Well-known Apple today is one of the most expensive companies in the world. Over the past ten years, this technology giant has made a huge leap forward, has conquered the IT market, and the manufacturer’s products have attracted the attention of millions of people around the world. Even inexperienced in investing people tend to invest their money in securities of this company. The value of Apple shares we will consider in this material.
Apple value at the end of the 20th century
To understand the dynamics of changes in the price of company securities on trading floors, two indicative time periods should be analyzed. First, you need to pay attention to Apple's stock price from the 1980s to the mid-2000s. We will see that in this period of time the market growth outpaced the growth of this American manufacturer.
There were two main reasons for this. First of all, it should be noted the crisis within the company itself, which at some point was left by its founder and ideological mastermind Stephen Jobs. Another reason for the stagnation and low cost of 1 Apple share was the rapid development in the mid-90s of organizations whose business model was completely tailored to work on the Internet. The established term dotcom (or dot.com) applied to them.
Company stock in the 2000s
In the mid-2000s, Apple received a new life. Steven Jobs returned to her, under whose leadership the legendary MP3 player, smartphone and tablet were developed and launched. iPod, iPhone, and iPad revolutionize technology. During this period, the company grew at a tremendous pace. Over the five years since the mid-2000s, Apple's stock price has increased by 220%, and the IT market only by 10%.
Such indicators are very uncharacteristic for companies that are classified as blue chips. Here it is necessary to clarify that this term is used in relation to corporations and the shares issued by them, which have the highest reliability, liquidity and high level of profitability.
What is the prospect of Apple stock quotes?
Many investors who are just about to invest their own funds in Apple securities are interested in the growth prospects of Apple. There are two opposing points of view in this regard. The first of these is an optimistic outlook on the future dynamics of Apple stock prices.
The arguments are three main components. Firstly, this is the high quality of Apple products. Secondly, the devices manufactured by the company have already formed a certain subculture, they have a multi-million army of fans and a constant demand that has only grown over the years. The third aspect is the presence of a whole community of independent developers of software for gadgets Apple. Their interests and revenues are closely related to the development and success of the corporation and its products.
These three components of a positive forecast for the growth of Apple stock prices today make it possible to make huge profits from the products sold and the sale of securities. Capitalization is growing steadily, and the release of each new iPhone smartphone is causing a real boom among the manufacturer’s loyal fans. Despite the fact that it will not be easy to find the potential for growth at the previous pace, the factors described above allow us to hope for a further increase in the value of Apple shares. But there is another point of view.
Alternative look
Not all experts and analysts agree with such a rosy picture of the future of the corporation.The sphere of high technologies is rapidly developing and changing, new directions are constantly appearing on the agenda, many of which are becoming fashionable and setting a certain trend in the industry. In addition, forecasting the state of financial markets is a rather difficult task. And when it comes to the field of IT technology, the task becomes even more difficult.
A number of skeptics point to the grounds that allow them to make not the most optimistic forecasts regarding the company's capitalization, as well as its future prosperity.
What threatens Apple's stock price?
Despite the permanent increase in the value of Apple shares over 10 years, analysts highlight several key factors that could theoretically negatively affect the position of the company's securities in the near future. Among the first of these is the addiction of the corporation's leadership to patent wars. It is no secret that a significant share of success in the growth of the company and the popularity of its products on the market is ensured by successful lawsuits initiated by the lawyers serving it.
For example, they often succeeded in pushing back the timing of entry into the US market of devices of competing manufacturers. But victories in litigation cannot happen indefinitely. Relying entirely on such a tool is also impractical because Apple is suing not only device manufacturers, but also companies working on the Internet. For example, with another giant - Google. Many competitors of Yabloko have a tooth for the company. They can join forces and further oppose Apple in the market as a kind of coalition.
By the way, experienced investors are well aware of the impact of patent disputes on the situation at securities trading sites. Several consecutive failures in the lawsuits may signal a quick collapse in Apple's stock price. In other words, patent litigation is a rather shaky chair, which is too long to sit on, difficult and extremely uncomfortable.
Another factor that could negatively affect the value of Apple shares is the rapid development of the Android operating system and the growing popularity of devices running on this OS. This shell from Google is rapidly catching up with iOS in terms of features and amount of software. In addition, Android devices are very popular in developing countries.
The main part of the market for Apple products is still the United States of America. But in the US, Android is growing stronger. In addition, most consumers are fans of open systems, and this provides great opportunities for further growth and popularization of the OS from Google.
Another possible reason for the future fall in Apple's stock price is called the figure of its founder Stephen Jobs. It was he who gave the company a new life after his second coming. Stephen was the ideological inspirer and initiator of the development of the most popular devices manufactured by the company. Some analysts believe that Apple still uses the momentum set by its creator and CEO. After it is exhausted, the company will be waiting for the traditional diseases of large corporations: the dominance of the bureaucracy, the crisis of new ideas, the lack of innovation. Yes, there is such a point of view.
It is also necessary to note another probable reason for the decline in popularity of Apple products and, consequently, the fall in the value of the company's shares. As already noted in this material, the high-tech industry is extremely volatile and unstable. Large companies often simply cannot keep up with emerging trends. For example, the augmented reality system from Google is able to completely supplant and render useless all the usual mobile devices.
Finally
In conclusion, I want to emphasize that the possible reasons for the fall in Apple's shares described in the article are just an assumption.Obviously, in the near future nothing threatens the securities of Yabloko; they have a certain potential for further growth.