Why Is Apple Stock So Cheap?

Apple Inc. (AAPL) is one of the most popular and well-known publicly traded companies in the world. So, why is its stock so cheap?

Checkout this video:

Reasons for the recent stock price drop

As of late, Apple stock has been taking a beating in the market. Many investors are wondering why the stock is so cheap and if now is a good time to buy. Let’s take a look at some of the reasons for the recent stock price drop.

Weaker-than-expected iPhone sales

Weaker-than-expected iPhone sales: In July, Apple announced that it sold 41.3 million iPhones in the most recent quarter, a 15% drop from the same time last year. The company attributed the weak results to iPhone users holding off on upgrading to newer models in anticipation of this fall’s highly anticipated 10th anniversary iPhone 8 release. Also, many consumers in emerging markets are opting for cheaper smartphones as their economies slow down.

install base: Another reason for the stock price drop is because of slowing growth in Apple’s “install base” — the number of active devices using its operating system. This is important because it directly impacts the company’s revenue growth. In its most recent earnings report, Apple said its install base grew by only 5% year over year to 1.2 billion devices — its slowest growth ever. This is a big problem because a large and growing install base is crucial for sustaining long-term revenue and profit growth.

Competition from Google and Amazon: Finally, Apple is facing stiffer competition than ever before from Google and Amazon, which are quickly gaining market share in the smart speaker market with their Home and Echo products, respectively. Apple is expected to enter the market later this year with its own smart speaker, the HomePod. But given that Google and Amazon already have significant head starts, it remains to be seen how successful Apple will be in this new product category.

Increased competition from Chinese smartphone makers

One of the reasons for Apple’s recent stock price drop is increased competition from Chinese smartphone makers. In the past few years, Chinese companies such as Huawei and Xiaomi have released phones that are comparable to Apple’s iPhone in terms of features and quality, but at a fraction of the price. This has led to a decline in Apple’s market share in China, and has put pressure on the company to lower prices in order to stay competitive.

Concerns about the iPhone’s battery life

One of the main reasons for Apple’s recent stock price drop is concerns about the battery life of the iPhone. Apple has been criticized for not being forthcoming about the issue, and many consumers are concerned that their iPhones will need to be replaced more frequently than other smartphones.

Another reason for the stock price drop is disappointing sales of the iPhone XR. The XR was supposed to be Apple’s budget model, but it hasn’t been selling as well as expected. This has led to concerns that Apple’s overall iPhone sales may be lower than expected.

Finally, there are concerns that Apple may be losing its edge in innovative new products. Many of its recent product releases, such as the HomePod and AirPods, have been seen as uninspired copies of existing products from other companies.

What Apple is doing to turn things around

Apple is one of the world’s most valuable companies, but its stock price is down 30% from its peak. some people think Apple is doomed. But I believe that Apple is doing a lot of things right, and it is only a matter of time before the stock price starts to reflect that. In this article, I will explain why Apple is a great long-term investment.

Introducing new products like the iPhone SE

In an effort to turn things around, Apple introduced the iPhone SE in March 2020. The new device was designed to be a more affordable alternative to Apple’s flagship iPhone 11 series, starting at just $399. The iPhone SE features many of the same internal components as the 11 series, including Apple’s A13 Bionic processor and a 12-megapixel rear camera.

The company is also rumored to be working on a new low-cost MacBook that could be released as early as this year. The laptop is said to feature a redesigned scissor-switch keyboard like the one found on the 16-inch MacBook Pro, and it start at just $999.

Apple is also working on a number of new products that are expected to be released in the next few years, including a redesigned iMac, a new Mac Pro, AirPods Studio headphones, and AR glasses.

It’s clear that Apple is still focused on innovation and releasing new products, despite its current struggles. With any luck, these upcoming products will help turn things around for the company and its shareholders.

Investing in augmented reality

Apple is investing heavily in augmented reality (AR), which is the technology that allows users to see digital content superimposed on the real world. The company has already released a number of AR-enabled products, including the iPhone X, the iPad Pro, and apple watch It is also working on AR glasses, which are expected to be released in 2020.

AR has a number of potential applications, including gaming, education, and e-commerce. Apple is betting that AR will eventually become ubiquitous, and it is likely that the company will continue to release more AR-enabled products in the future.

The reason why Apple is investing in AR is because it believes that the technology has massive potential. In particular, Apple sees AR as a way to increase customer engagement and loyalty. For example, if you are shopping for a new piece of furniture, you could use an AR app to see how it would look in your home before you buy it.

Apple is not the only company betting on AR. Facebook, Google, and Microsoft are also investing heavily in the technology. However, Apple has a major advantage over its competitors: its large installed base of over one billion active iOS devices. This gives Apple a huge potential market for its AR products and services.

Focusing on services like iCloud and Apple Music

Apple’s iCloud apple music services are important for a few reasons. First, they’re recurring revenue streams, which means that Apple gets a steady stream of income from them every month. That’s important because it helps to smooth out Apple’s earnings from quarter to quarter.

Second, these services are sticky, which means that once people start using them, it’s hard for them to stop. That’s important because it helps to keep people locked into Apple’s ecosystem. And finally, these services are growing rapidly. iCloud users have doubled in the last two years, apple music has 30 million subscribers.

Those three factors — recurrence, stickiness, and growth — make iCloud apple music valuable assets for Apple. And that’s why the company is focusing on them as it looks to turn things around.

Why Apple’s stock is still a good buy

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, apple watch smartwatch, apple tv digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iWork productivity suite.

Strong financials

One reason why Apple’s stock is still a good buy is because of the company’s strong financials. Apple is one of the most profitable companies in the world, and it has a large cash reserve that it can use to weather any economic downturns. The company also has a strong balance sheet, with little debt. This gives Apple flexibility to invest in new products and technologies, and to continue to pay dividends to shareholders.

A history of bouncing back

Apple is one of the most innovative companies in the world, and its stock has reflected that over the years. Even though the company has had its share of ups and downs, it has always managed to bounce back.

One of the reasons Apple’s stock is still a good buy is because of the company’s history of success. Apple has consistently shown that it can innovate and create new products that people want. This has led to strong financial results, and investors have been rewarded with rising stock prices.

Another reason to consider buying Apple stock is the company’s strong balance sheet. Apple has a lot of cash on hand, and this gives it a lot of flexibility to make acquisitions or invest in new product development. This makes Apple a very attractive investment for long-term investors.

If you’re looking for a technology stock that still has a lot of upside potential, Apple is a good choice. The company has proven that it can innovate and generate strong financial results, and its strong balance sheet provides added stability.

A large and loyal customer base

There are many reasons Apple’s stock is still a good buy, despite its recent dip in value. One of the most important reasons is that Apple has a large and loyal customer base.

Even though Apple’s products are not the cheapest on the market, people are willing to pay a premium for them because they trust the brand and they know that they will get a quality product. This loyalty means that Apple is less likely to be affected by economic downturns than other companies, as people will still buy its products even when they are cutting back on other areas of their budgets.

Apple also has a strong financial position, with over $120 billion in cash and investments on its balance sheet at the end of 2017. This gives it plenty of room to weather any short-term downturns and continue invest in new products and services.

So, although Apple’s stock price has fallen recently, there are still good reasons to believe it is a good long-term investment.

Scroll to Top