APPLE

Analysis of Apple share price

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Elements that can influence the price of this asset:

Analysis N°1

Attempts to diversify Apple's activities into other, as yet untapped, technology segments are of course to be followed with interest. This could include the games console segment, where Apple could compete with Sony and other major players in this sector.

Analysis N°2

We will also keep an eye on the establishment of strategic partnerships and alliances with other companies, particularly in the context of future developments.

Analysis N°3

Of course, in general, data on the development and growth of online products and services, such as the provision of content or music, will be monitored, segments in which Apple is very well positioned.

Analysis N°4

The analysis of the competition will of course also be of prime importance, especially in the smartphone segment with its rapidly changing market shares. The leadership of Android operating systems in this segment will also be monitored.

Analysis N°5

Finally, and with regard to emerging markets, we will monitor the operations implemented by Apple to increase its sales volumes.

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General presentation of Apple

The Apple Company’s correct name is actually Apple Inc, originally Apple Computer Inc. It is a multinational business created in 1976 by two American associates, Steve Jobs and Steve Wozniak. The activity sector of Apple is the design and creation of technological products such as personal computers or computer software.

It is this company that created the famous Macintosh a few years ago, then, more recently, mobile terminals such as the iPod, the iPhone and the iPad. It also created the popular application, iTunes.

At the present time Apple employs over 60,000 people throughout the world and achieves a turnover of over 100 billion U.S. Dollars with over 360 Apple stores in a dozen or so major countries.

Analysis of Apple share price
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The major competitors of Apple

As you will have seen from the above paragraph, the Apple group operates in a variety of different segments. When analysing the competition of this group, it is therefore necessary to know the competitors in each of these segments, which are therefore likely to take market share from Apple.

Tablets

In the field of tablets, we also know that the IPad developed and marketed by Apple is facing some major competitors. Among the companies most present in this segment are Samsung, Toshiba, Motorola, Acer, Archos, Microsoft and HP, which is undoubtedly one of the most serious opponents thanks to its TouchPad tablet, which has enabled it to gain a large market share. The Amazon group, which also offers tablets that are increasingly popular on the market, will also be closely followed in this segment.

Smartphones

In the smartphone segment, competition is again very strong. Of course, Apple's main adversary in this market is the Korean company Samsung, which is developing ranges of phones with features very similar to those of Apple. We will also keep an eye on a fast-moving competitor, Huawei, also from Korea, whose sales are growing steadily.

Computers

In the computer segment, we will of course take into account the competition from the Windows operating system, which equips the vast majority of today's computers and which competes directly with Apple's iOS. As for computers themselves, we will of course keep an eye on the big names in this field such as HP, Sony, Acer, Asus or Lenovo.

Music

Finally, in the music player segment, there are still few competitors that pose a real threat to Apple, which holds a majority of the market share. However, we will keep an eye on Sony, Philips and Samsung who are looking to gain points in this market.


The major partners of Apple

To become the major player in its sector of activity that it is today, the Apple group had to implement a very well thought-out strategy over the long term and thus gradually gain market share. Amongst the essential axes of its strategy, the implementation of partnerships and strategic alliances is an interesting point to study before trading this stock. Apple is indeed multiplying its alliances with other companies and each of these events has a greater or lesser influence on its shares. Here are some recent examples of such alliances to help you understand their impact. 

Salesforces

In 2018, for example, the Apple group set up a strategic partnership with Salesforces, a company specialising in customer service activities, in order to gain more market share in the professional segment. Although Apple is the leader in the consumer market, it is not yet sufficiently well positioned in the business market. As part of this alliance, Salesforces will therefore take charge of developing specific functionalities dedicated to customer relations and service on the iOS operating system, which will then be integrated into its portfolio of apps or offered through development kits or to third-party developers. Among the features under development are new business features that would take advantage of the latest developments in iOS such as the Shortcuts app, Face ID or Apple Business Chat.

Kering

Still in 2018, the Apple group also seems to have moved closer to the luxury segment by setting up a strategic partnership with the Kering group. The aim of this partnership would be to develop and perfect a professional application for the employees of this group's boutiques. Of course, this type of partnership is likely to strongly boost Apple's positioning in the very high-end sector given the large number of brands and therefore boutiques managed by Kering, such as Gucci, Yves Saint-Laurent, Boucheron, Balenciaga and Alexandre McQueen.

Alibaba

Finally, the latest partnership to date of the Apple group was formed in 2019 with the Chinese online retail giant Alibaba. Indeed, let's recall that Apple realizes a large part of its turnover in China but that this one currently tends to fall because of the trade war between this country and the United States, in particular with regard to smartphones. In order to counter these sales drops and to fight against the boycott of Chinese users, Apple has therefore set up, in partnership with Alibaba and its subsidiary Ant Financial Services Group, a 0% credit for iPhone purchases on this online platform. The system allows customers who wish to buy an iPhone XR or XS to do so with monthly payments spread over 3, 6, 9, 12 or 24 months without any interest.

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The factors in favour of a rise in the Apple share price:

Do you want to know if it is worth taking a long position to buy Apple's share with CFDs? In this case, you first need to know the advantages and strengths of this value. This is what we propose to discover here with this summary of this American company’s strengths.

Of course, the first advantage of Apple is its position as a leader, especially in the markets of smartphone and tablets. However, there is a fierce battle going on with some major competitors like Samsung which should be closely monitored. We will come back to this when we discuss the weaknesses of this value.

Another great strength of Apple is its ability to generate significant larger margins. More specifically, Apple is one of the companies with the highest margin levels in the market thanks to a type of activity that is known to be very profitable and which has a significant control of its production costs. In a more general way, Apple stands out for its good financial health and counts with a very strong investment capacity, which is promising for its future and its ability to innovate even more in order to maintain its good position. From a historical point of view, Apple has always published results beyond expectations, which tends to strongly reassure investors.

We also note that Apple is supported by analysts who regularly review their rising estimates, which tend to increase buying positions and support rising fundamentals. These estimates relate to both the turnover of the company and its current operating income. But these upward revisions are also directly related to the shareholders since the forecasts of net earnings per share are also regularly raised thanks to the positive outlook on the evolution of the company's activities.

 The strategy used by Apple is also very well thought out and strives to make the company competitive. This strategy includes an excellent integration of the different activities on the horizontal level as well as on the vertical.

Thanks to a well-thought-out marketing strategy, Apple has been offering the general public a wide range of successful products for many years. It is therefore likely that this is not just a momentary trend and that the company manages to maintain a high level of demand among consumers.

Finally, let’s remember that Apple has one of the most important growth rates in the world among the international industry, which is undoubtedly one of its major attractions for investors.

The factors in favour of a drop in the Apple share price:

Of course and as we quickly mentioned above, Apple shares does not only offer advantages for traders. Before determining which strategy, you will adopt on this title, it is essential to know the possible disadvantages of this value. So here are the main weaknesses of the company and its stock market title.

First, it is very important to understand that Apple titles is particularly popular among investors and is therefore a very speculative value. Its responsiveness to graphic configurations is thus very strong and short and medium term reversals are frequently observed, which calls for utmost caution. In particular, it is known that massive profit-taking is often observed as major levels of technical resistance are approached.

On the other hand, even though Apple’s range of products has been a great success among the public for many years, the group has a very strong dependence on its two flagship lines namely the IPhone and the IPad. This is due to a lack of a diversification strategy which could have a significant impact on its long-term results.

Apple also offers little price variation within its product lines. It targets only a specific segment of the market and cannot position itself on the mid-range and even less on the low end. The company is thus highly dependent on the purchasing power of its consumers and very exposed in case of economic crisis.

Finally, it should also be noted that Apple is increasingly weakened by significant competition. Of course, we already know the danger posed by its main competitor, Samsung, but now there is also competition from Asia such as the Korean brand Huawei which, in addition to offering technologically qualitative and innovative products, sells them at much more affordable prices.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What is the stock market for the Apple shares?

The Apple Company share price is currently quoted on the Nasdaq stock exchange in New York. Of course, this asset is therefore quoted in American dollars. If you purchase this share for including in your stock market portfolio you should therefore take into account the foreign exchange rate between the Euro or British Pound and the American Dollar. Of course you may also speculate on this asset using CFDs through an online broker.

What is the stock market capital of the Apple Company?

In March 2020 the Apple Company possessed a stock market capital of more than one billion American dollars. Of course, this figure is not fixed and changes over time. For example, in 2018 Apple benefited from a sizeable capital before passing below the one billion dollar bar following a drop in sales. Generally speaking the Apple share price is the principal factor that will influence this capital.

When and how to follow the financial results of the Apple Group?

To follow the financial results of the Apple Group you can consult the economic calendar of this company from the platform of your online broker. This calendar will in fact display older publications as well as those to come with their precise dates.  Generally speaking Apple announces its annual financial results around February each year for the previous year however it is important not to forget to consult the half yearly results of the company as well.

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