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The successful model Apple is for the future

D.he new iPhone is here. The new version, the iPhone 12, was presented on Tuesday evening. Apple fans, analysts and investors were excited to see what Apple CEO Tim Cook will present to the audience. Now it has become an iPhone that is available in four different versions. The new model has to do what all previous smartphones with the apple logo were supposed to do up to now: get the large fan base enthusiastic and, above all, to buy the models. Because good is not good enough for the company with the apple logo.

With four variants of the new model, Apple is trying to reach as many (potential new) customers as possible. Shouldn’t anyone say that the Californian company doesn’t have a suitable model for them – even if buyers will initially have to do without a power supply unit and headphones and Apple justified this with CO2 savings. Of course, the accessories are still available. But Apple can assume that the majority of iPhone 12 buyers already have things like an Apple power adapter or headphones. The group can save costs and at the same time polish up its green image.

Apple did its homework

This, in turn, is part of Apple’s strategy, in which every iPhone customer is also someone who uses, or is supposed to use, many other Apple products and services such as MacBook, iPad, Apple Watch, AirPods, Apple Music and Apple Pay. The American group has consistently done its homework over the past two years. Apple tried to turn around and at the same time to satisfy the in-house fan community and did it:

Moving away from the pure iPhone group to the entertainment and service group with a cult smartphone as the number one sales driver and innovative and profitable products such as the Apple Watch, which are becoming more and more decisive in terms of revenue. A decade ago, no one would have thought that a Californian technology company would also outperform the entire venerable Swiss watch industry in terms of numbers.

How successful Apple has come through the Corona crisis should show the next quarterly figures, which are due on October 29. Analysts anticipate a slight increase in sales, while earnings per share are likely to have increased significantly from $ 0.71 per share in the same quarter of the previous year to $ 0.76 per share. The strong margins of products like the iPhone or the Apple Watch are likely to have been decisive here again. After the Christmas quarter, investors will know what that will look like with the iPhone 12.

In any case, the response from the analyst firms to the new core product is largely positive. JP Morgan in particular is very optimistic. Here you leave the classification with “Overweight”, provided with a price target of 150 dollars. Customers are likely to replace older iPhones with newer ones to a large extent, according to the assessment. In addition, the new iPhones are offered at competitive prices, even though they are now fit for 5G data transmission.

RBC meanwhile has the classification for Apple after the presentation of the new iPhone models on “Outperform” with a target price of 132 dollars. With the start of sales of the new 5G iPhones, an upward cycle of several years begins for the electronics company, wrote analyst Robert Muller. Of course, Apple investors like to hear such assessments, who should still be relaxed when looking at their own depot.

A top stock on Wall Street

After the Apple share price collapsed by more than a third to around $ 53 between February and March of this year, the quotations skyrocketed. The price of the Dow Jones share rose by 160 percent to the beginning of September and marked a new all-time high at around $ 138. After the steep rise, the price fell to $ 103 by mid-September, after which a new catch-up movement followed by mid-October.


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To the detailed view

This brings the historic high of early September into focus. Very few seem to doubt that there will be new records. Among other things, Goldman Sachs. The analysts recommend selling the share, while Credit Suisse sees Apple as “neutral” with a price target of 106 dollars. New record highs are virtually inevitable for Apple, as the long-term stock market history of the share impressively shows. Over the ten-year perspective alone, the price rose by an average of 28 percent annually, making Apple one of the absolute top stocks on Wall Street.

The apple success story continues

So Apple is very profitable. Anyone who invested a sum of 10,000 euros in Apple shares in 2010 and believed Steve Jobs and his product visions at the time, for whom it has turned into more than 131,000 euros to this day. Long-term investors have made very good money with Apple, if they have not let themselves be nervous by temporary short-term price weaknesses.

Having shares of the company with the highest market capitalization in the world in your own portfolio should not be a mistake in the 2021 stock market year either. So far, Apple has always managed to convince buyers of its products, and that should be reflected once more in the share price and in the balance sheet in the following quarters.

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