Apple (AAPL) started just a year after Microsoft and has remained in league with it over the years. How is the stock managing so far and what does it hold in store for the share holders?
Apple has been making impressive phone available to the common buyer for decades now. With heavy competition, it has also had its share of highs and lows. But, whatever the state of matters be, Apple continues to be a share that you can bank on.
Quarterly Report:
The quarterly report showed a figure of $13.1 billion, $14.50/share, which by itself is a pretty good number. Moreover, Apple generated a cash flow of $22.7 billion and revenue was up by 6%, landing at $57.6 billion. As for the balance sheet cash, the $40.8 billion is more than satisfactory with a luxurious $45.70 per share value. With a PEG of 0.6, Apple has been trading at eleven times forward earning. Despite the heavy competition from the South Korean Samsung, Apple has sold about 26 million iPads and 51 million iPhones recording a solid increase of 13% and 7% higher shipments.
Small Shares but Immense Profitability:
Apple has taken it shares of highs and lows. The income generation of Apple in Q1 was initially $17.4 billion. Though Samsung might look to have the upper hand, one must note that Apple has managed to accomplish this fete by sticking to just the high-end market portion while Samsung generated a $22.9 billion over a broad assault. All this and Apple competed without a ‘large’ phone. If it had a bigger screened phone, we can only imagine the plight of its peers. So for those who are thinking that the shares of Apple are going south, you might be in for a surprise soon!
A Comparison:
Apple has managed to grow in the share market by 0.6 percent since November, thanks to the slip of Blackberry and Android. Microsoft, another competitor, has not been able to catch up with the mobile Technology and failed to gain ay traction in the past few months. Overall, the mobile world has pulled down the shares of biggest companies, but Apple has managed to sustain a big fall. Apple has ample potential and the figures gathered over the years are proof for it. Despite the mundane state, it still remains an excellent choice of investment in comparison with the other mobile companies.
