Apple shares are a great investment because they offer $200bn of cash.
Another reason is that the company is currently in an iPhone “supercycle”, where users can upgrade their handsets to get an ‘all-new’ iPhone model.
The fourth quarter 2020 revenue from the iPhone 12 was $65bn, with $90bn for the first quarter 2021. The iPhone 13 will be available by the end this year.
Apple customers are loyal and many buy more products. This is evident by the 1 billion users of 1.6 billion Apple products.
Apple is aggressively expanding its market share in the “wearables” space, which includes tablets and laptops. Apple had 36% of the wearables market in 2020 and brought in $30.6bn revenue.
Apple’s services division (AppStore, Apple Music and Apple Pay) earned $54 billion.
Apple became the first company worth $2tn after it was founded in 2002. It’s resilience was evident in Q1 2020. While most shares were in freefall because of the coronavirus pandemic in 2016, Apple shares fell 25% before recovering fully in Q2.
The shares didn’t stop there. They climbed to $145 in a year, a gain of 141%. Is there a pandemic?
Wedbush analysts are avid fans. They have a price target for $185 for the shares, which is 36% more than the current price.
Analysts will likely revise share price targets north at $200 if Apple’s Q3 earnings updates on 27 July surpass expectations.
Reassessment level – $110.Below this level, trading will result in a breakdown of rising support
