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Giants Of Technology: A Look at Apple Inc. (AAPL)

 

By Daniel Asikpo Oct 06, 2023

 

You've probably heard, seen or used some of Apple's products or services and you are wondering why they are always praised to be exceptional. Its globalization is one thing you should not undermine as Apple Inc. has grown to be a world influencer technology company.

 

 

As one of the most unique and successful technology companies of our time, AAPL enjoys a high level of attention among investors and traders. No wonder the Oracle of Omaha Warren Buffett called this company an 'economic moat'.

 

 

What is Apple Inc? 

 

Known to be the world's largest and most influential technology company, Apple Inc. is a multinational technology company based in Cupertino, California, USA. Apple Inc. designs, manufactures, and markets smartphones, tablets, personal computers, and wearable devices. Apple Inc. also offers software applications and related services, accessories, and third-party digital content. Their product portfolio includes iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV. It also goes as far as providing advertising services, payment services, cloud services, and various consumer and professional software applications such as iOS, macOS, iPadOS, watchOS, iCloud, Apple Pay, and AppleCare.

 

History of Apple Inc.

 

Though many relate Apple's founders to Steve Jobs and Steve Wozniak, others have gone ahead to include Ronald Wayne as one of the founding fathers who brought this company to a reality in 1976. Apple was launched in Jobs' parents' garage, initially focused on building and selling the Apple I, a personal computer designed by Wozniak.

 

Apple II was the next invention in 1997 and marked a significant milestone for the company. It was one of the first highly successful mass-produced microcomputers, featuring colour graphics and expandable memory.

 

Steve Jobs Exit and Return to Apple Inc.

 

There was a rise and fall scenario in the 1980s. It happened after the launch of the Macintosh in 1984. Macintosh was famously known as the "1984" Super Bowl commercial, though the invention did not live up to its expectations due to other technological competitors in the then market. It is assumed to have led to internal conflicts resulting in Steve Jobs leaving Apple in 1985, and the company faced a period of decline.

 

Steve Jobs returned 12 years later (1997) with good fortune through the acquisition of NeXT, a company he left Apple in 1985 to build thus expanding Apple's company brand. He became CEO and initiated a series of product innovations;

 

iMac and the Digital Hub Strategy

 

The iMac in the late 1990s, was a pivotal product. After its release in 1998, Apple began focusing on the "Digital Hub" strategy, making Macs the centre of digital life which led to the introduction of the iPod in 2001 and iTunes.

 

iPhone

 

This has been a great leap to the Apple industry as the iPhone's introduction in 2007 revolutionized the smartphone industry. The iPhone is a triple combination invention having a phone, an iPod, and an internet communicator into one device, leading to immense success.

 

Indeed I must add, that Apple has played a significant role in revolutionizing the consumer electronics and personal computing industries. It is renowned for its design aesthetics, user-friendly interfaces, and a strong ecosystem that integrates hardware, software, and services. 

 

What is AAPL?

 

Apple inc. AAPL is a ticker symbol that Apple is publicly traded on the NASDAQ stock exchange. National Association of Securities Dealers Automated Quotations (NASDAQ) is an American stock market that handles electronic securities trading around the world.

 

AAPL trading information

Here is a brief overview of AAPL in NASDAQ

 

Primary Exchange: NASDAQ 

Ticker: AAPL (Apple Inc.)

Country: U.S. (United States of America)

Currency: USD (United State Dollar

 

Regulated Trading Hours

 

Trading hours Information

The regulated time to trade AAPL in NASDAQ is;

 

Main: 9.30 am to 4:00 pm ET (Eastern Time), Mondays to Fridays

Pre-market: 4:00 am to 9.30 am 

After-market: 4:00 pm to 8:00 pm

 

AAPL listing Date on NASDAQ

 

AAPL was first listed on the NASDAQ Global Market on December 12, 1980. The listing took place four years after AAPL's founding, with a share price at Initial Public Offering (IPO) of $22. AAPL has undergone five stock splits since it started trading.

Market Overview of Apple Inc.

 

Apple Inc. has stood out as the world's top most valuable technology brands. In 2022, the brand value of Apple Inc. was $ 880.46 billion. This massive business growth is due to gaining attention from investors and traders through a strategic vision that transcended simple desktop computing to include mobile devices and wearables. The American continent is known to be the largest market segment for Apple Inc. Its worldwide revenue was $394.3 billion in fiscal year (FY) 2022. Being an innovative company, Apple Inc. aims to create products and services that meet the public's needs. 

 

What is Apple Inc Line of Business?

 

Although the iPhone is Apple's most popular and profitable product, accounting for about half of its total revenue. Apple Inc. mainly centres on technology with diversified product lines like the iPhone, the iPad, the Mac, the Apple Watch, the AirPods, and the HomePod. It is a strategic business company that targets different segments of customers through production and marketing https://icoverage.io/B-Finance/Marketing of different models of iPhones, such as the iPhone SE ( for budget-conscious users), the iPhone 12 ( for mainstream users), and the iPhone 12 Pro (for premium users). The iPad and Mac put Apple Inc. as one of the top competitors in the production of tablet and personal computers,  offering high performance, design, and user experience. Exception of top-class products, Apple Inc. provides services such as Apple Arcade, Apple Pay, Apple Music, iCloud, Apple Fitness+, and Apple News+. 

 

Competitive Edge

 

The first Apple early competitor was IBM (International Business Machines Corporation) which rivaled Apple Inc. in the 1980's. Apple managed to survive this rival over time. Nevertheless, Apple currently still faces intense competition from other technology companies such as Samsung, Huawei, Google, Microsoft, Amazon, Sony, Spotify, Xiaomi, Dell, HP and Lenovo. However, many other companies challenge Apple in different markets and regions, as it is involved in both product and service markets. The company strives to differentiate itself by focusing on quality, innovation, customer satisfaction, and social responsibility.

 

Apple iOS. vs Google Android

 

Apple iOS. and Google Android are two of the most popular and influential players in the smartphone market. They have been competing with each other for over a decade, and have both shaped and changed the mobile industry with their innovations and strategies. However, they also have many differences in terms of their operating systems, products, services, and business models. Here are some of the main points of comparison between them;

 

Market share 

 

Research shows that in the US smartphone market, Apple has a higher market share than Google. Although the top four apps on both platforms were made by their respective parent company, 75 percent of the top 20 apps on iOS were made by Apple, while Google made 60 percent of the top apps on Android. In the global market, Android stands out to dominate with a much larger market share than iOS, with about 72 percent of smartphone users using Android devices in 2021, compared to 26 percent using iOS devices.

 

User satisfaction

 

When viewing user operation satisfaction, Apple’s default apps generally have a higher user satisfaction rating than Google’s default apps, especially in categories like calendar, browser, video calling, and messaging. On the other hand, Google is not to be left behind as Google’s apps also have some advantages over Apple’s apps, such as Google Photos’ storage and smart features, Google Maps’ accuracy and navigation, and Google Translate’s versatility and integration.

 

Revenue

 

When comparing the US smartphone market, Apple has a higher revenue than Samsung (Google’s main partner in the Android ecosystem). Nearly 43 percent of US consumers reported purchasing Apple-branded smartphones in the last year vs 29 percent purchasing Samsung. Apple also has a higher average selling price (ASP) than Samsung, with $829 vs. $486 respectively. However, Samsung has higher revenue than Apple in the global smartphone market, with 19 percent of the market share vs 15 percent for Apple in 2021.

 

Business model

 

Investopedia research shows that Apple and Google have different business models that affect their competitive edge in the smartphone market. Apple’s business model is based on selling premium hardware products that generate high profit margins and create a loyal customer base that is willing to pay for its services and accessories. Whereas, Google’s business model is based on offering free or low-cost software products that generate revenue from advertising and data collection. Google does not charge for Android in the US, which is one of the chief reasons manufacturers are drawn to it.

 

Oracle of Omaha calls Apple Inc. an 'economic Moat'

 

Warren Buffett, often referred to as the Oracle of Omaha, has used the term "economic moat" to describe companies with a competitive advantage and Apple Inc. has been one of those. Just as a moat around a castle provides a barrier and protection from external threats, an economic moat helps shield a company from competition and economic downturns. This term reflects his belief in investing in companies with durable competitive advantages.

 

Is Apple A good business to invest in?

 

There has been much investor recognition of Apple’s success over the past few years as the company has reported several record-breaking quarters of big growth in all of its product lines. Another thing to note is Apple’s cash flow;  which makes the stock a haven during times of market uncertainty.

 

Apple's initial share price was $22.00 per share when it went public through an initial public offering (IPO) on Dec. 12, 1980. However, the stock has split four times since then, which means that the number of shares has increased while the price has decreased proportionally. The splits were as follows:

 

June 16, 1987: 2-for-1 split

June 21, 2000: 2-for-1 split

February 28, 2005: 2-for-1 split

June 9, 2014: 7-for-1 split

 

This means that one share of Apple stock purchased at the IPO would have become 56 shares after the four splits. Therefore, the adjusted initial share price would be $22.00 / 56 = $0.3929 per share. This is the price that an investor would have paid for one share of Apple stock if they had bought it at the IPO and held it until today. Apple's share is currently traded in the financial market within the $170 mark as of 29 September 2023.

 

Apple Inc. on August 2, 2018, hit a $1 trillion market cap intraday and became the first United States publicly traded company to achieve such a milestone. Two years later (on August 19, 2020) Apple Inc. hit a new record $2 trillion valuation. 

 

Apple did reach $3 trillion in market capitalization on June 30, 2023, according to several sources. However, it did not maintain that level for long, as the stock price fluctuated in the following days and weeks. As of September 25, 2023, Apple's market cap was around $2.7 trillion, which is still impressive. Maybe Apple will hit that milestone again in the future, who knows? 

 

What is the future of Apple Inc?

 

Truth be told, no one can predict the future with certainty, as there may be some unexpected events or developments that could change the course of Apple's history. But one thing is clear, Apple is not a company that rests on its current peaks. It is always looking for new ways to delight its customers and create products that make a difference in the world.

 

The future of Apple is a topic that many people are interested in, especially since the company is known for its innovation and creativity. Apple will update its existing products with new features and designs, such as the iPhone 13, the Apple Watch Series 7, the AirPods 3, and the MacBook Pro 14-inch. These products will likely have improved performance, battery life, cameras, displays, and more. Apple may also surprise us with some new products that we haven't heard of yet.

 

To conclude I will add, that the technology industry is a big market where investors and consumers meet to exchange money for satisfaction. Apple Inc. so far has proven its capabilities as it continues to astound its customer base with innovative products and services.