Apple 2020: Why Is This Tech Giant Still Worth The Investment?

Posted: Jan 13 2020, 11:51pm CST | by , in Apple

 

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Apple 2020: Why is this Tech Giant Still Worth the Investment?

When you hear the word "Apple," you'll likely remember the fruit and the logo of a bitten apple. And the fact that we remember either of these make Apple quite an interesting company. Likewise, if you're looking into a company to invest in, it's very likely you'd consider Apple as one of your potential investments, and for good reason. If you remember the brand with a simple word, it's probably got good recall. And if it's that memorable, then it's likely a performer in the market. What else, though? What makes Apple such a coveted investment option for consumers?

In this article, we'll explore some of the many things that make Apple quite a great investment.

  • The Ecosystem can work for any consumer. When you pay for an expensive Apple product, you most likely pay for what experts call "the Apple tax." This encompasses all the quality of life features Apple add to their products (in this case, everything that makes their products unique) in order to give users a complete Apple experience. What makes this system work is that there's so many products within the Apple Ecosystem, and each with their set of variations depending on economic group, that there's likely an Apple product for everyone. And given how materials and costs for expenses have allowed Apple to shift focus into providing cheaper products for the common user means there's going to be more people accessing Apple in the future.

    • There’s a huge chance for Apple to penetrate the middle-class in economies that have started to show a surge in development, such as China, Brazil, Russia, and India. Middle-class members of these economies have begun showing to have more disposable income, meaning a lot more money to spend on Apple’s slate of products.

    • There’s almost an Apple product for almost any situation. If you need a smartphone, you can have an iPhone. Students and professionals can rely on the iPad and Macbook for their work. Meanwhile, heavy-duty workers can have an iMac for reliable performance, and casual users can rely on iPods for their entertainment.

  • Numbers have been doing great so far. What better assurance you have of a good investment than actual numbers, right? Before we go straight to other reasons why Apple can be an attractive option for stocks, it's important to know that Apple has actually been performing well these past few years. Granted, there were minor dips and rises in stock valuation every few quarters. However, as one of the few companies with the largest cash flows, there's just as much money coming in as there is coming out. Of course, if you want to look into getting Apple stock, you've got to analyze these numbers - it’s not like you’re playing car games that you “just have to dominate” others. In fact, regardless of risks, Apple's supremacy in this regard is far from over.

    • Apple still has a huge market-share, especially on the smartphone market. It’s estimated that 99.9-percent of USD 1,000+ smartphones and 93.7-percent of market shares in ~USD 900 smartphones are owned by Apple. And despite Apple only having 34-percent market share and 22.8-percent market share in the USD 500 to 599, and the below USD 500, respectively, rumors of much cheaper smartphones might change this.

    • Despite the struggle to penetrate the Chinese market, experts are seeing a potential in Apple factories and Apple Services in China. Considering how the Chinese government has started approving more games in the China App Store, Apple will likely see more growth in the next quarters.

  • You can't go wrong with brand recall. When we hear "Apple" the brand, we think of minimalist tech with their unique sets of interconnected devices . Not only that, but we feel a sense of regality, sophistication, and grandeur when we see Apple products. The fact that Apple can make people feel special when they have their products is testament to how powerful their brand recall is. And it's this grip in the hearts of consumers that allow Apple to experiment with various new features and adjustments to their products. If you're looking for a reason to invest in Apple products, try looking at it from how we most likely will always associate "Apple" with both the iOS and the actual fruit.

    • It’s estimated that Apple has a whopping 900-million user base for iPhones, and it’s growing thanks to high-user satisfaction rates. And while transferring to the iOS might be tricky in terms of data transfers, constant improvements in their software still attracts both newcomers and those used to Apple’s products.

    • A lot of professionals have started to look at Apple as an example of successful branding - and considering how John Sculley (a marketing executive from Pepsi) turned Apple into a branding powerhouse, there’s no doubt Apple may be able to continue this trend. It’s thanks to this “fearless” attitude that Apple keeps on trying out new products and new trends, and some investors might see this as a constant sign for potential.

  • Risk pays off, regardless of the perception. People say bad publicity is still publicity, and Apple proves they will remain a powerhouse in the industry because they're willing to put their brand at stake for the sake of innovation. Tech fans and enthusiasts will remember Apple for both great ideas and crazy antics - just like how the iPhone back in 2007 revolutionized the touch-screen smartphone industry, and how fans have gone into an uproar when they removed the earphone jack from their latest models. And regardless of the dips and rises in stock value, Apple has never dropped from the Top 5 for tech companies in terms of sales.

    • Despite Apple’s tendency to release sometimes “wacky” concepts, their slate of services have actually been booming. No one could expect services such as AppleCare, Apple Music, Apple Pay, and the iCloud could be so popular for users. And now services revenue for Apple has shown consistent signs of growth.

    • In speaking of risks and trends, Apple could take advantage of a lot of growing tech in the industry. Thanks to its strong position in the market, Apple can start getting into AR, VR, and even AI in both its slate of hardware offerings, and software.

  • Apple: The Bite of An Apple, The Bite of Success

    With the above in mind, you'll probably have a better understanding of what makes Apple extremely memorable as a brand and as a company. Not only that, but you'll hopefully be able to see what makes Apple such an interesting investment option. If you've got. The extra funds to secure some Apple stock, it's probably a wise decision to do so.

    What do you think about securing Apple stock? Is it worth the investment? Let us know in the comments!

    Guest Author: John Salazar

    John Salazar is a certified techie-at-heart, but he shares a love for all things science and technology, health and wellness, and even a bit of music on the side. As a creative writer, John makes sure to write both informative and entertaining pieces. He loves writing, and he plays the guitar when he has free time.

    This story may contain affiliate links.

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    The Author

    <a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
    Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
    Luigi can be contacted directly at ml[@]i4u.com.

     

     

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