Founded on April 1, 1976, by Steve Jobs and Steve Wozniak, it is now the leading producer of consumer electronics and an economy all of its own. The was valued at over $2.6 trillion in 2022 and brought in $0.4 trillion in revenue making it equal in size to the economies of Thailand and Belgium which are ranked 24th and 23rd largest worldwide. Our dashboard Breaking Down Apple’s Services Revenue estimates the revenue figures for AppStore, Apple Music, Apple TV+, iCloud, Third-party Subscriptions, Licensing, Apple Care, and Apple Pay.
Normally $25 each – click below to receive one report FREE:
Apple’s Services business also saw Gross Margins soar to around 68.4%, an increase of around 400 basis points versus last year. Services Revenue grew by a strong 24% year-over-year, likely enabling better-fixed cost absorption. Apple also likely saw a large percentage of commission-driven revenues such as App sales and subscriptions, which are much more profitable. Apple’s operating expenses rose by just about 12% year-over-year compared to total Revenues which expanded by 21% and this was also a factor that drove its Operating Margin gains, in addition to the Gross Profit gains. There’s a very good chance that at least a handful of the top 10 biggest companies by market cap in 2035 are way down the market cap list in 2021.
- This hearty valuation comes after Apple introduced 5G-capable iPhones late last year.
- «Current iPhone estimates for 2024 remain hittable with 2025 street estimates conservative.»
- Nvidia has been a tech market leader for years now, and its growth seems unstoppable.
Last Big Afternoon of Q1 Earnings Season
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Ginkgo is pushing the field of biology toward the engineering industry, and has labeled itself “The Organism Company” with the mission to program cells like we have been programming computers. Drawing comparisons to Apple, Kelly broke down the Ginkgo vision for me, where Ginkgo aims to serve as the horizontal platform for synthetic biology products (much like the App Store on Apple devices).
Apple MarketRank™ Stock Analysis
The company’s first product was a personal computer known as the Apple 1 but the product line has since evolved to include a wide range of desirable personal computing devices. New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies. The company has guided margins of between 41.5% and 42.5% for Q3, which is reasonably high, considering that FY’Q3 is typically a seasonally weaker quarter compared to FY’Q2. Moreover, Apple expects to see some semiconductor supply constraints for its Macs and iPads over the next quarter, likely putting some pressure on margins. But maybe the most impressive thing of all is how Airbnb is attracting users to its platform. My colleague Jon Quast noted that a mere 9% of users booked a stay during the first nine months of 2020 because of an ad.
AAPL Stock News Headlines
If I had to choose a true longshot candidate to surpass Apple by 2035, it’d be stay-and-hosting platform Airbnb (ABNB -0.74%). Its current market cap is «only» $93 billion, meaning it has more than $2 trillion in ground to make up on Apple over the next 14 years. However, the cards would need to fall just right for Tesla to surpass Apple. The biggest challenge will be maintaining its competitive edge and market share in the U.S. and China, especially with most major auto stocks spending tens of billions on EV and autonomous vehicle research and production.
11,001 employees have rated Apple Chief Executive Officer Tim Cook on Glassdoor.com. This puts Tim Cook in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. Investors of record on Monday, May 13th will be given a dividend of $0.25 per share on Thursday, May 16th. This represents https://www.broker-review.org/ a $1.00 dividend on an annualized basis and a yield of 0.52%. Tim Cook took over the role of CEO in 2011 shortly before the death of Steve Jobs. Cook joined the company in 1988 as Senior VP of Global Sales and went on to become Executive VP of Global Operations before taking on the chief executive role.
For this reason, investors cannot know for certain when supply chain challenges will subside, allowing Apple and its suppliers the ability to operate under more normal circumstances. According to data from IDC, Meta holds the top spot for global shipments of VR headsets, controlling 75% of the market. However, Apple’s entrance into the metaverse could open up another multi-billion dollar opportunity for ig broker review the company as it looks to steal market share away from Meta and other incumbents. Per IDC’s forecast, the market for AR/VR headsets will increase from 9 million units in 2021 to 50 million by 2025. With this recipe of problems, it is easy for investors to lose sight of the bigger picture. It is important to keep in mind that the disorder caused by inflation and supply chain will not last forever.
Five years later, with Apple stock price at an ever-higher $88.99, Apple issued a third two-for-one stock split. At market close on February 28, Apple’s stock price was $44.88 per share. Apple declared that its board has initiated a stock buyback program on Thursday, May 2nd 2024, which allows the company to buyback $110,000,000,000.00 in outstanding shares, according to EventVestor. This buyback authorization allows the company to purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued. The company’s core product line has shifted away from computers over the years and towards iPhones and devices but computing is still fundamental to the business.
In fact, Apple raised the price of its iPhone 12 versus last year’s iPhone 11, making its iPhone 12 Pro models (priced at $1,000 and up) look like better value compared to last year. Think Apple stock is pricey at current levels, but still want to play the upside in iPhone sales? Check out our theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones, iPads, and other Apple devices. Back in 1999, the 10 largest publicly traded companies by market cap included the likes of Lucent Technologies, Nokia, ExxonMobil, General Electric, and Intel.
Additionally, except for the supply-affected iPhone 13/13 mini, the current lead times for the iPhone 15/15 Plus exceed those seen for all other base models. Apple’s Product Gross Margins, or the profits it makes after accounting for direct costs related to making its iDevices, computers, and accessories, rose by around 90 basis points year over year to 35.1%. Although we actually expected margins to face pressure on account of higher costs relating to 5G components on the new iPhones, Apple significantly beat our margin expectations, driven by a couple of factors. Firstly, Apple has a certain level of fixed costs in its product cost structures and with the product Revenue soaring by about 21%, it benefited from some leverage gains. Secondly, Apple’s product mix has been more favorable than previous quarters, with Apple nudging customers towards “Pro” versions of its devices, which likely have thicker margins.