Apple (NASDAQ: AAPL) is the world’s largest publicly traded company and has a market capitalization that most competitors only dream of. A darling of the tech world and the investment world, Apple has become a household name with brand penetration that seemingly defies market norms. No matter the country, culture, or demographic, it is simply seen in a different light when compared to other tech companies.
Of course, this means that investors take plenty of notice when Apple releases their earnings reports.
For 2018, it has impressed the market yet again, announcing $88.3 Billion in sales from the final quarter of 2017.
Excellent Results May Be Followed by an Underwhelming Quarter
The results from the holiday period are nothing short of impressive, and it is results like these that have kept Apple stock high. Even when value takes minor slides, it’s never enough to get the long-term investors worried, and it’s one of the reasons why many new investors choose it as a ‘safe’ tech investment.
The problem moving forward is that Apple is downplaying their earning potential for the current quarter, hinting that actual sales could be well below Wall Street estimates. The company expects only around $62 Billion in sales by the end of March.
Analysts believe that this is largely due to the lackluster demand for the iPhone X, as well as decreased sales due to increase in unit pricing. Apple’s current phone models retail for around $105 more than the previous generation models. Although total units sold has decreased, the increase in price has helped the company to still hit phenomenal sales targets.
Apple Is Potential Important Events on the Horizon
One thing that current investors will want to note of, is that Apple has a financially promising year ahead, regardless of what happens with device sales. Dividends on it shares have been announced at $0.63 per share. The dividend has been made possible by law changes that will allow it to repatriate their $269 Billion stockpile of offshore cash, at a lowered flat tax rate.
Apple will use some of their remaining cash for investment within the United States and the company aims to generate 20,000 domestic jobs over the next five years. This could potentially mean bringing large parts of their manufacturing processes to the U.S.
In any case, Apple will continue to be a valuable stock for the foreseeable future, and the potential for continued high dividends should make them attractive to new investors.
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