Apple, Inc. (AAPL) is one of the most well-known consumer electronics brands in the world. For most investors, the strong product development and widespread popularity are great reasons to invest in the company.
As Apple continues to create innovative new products, more investors will want to buy stock to earn returns. The value of each share continues to rise, and many experts predict continued growth in the coming months. So what's behind Apple's continued success? Here are six reasons why it's still wise to get on board the Apple bandwagon:
6. Still Undervalued
Although the stock is rising in price, many financial experts believe that it is still a great deal. A report published in Strategy Analytics showed that in the fourth quarter of 2014, Apple brought in 89% of smartphone profits, while all Android phones only made up 11% of the market. The overall global profit for smartphones also grew by $5 billion in the same quarter. The holiday season is a key part of these dramatic increases, and many holiday shoppers sought out brand new iPhone 6 for gifts. The phone is highly coveted among technology enthusiasts and consumers alike due to features such as the 4.7 inch HD Retina Display and its highspeed 4G LTE capabilities. Users can download apps and access social media from anywhere at any time, provided they are using a reliable network.
5. One Option Available
While there are hundreds of Android phones and tablets on the market, the iPhone and iPad are the only options for consumers who want to buy Apple products. Apple continues to update the product, but it limits the choices available to clients when they want new phones. Those who want the latest and greatest product will shop for the newest model, while Apple typically continues to offer support for the last couple of models. Because of this fact, vendors sell almost four times the number of Android phones per year, yet Apple smartphones make up eight times the profits.
4. Updates for All Carriers
Another benefit of Apple products is that they offer updates for all of their smartphones at the same time. Android updates are carrier-specific, which means that a T-Mobile customer who has the same phone as a customer with a different provider may receive an update several days or even weeks later. When Apple releases updates for iOS, all iPhone and iPad users receive the option to install the update immediately. This means that the company can work out bugs and fix issues for all users at once.
3. Potential to Double
A recent Forbes article indicates that Apple stock could still double in value. The reasoning is that Apple continues to market innovation in all aspects of consumer electronics. Not only do they release products that people simply have to have, but they also continue to change the way that users consume technology. Apple Pay is one of the simplest ways to pay for items, and the Apple Watch, which is due to release in April 2015, connects users at all times. Another reason is that while critics often compare Apple to Android, it isn't a realistic comparison because Android has so many products.
2. Copycat Products
When you look at any MP3 player, you can see how the designers drew influence from the iPod to create the look. Many smartphone manufacturers also use the iPhone as an example of how to design their own products, since it is clear from the numbers that consumers like the simple design and ease of use. Apple stock continues to rise because of these factors. When other companies want to create similar ideas, it means that this is what is selling in the marketplace and is generating success.
1. Hurdles to Climb
While the outlook is positive for Apple stockholders, there are some factors that will help the company to grow even faster. If they can keep the current margins while continuing to create innovative and desirable products, they will be able to increase in value and provide a generous profit for each shareholder. However, since Apple has a large volume of cash available without having any debt, it seems that they are on the rise in terms of the ability to continue creating new products and improvements.
When considering all of the factors, it is clear that investing in Apple is a choice that many investors continue to make each day. The various products available to consumers and innovation in everything that developers create combine to make for a great investment opportunity.
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