates are at a lower rate, due to the region being classified as a “tourism improvement district.”

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Apple Stock News: New Record for Apple

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.01 on Monday, May 8, 2017. It had a gain of 2.72% from its previous close of $148.96 per share.

Apple Stock News

 

After a record holding in cash equivalent, Apple is again pushing other limits. With more than $800 billion in market capitalization, Apple is reaching new 52 week highs. Leader of the IoT market, Apple never ceases to impress. Customers are preparing themselves for the iPhone 8. These are the latest news, along with a respectable Q2 earnings reassuring Apple investors. The company is financially in a good health. Next stop for the company: achieving a market capitalization of $1 trillion.

Analysts are confident that the company will continue to grow. According to them, there is no doubt that the iPhone 8 will be revolutionary. The financial markets seem to follow the same trend. Thus, the market anticipates a successful release of the iPhone 8, and Apple to be an investment to consider for the long term.

Behind Apple, the company Alphabet currently enjoys a market capitalization of $652 billion. Then, Microsoft and Amazon compete for the third place with market capitalization of $530 billion and $451 billion, respectively.

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Apple Stock News: AAPL in 2017

Apple Stock News

For the latest Apple Stock News, AAPL closed at $116.73 on Wednesday, December 28, 2016 with a 0.78% loss, or $0.91 from its previous close of $115.82 per share.

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On December 30, Apple released information that one of their manufacturers will be opening an Apple factory in Bengaluru, India. The production from this factory will begin in April of 2017. The tech giant plans on cutting production by 10% on iPhones this year but even with the cutback, analysts are bullish on AAPL. Twenty-six analysts have placed a buy rating for AAPL out of thirty-two. Since May, the share price on APPL has gone up 29% from its low, but as of this weekend, APPL began to fall back down from $117.26 on December 27, 2016.

There are a few things that Apple can do in the new year in order to continue their growth. Amazon has come out with their Amazon Echo, a portable device akin to Siri. However, Amazon Echo has features that trump Siri. Amazon Echo can:

  • Plays all your music from Amazon Music, Spotify, Pandora, iHeartRadio, TuneIn, and more using just your voice
  • Fills the room with immersive, 360º omni-directional audio
  • Allows hands-free convenience with voice-control
  • Hears you from across the room with far-field voice recognition, even while music is playing
  • Answers questions, reads audiobooks and the news, reports traffic and weather, gives info on local businesses, provides sports scores and schedules, and more using the Alexa Voice Service
  • Controls lights, switches, and thermostats with compatible WeMo, Philips Hue, Samsung SmartThings, Wink, Insteon, Nest, and ecobee smart home devices
  • Always getting smarter and adding new features, plus thousands of skills like Uber, Domino’s, and more

Retrieved from Amazon

To compete with Amazon, Apple must come up with a better version of Siri, in speaker form. There will be a race to partner up with Beats by Amazon, Google, and Microsoft. Apple’s best bet to beat the Echo is by winning the race for Beats.

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