Saturday , January 22 2022

4 reasons why Apple stock is fastening – BBC News


The Apple technology company was Wall Street's eye apple, the US financial center.

It was the first US company to quote in the market for three trillion dollars, proud of offering products that set trends and manage cash sums higher than the economy of some countries.

As well as having loyal consumers who are ready to camp overnight to be the first products to buy Apple.

But in recent weeks, California has lost its value.

Your deeds aftern has dropped more than 20% since October, which affects the price of other companies and, in general, market stability.

The price of their shares is less than US $ 180, but recently they were US $ 230.

What's Happening?

Stock Exchange
The technology company shares have dropped more than 20%.

1.- Investors are worried about selling the iPhone

The company revealed a new product line in September, but it is not clear if the emotion of the moment is converting to sales.

The number of products sold in the latest quarter of 2018 has not changed a lot.

And the estimated increase of between 0 and 5% per annum in profit during the festival period (when families usually acquire the latest devices) has invested disappointed investors, producing a fast sale of securities.

Recent announcements regarding the cuts of the production of some of the company's contractors have also contributed to the concern, although these movements are difficult to interpret.

The situation get worse with the decision Apple to give the best to tell how many iPhones, iPads and other products have sold in each quarter of the year, raising suspicions that it could hide something.

"Forbidden to publish data on the iPhone was the straw that broke the back of the camel," said Daniel Ives, director of the research company, Wedbush Securities.

Services: future of growth?

2.- Apple's high prices could allow the company to end if there are problems with the economy

In recent years, the company has rejected the decline in smartphone sales with its increase in its price, which has allowed it to have a record in its profits, despite industry compression.

But it is expected that the global and US economy will slow down. In addition, recent information about consumer trends is not clear.

The cheaper device in the new line of IPhone costs US $ 750, and this puts the company at risk if the economy slows down. The prospects for the sale of the company have exacerbated these fears.

"The trend generated by the average selling price can not last forever," said Angelo Zino, an analyst with the CFRA investment research company.

He added: "I believe that the real concern for investors is how long this situation can be long."

3.- Investors do not trust them – in the business services offered by Apple

The technology company has identified its services, which are included ApplePay, App Store and Apple Music, The among others, The as the next source of growth. Expect to produce US $ 50,000 million in profit taking advantage of the large number of users it has.

But investors have many questions. For example, Apple has not yet disclosed its plans to venture to television and movies, and its objectives to participate in the health industry are not anonymous.

"Analysts will have to adapt to business features that are driven by small and regular payments, rather than receiving large revenue generated by popular devices," said Carolina Milanesi, analyst at the Creative Strategies market research company.

However, he also believes, at that time, that there were concerns about Apple's position premature.

"If we know that there will be no increase in the sales of iPhones, or even it will decrease, and there is nothing to compensate for that reduction, of course, there are reasons for worrying, but there is & # 39; It's too soon for that, "said Milanesi.

"If in a year," it continues, "we see that the service business is not being abolished as we expect, then the difficulty could be legal."

Apple Logo
For some, the concern about Apple's future is premature.

4.- Apple reflects concern about the commercial tension between China and the US.

The technology sector in general has suffered difficulties in recent weeks as investors have left a market that had produced profit at the beginning of the year.

However, until Apple's recent update to investors on November 1, the uncertainty of the markets had not affected its many shares, if both incidents were compared.

But now, fears and markets have hit Apple. And there are several: too optimistic evaluations, rising interest rates, currency fluctuations and trade ties between China and the US.

The Asian country, in particular, is a risk that causes some concern because the Greater China region, which includes Hong Kong and Taiwan, is a source of 20% of the profits the company.

It also depends on manufacturing in the area, but, at the time, its products have been exempt from tariffs.

"It's definitely a period of tension," said Ives. He says, however, that he feels optimistic about the future of Apple in the long run.

"I do not think there's a big change in Apple's history in the next two or four years," it comes to the conclusion.


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