At the end of 2019, while fans of the company rejoiced at the achievements of Apple and the best (2009) year in its history, a group of respected financial analysts have published your pessimistic prediction: Apple’s stock is overvalued, and in the beginning of 2020 the company will be a rapid decrease in quotations and market capitalization. The first ten days 2020 is almost behind us, to judge something seriously early, but the preliminary results can be.
The predictions of the skeptics, at least for now, not true. In the first days of the year when nothing substantial with Apple didn’t happen, stock prices fluctuated within narrow limits, but in General continued to rise – breaking never achieved in 2019, the psychological barrier of $ 300, again and again, surpassing the historical maximum. Out of inertia. Then a new year began in earnest. It happened on Wednesday, January 8. On the last day of “Christmas vacation” in the Russian Federation, on the fourth day of trading on NASDAQ, the company’s stock once again rushed to new heights.
9 January happened something else was. The historical maximum several times changed during the day, now it’s 310,43. For all time, from the moment of placing the shares of Apple (then her name was Apple Computer) on the new York stock exchange and NASDAQ to date, the company’s shares have not traded so high. The highest achievement was short, after that the rate fell to 306,31, rose to 309,62, fell again. The auction ended at around 309,63.
On this day, Apple told the world about the success of their services. They’re fine, the number of subscribers is enormous and continues to grow. In the media, in recent weeks, 2019, it was reported that Apple News+, news service for English-speaking countries stood at ridiculously low around 300 or 400 thousand subscribers and has failed. The proof of this seemed very convincing. Apple has not commented on the accusations, sort of agreeing with him – but now, when the official data (100 million subscribers in the US, Canada, UK and Australia), with that misconception over.
With Apple TV+ Apple Arcade and the Apple Card all too well. Eddy cue, senior Vice President of worldwide web technology and services, called the past year a historic one. Financial results in this direction for publication is not ready, they are known to the company management – but before publishing them to check for and subject to audit. However, it is not necessary. Eddy cue, telling about the triumphal rise of “Apple” services, noted that in terms of money are still modest, for obvious reasons. Apple, as an experienced drug dealer, gives future clients a free dose. If Apple services were an independent company, at the end of 2019, they would have got the Fortune 70 is, according to Apple “modest result”.
Great, but modest, in financial terms, the achievements of Apple in the paid subscription services are unlikely to be able to influence the mood of shareholders of Apple so seriously. What happened was a single service, which is not even a subscription – App Store. Aggregate, for all platforms. Over the festive week, from 24 to 31 December, visitors spent therein 1.42 billion dollars. That’s 16% more than last year. Only for the last day of the holiday week, December 31, customers spent 386 million dollars – increasing by 20% a record result of 2018.
And besides, in the entire history of the App Store there was not such a successful day. It would seem, what does this have to the prospects of Apple. “Apple” ecosystem – the main asset of the company, it lives, thrives, breaking records. You can despise Apple or hate it, or even to argue that this is an illusion. But hundreds of millions of inhabitants of our planet need it. And software developers, in the entire history of the App Store since 2008, paid $ 155 billion.
Apple in China
In early 2019, when the Apple stock price had been below the usual values, because of information about disastrously weak iPhone sales for Apple in second in importance to the Chinese market, the company brought it to 142.00. On the background of rumors about the not very successful sales of the iPhone in the us and European markets (in fact, it was even worse in the world started talking about the end of the era of the iPhone, and the sad fate which it Apple), this information came as the diagnosis of a fatal incurable disease. Defensively, Tim cook referred to a General decline in interest in smartphones in China – and in fact, the decline of interest was. And now, almost exactly a year later, came news from China. You have understood everything: this time with Apple in China all is well, the stock has soared, and with it the market cap.
In September and October 2019, iPhone sales in China grew and exceeded last year’s figures for the same months at 6%. In December 2019 sales of the iPhone in China was 18.7% more than the year before. This month China bought 3,18 million iPhones. Leaders of sales – iPhone 11, iPhone 11 iPhone and XR Pro. Meanwhile, smartphone sales in China continued its decline – in comparison with last December, they decreased by 13%. Analysts suggest that demand for the iPhone 11, iPhone 11 iPhone and XR Pro in the coming months will remain high, but then, due to the broader introduction of 5G cellular networks in mainland China and the lack of support for such networks in the current iPhone models, it will be reduced.