Shares of “Apple” nearly doubled after a fall in March, in a surprising performance; It raised the net income of CEO Tim Cook to one billion dollars for the first time, according to figures from the Bloomberg Billionaires Index.
The market value of “Apple” on Tuesday reached about $ 1.87 trillion, ahead of its peers in the technology sector, Amazon and Microsoft (both 1.54 trillion) and Alphabet, which owns Google, (1.0 trillion).
If its value reaches $ 2 trillion, Apple will be the only company besides Aramco that reaches that threshold.
Although other large technology companies recorded a significant spike in demand during the lockdown periods; “Apple” surpassed its competitors by achieving significant sales in wearable accessories and tablets, as well as applications and services that have seen strong performance during the health crisis.
“Apple has achieved great success in building its platforms, and has responded to the rise in iPhone sales by innovating products that surround it and services that strengthen it,” said Avi Greengart, an analyst at “Techspunencial”. And he adds, “All of this” is in the interest of Apple. “
In the last quarter of the year ending in June, Apple reported an 8 percent increase in profits to $ 11.2 billion, while revenues rose 11 percent, at $ 59.7 billion.
Apple at home
The results of that period showed a slight increase in smartphone revenues, supported by sales of the new iPhone SE, and a strong increase in sales of iPad tablets and Mac computers; To meet the demand for distance education and work from home.
Services accounted for more than a fifth of Apple’s revenue, with the expansion of the music, digital payments and streaming sectors. What boosted the income of “Apple Store”. And Apple is leading the smartwatch market, amid increasing interest in health and fitness applications.
Jane Munster of Loeb Ventures said in a research note that “Apple entered the epidemic crisis strongly, and the company’s products became more important in our lives during work and leisure from home.”
An analyst at Goldman Sachs Road Hall said: The markets seemed to be surprised by the strong results of «Apple», noting that «it is clear that consumers and institutions are spending more than we expected; To support work and study from home ».
One of the main factors behind Apple’s success is the leadership of Cook, who took over the management of the group just before Steve Jobs died in 2011.
“He didn’t invent anything,” says Needham & Co. analyst Laura Martin. But what he has done is to keep holding the steering wheel steady, to steer the ship and to preserve the traditions. ” And she considered that Cook “deserves to be given great credit for using Steve Jobs’ innovations in the best way.”
Cook was not an Apple co-founder, and his salary of $ 3 million in 2019 plus bonuses of $ 7.6 million; Modest by Silicon Valley standards; But the rise in the value of his shares; It was entered by the billionaire club, for the first time, according to Bloomberg.
China and the future
The question remains whether Apple can maintain the strong growth pace in the current environment. It is likely that some analysts will achieve this, and point to the need for alternatives to smart phones, and application development for the fifth generation network.
“Apple” has a chance of getting a contract in the next 12-18 months, says Daniel Ives, an analyst at Wedbush Securities. We expect that about 350 million iPhones from 950 million phones around the world will have the opportunity to develop applications. ”
But “Apple” faces risks; Due to the escalating tension with China; As Apple is not satisfied with manufacturing the iPhone and other products; It also depends on that market for a large slice of sales, according to Greengart. He added, “The biggest risk point for” Apple “is; Is that it is very concentrated in China. ”
With the Trump administration threatening to ban the Chinese apps, WeChat and TikTok, Apple may face headwinds, according to the analyst.
“If Apple is unable to provide WeChat, it will be difficult for it to sell iPhones in China,” Greengart said. Because that is more like a second operating system. ” And he considered that any response to Washington by Beijing; It could cause problems for Apple.
But on the other hand, he hinted that “Apple” could be in a stronger position. Due to its extensive operations in China; It employs hundreds of thousands of people, mainly through subcontracting.
“It will be difficult for China to take Apple out of the market without causing massive unemployment,” he said. (AFP)
Market value «trillion dollars»
* «Amazon» 1.54
* «Apple» 1.87
* «Google» 1.0
* «Microsoft» 1.54