After the great 2019 business, everyone itch for the tech giant to see if Apple can add another chapter of success in 2020 or not. Apple shares soared 86% in 2019. With no surprise, Apple stocks are on pace for its best year since 2009, and the company still has the room to run 20% higher profits in 2020 as well.
The majority of us love Apple stocks, and it is equally pleasing the investors for a year especially. In the years since Tim Cook has taken over the charge, the company is returning more cash to stakeholders, and more investors are interested in the purchase of its shares.
With the year over year comparison, Apple is likely to increase its growth with the iPhone 11 series, Apple Watches, and wireless AirPods, in 2020. With the expected release of innovative Apple AirTags with which users can track devices, the company is in the watch list of many tech consumers.
In 2020 and beyond that, Apple stocks will be rewarded with a “proper tech multiple” as the company will have its most significant iPhone upgrade cycle with 5G connectivity. This thing will make the investors realize Apple’s combination of hardware and services as a high-visibility and make them invest in Apple stocks more, realizing it’s the high-earning sticky business.
Why is Apple more profitable?
Which brand has one of the most loyal customers? Apple would never be the wrong answer. Since Apple devices are more like other devices in terms of specs, memory, and processing components, then how is the business taking in an outsize portion of industrial profits? The reason might be is that Apple is the only brand that elevates its name above mere technical excellence. Despite the high prices, people prefer the brand since Apple has an unbeatable market allowing it to take in high operating profits.
One other reason is that Apple has vast international distribution networks. Many telecom giants around the world have one of its kind of relationship with Apple to sell its products globally. Benefiting from such a vast distribution network, Apple is in easy access to many, earning profits with massive sales of its units worldwide.
How did Apple change with time?
Jordan Peterson once said, “To master new technology, you have to play with it.” Apple has developed the brand name carrying itself playing through different eras. It all started with personal computers, and later it expanded to iPods and iPhones. Then Apple moved its focus to iPad and Apple Watch in 2015. With an extensive product line, Apple ended up with $260 billion in revenue by the end of 2019. The continuous advancement and high-end profits have always made Apple stocks at the top of investors’ choice, and this is the reason that they are best to buy in 2020.
Why are Apple stocks best to buy in 2020 and the future?
With the outbreak of coronavirus, the shipment of many smartphones around the world slows down, affecting the sales and profits ultimately. In the times when everyone decided to remain shut down till the fear is over, Apple chosen to grip the market though Foxconn slowed the manufacturing work, Apple continues to stay on the top. Amid Covid-19, Apple has just launched the 4th gen iPad Pro available from March 25.
Apple reporting as dead, and iPhones exaggerated to no more, but then the company’s quarterly earnings of 2019 report the highest quarterly revenue ever. This whole thing proved that when all others were busy with their fears, Apple was working hard to remain at the top. With the launch of the iPhone 11 and iPhone 11 Pro, the demand increased, and it resulted in a total of 7.6% of the increasing growth of company sales.
Apple’s wearables, home, and many other accessories from the company are playing an essential role in the growth, increasing by 37% last quarter, accounting for approximately 11% ($10 billion) of the total revenue.
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In wearables, 31 million Apple watches were sold in 2019, setting a record. Apple AirPods, and it is the latest version AirPods Pro, also contributing to the company’s growth and capturing market beyond the imaginations. With the other wireless earbuds in the market, Apple’s AirPods remained first in the race as they became the must-haves over time.
Apple made the goal to double its 2016 revenue by the end of 2020, and in a first-quarter conference call, the company reported that it has already reached the benchmark based on its services.
The company has increased revenue growth by 17% with just its services. The services include cloud services, music, payment services, App Store, and Apple Care. With the start of Apple Card, Apple News+, Apple Arcade, and Apple TV+, the company has captured a large audience and is predicting to grow year by year.
Apple stocks will fetch a favorable valuation
The huge promising success factor in wearables and services and the consistent annual increase in the revenue of Apple attracts the investors slowly. With the growth of the company, investors are presuming to invest in Apple stocks. It is just not the screaming buy but a boost to moderate valuation that the Apple stocks bring to the investments. The investors also opt for the opportunities to earn market-beating profits with a stake in the world’s top tech stocks.
Many investors are willing to buy as many shares of Apple as they can. Like Warren Buffett accumulated Apple’s shares for an estimated $36 billion, back in 2016 and still aims to buy 100% shares of the company. Buffett sees leadership, customer loyalty, and the eco-friendly system as the main reason for his interest in the company’s shares. So it is with other investors who have some similar goals to have an interest in Apple Stocks.
People, fearing the short-term disruption to Apple’s business due to coronavirus, whether their investment will be fruitful or not. They are a suggestion to all of them to buy Apple’s stocks still as all the odds are in favor of the company and soon will be back in the form, adding more value to your investment than expected.