Investing in Apple Stock (AAPL)

Jun 17, 2022
Investing in Apple Stock (AAPL)

Apple Inc. (AAPL) is a world expertise firm that designs, manufactures, and sells smartphones, private computer systems, tablets, wearables, and equipment. A few of its important merchandise embody the iPhone, the Mac line of private computer systems and laptops, the iPad, the Apple Watch, and Apple TV. The corporate additionally has a fast-growing companies enterprise that features its iCloud cloud service and its digital streaming-content companies, corresponding to Apple Music and Apple TV+.

Apple was based in 1976 by Steve Jobs and Stephen Wozniak. The tech large began out working from the Jobs’ household storage and has since grown right into a diversified expertise behemoth. A part of Apple’s development technique has been to buy small tech firms that it will probably simply combine into its increasing line of merchandise. 4 years after its founding, on Dec. 12, 1980, Apple went public via an preliminary public providing (IPO) at $22.00 per share. Its inventory trades on the Nasdaq International Choose Market.

Apple’s headquarters is positioned in Cupertino, Calif. Tim Prepare dinner has been chief government officer (CEO) since 2011. Apple is classed as a member of the knowledge expertise sector. It operates inside a lot of industries, together with pc {hardware} and expertise, video streaming, and cloud computing. The corporate faces quite a few rivals, together with smartphone producer Samsung Electronics Co. Ltd. (KRX:005930), pc producer Dell Applied sciences Inc. (DELL), video streaming firm Netflix Inc. (NFLX), and different large expertise companies like Microsoft Corp. (MSFT). Apple posted internet earnings of $57.4 billion on internet gross sales of $274.5 billion in FY 2020, which ended Sept. 26, 2020.

Key Takeaways

  • Apple manufactures smartphones, private computer systems, tablets, wearables, and equipment, and presents digital streaming-content companies.
  • Apple’s rivals embody Samsung Electronics Co. Ltd. (KRX:005930), Dell Applied sciences Inc. (DELL), Netflix Inc. (NFLX), and Microsoft Corp. (MSFT).
  • Apple earned internet earnings of $57.4 billion on $274.5 billion of internet gross sales in FY 2020.
  • A federal choose dominated in September 2021 that Apple should loosen its App Retailer restrictions to permit builders to offer hyperlinks to various fee programs.

Apple’s Current Developments

  • On June 10, 2022, Apple’s CEO, Tim Prepare dinner, despatched a letter to the U.S. Senate in help of the American Knowledge Privateness and Safety Act. If handed, the act would restrict knowledge assortment by tech companies.
  • On June 6, 2022, Apple’s World Broad Builders Convention started. It began off with six main bulletins together with a two new MacBook designs and new working programs for iPhone, iPad, and Apple Watch
  • On Could 17, 2022, Apple introduced it will be rolling out new accessibility options aimed toward serving to folks with disabilities extra simply use its merchandise.
  • On Could 5, 2022, Apple, together with Google and Microsoft, introduced they had been working to increase help for a common, password-free login for customers.
  • On Could 2, 2022, the European Union introduced it was shifting ahead with an antitrust case in opposition to Apple. Among the many points raised is that Apple’s Apple Pay program stifles rivals and innovation.
  • On April 28, 2022, Apple launched its Q2 FY 2022 monetary outcomes. Income was $97.3 billion, a 9% year-over-year improve, and earnings per share (EPS) had been $1.52, an 8.6% improve. Each numbers exceeded analysts’ expectations.
  • On April 27, 2022, Apple introduced a that it will start promoting elements, instruments, and manuals to assist prospects make sure repairs to sure iPhone fashions.
  • On Sept. 10, 2021, a U.S. district choose ordered Apple inside 90 days to start letting builders ship prospects outdoors Apple’s App Retailer for funds. Apple received an vital partial victory, nonetheless, as a result of the choose didn’t discover that Apple had a monopoly on the cellular sport market. (See particulars in Q&A beneath).

Apple briefly turned the world’s first $3 trillion firm throughout intraday buying and selling on Jan. 3, 2022. The iPhone maker additionally holds the excellence of being the world’s first firm to achieve $1 trillion and $2 trillion.

What’s Taking place with Antitrust Fits In opposition to Apple?

Along with antitrust litigation associated to its App Retailer, Apple faces a number of different antitrust lawsuits, together with these beneath.

On Oct. 6, 2021, Reuters reported that the European Union (EU) will quickly file an antitrust cost in opposition to Apple over the corporate’s near-field communication (NFC) chip expertise, based on folks accustomed to the matter. The chip expertise permits for tap-and-go funds on iPhones. The cost follows an investigation into Apple Pay launched final yr by the EU. The EU appeared into whether or not Apple engaged in anticompetitive conduct by refusing rivals’ entry to Apple’s fee system. The EU’s important focus now could be the corporate’s NFC chip.

On April 30, 2021, the European Fee, the EU’s antitrust regulator, charged Apple with levying excessive fee charges within the App Retailer and prohibiting builders from offering data on alternative routes to make use of their companies.

Has AAPL Ever Break up Its Inventory?

Apple’s inventory has break up 5 occasions on the dates beneath:

  • Aug. 28, 2020: a 4-for-1 inventory break up.
  • June 9, 2014: a 7-for-1 inventory break up.
  • Feb. 28, 2005: a 2-for-1 inventory break up.
  • June 21, 2000: a 2-for-1 inventory break up.
  • June 16, 1987: a 2-for-1 inventory break up.

Does AAPL Pay a Dividend?

Sure. Apple pays a quarterly common money dividend of $0.22 per share.

How Many Shares of AAPL Inventory Are There?

As of July 16, 2021, Apple had 16,530,166,000 shares excellent.

How Worthwhile Is Apple?

Apple had a internet earnings of $21.7 billion for the quarter that ended June 26, 2021, based on its most up-to-date quarterly submitting, which was launched on July 28, 2021. That is a 93.2% year-over-year (YOY) improve from the identical quarter in 2020. It additionally reported quarterly income of $81.4 billion, a 36.4% YOY improve, and earnings per share of $1.30, a YOY improve of 100%.

Who Owns the Most Apple Inventory?

The largest particular person insider shareholder of Apple is Arthur Levinson, who has been the corporate’s chair of the board since 2011. As of Feb. 2, 2021, Levinson owns 4.5 million shares of Apple inventory. The largest institutional shareholder of Apple is The Vanguard Group, which owns 1.3 billion shares, representing 7.8% of whole shares excellent, based on the corporate’s most up-to-date proxy submitting, reflecting the variety of shares as of Jan. 5, 2021.

Who Invented the Apple iPhone?

The late Steve Jobs, co-founder and former chair and CEO of Apple Inc., invented the iPhone along with his workforce of engineers and designers within the early 2000s. Jobs introduced the primary iPhone in January 2007 on the Macworld convention throughout an hour-long presentation. After the announcement, Apple scrambled within the following months to show Jobs’ demo cellphone right into a mass-market product. The primary iPhone was launched to the general public in June 2007.

Who Is Apple’s CEO?

Tim Prepare dinner is CEO and serves on the corporate’s board of administrators. Previous to assuming the CEO place in 2011, when he succeeded Jobs, Prepare dinner was Apple’s chief working officer (COO). He additionally frolicked main the corporate’s Macintosh division. Prepare dinner has been with the corporate since 1998.