HOW HEALTHY IS APPLE NOW?
Covid-19 pandemic has changed the world dramatically for almost a year now, altered the look and feel of the cities, and caused the worst economic downturn since the Great Depression in 1929, transitioning to the new global economic normal, “The stay-at-home economy”, and it’s not going away soon.
Although the pandemic has a lot of dark sides such as surging death tolls, front liners being overwhelmed and exhausted, high unemployment rate, and multiple company closures, it also carries a massive opportunity. That’s no surprise for the technology industry benefiting from drawing the bulk of its revenue from the new workplace culture, and staying-at-home people, making their lives tolerable during the pandemic. This new normal caused a gigantic increase in demand of top quality gadgets, resulting to new record highs of tech giants. The vanguard of the group of course is the top performer, Apple Inc.
There is no doubt that Apple would prosper even more amidst the current pandemic challenges. The new iPhone 12 which marks the beginning of 5G upgrade cycle will spur further iPhone purchases, once again accounting for majority of Apple’s revenue.
The heavyweight tech company’s plan for the first half of 2021 includes an impressive 30% increase in iPhone production, which will take its yearly tally to a whopping $230 million!!
The recent sales report of services and wearables have been positive for the tech giant. The third quarter of 2020 witnessed an increase of 21% for its home and accessories unit. There are speculations that the think tanks of Apple are contemplating of coming up with a self-driving electric car. Its discussion with Hyundai has added credibility to these speculations. With this, Apple is all set to become the tech monarch in the coming years. Generally speaking, the global tech leaders are creating a bigger storm which has the potential to dwarf the ones that were created by the dot-com and Bitcoin boom.
When it suffered some setbacks in the initial months of the pandemic, many doubted that there will be no coming back for Apple Inc. However, to everyone’s surprise, the tech monster bounced back from the market crash like a healthy phoenix bird and has been outperforming its competitors in the market since then. IBD Relative
Strength Rating wise, Apple has an impressive rating of 71 out of 99, which puts it on the top 29% of performing stocks for the last 12 months.
How Apple Changed in the Past Decade
When it started its public offering on December 12, 1980, Apple sold its shares at $22 per share. Since then, the stocks have split four times. This means if you had invested for one share of Apple when it all began, by now you would have become the proud owner of 56 shares of Apple with a market worth of $14,896.
Apple’s stock price has compounded at an impressive rate of 18%. Even though the company suspended its dividend pay-outs in 1995, with some brilliant measures of overcoming financial trouble, it reinstated dividend pay-outs in 2012. Currently, the company pays dividend at the rate of $0.77 per share.
Apple Shines Amid the Gloom
Prices of Apple stocks are rising rapidly, hitting all-time record highs, and this is expected to increase even further in the coming months. As can be interpreted from the chart above, Apple stock shows a strong uptrend. Experts and analysts are forecasting it to be extremely bullish and consider it as a good long-term investment. If the current trend continues, the price may break the resistance level and touch the 140 mark.
With plenty of growth potential up its sleeves, Apple is a healthy choice for any smart investor.