Apple Inc shares inched close to a record high on Monday as the stock market dipped overall on concerns of rising inflation. Shares of the world's mos
Apple Inc shares inched close to a record high on Monday as the stock market dipped overall on concerns of rising inflation. Shares of the world’s most valuable company increased 1.6%, to close the session at $124.04.
The tech giant has outperformed the broader market in the wake of the Covid-19 pandemic, buoyed by its highly successful iPhone 12 series and AirPods Max headphones. Apple has also been expanding its services and content offerings, which have been lucrative for investors.
Back in December, Apple announced its highly-anticipated 5G iPhones, that feature an overhaul of the internal components, faster download speeds, longer battery life and improved cameras. The tech giant is also expected to launch new products this year, such as a computer game console and augmented reality glasses.
Apple also continues to dominate in the wearables market, with Apple Watch and AirPods Pro leading the way. The company recently revealed that Apples services revenue in 2020 hit $53.75 billion, up 24%.
In addition, the company has been appealing to shareholders with its massive stock buyback program and generous dividend payouts.
Overall, the strong performance of the tech giant has had a positive impact on the Nasdaq. The Dow Jones Industrial average was down 0.28%, while the Nasdaq was up 0.38%.
Apple’s market capitalization is now $2.05 trillion, making it the second largest company in the world, behind Microsoft. With its near-record high stock prices, Apple is expected to maintain its position as one of the strongest performers in the stock market in 2021.
Apple Stock Nears Record High
The stock of Apple Inc. (AAPL) neared record highs in the month of August, 2020, as the company posted strong quarterly earnings.
Profit Soars as Apple Nears Record High
Apple’s quarterly earnings report revealed a $50.7 billion in revenue with a net profit of $10.5 billion in the first quarter of its 2020 fiscal year. That compared to $53.8 billion in revenue with a $11.5 billion net profit for the same quarter last year.
The profit was driven by strong sales of Apple’s flagship products, including the iPhones and MacBooks. Though revenue from iPhone sales fell year-over-year, the overall sales figure was offset by increased sales volumes for Macs and other products.
Reasons for Apple’s Success
Apple has flourished due to a number of factors:
- Innovative product line: Apple has consistently launched new products, such as the Apple Watch, iPad and AirPods, that have become popular and sold well.
- High customer loyalty: Apple has an incredibly loyal customer base that keeps returning to purchase its products.
- Strong distribution channels: Apple has leveraged its extensive network of retail stores, third-party retailers and online stores to reach a wide array of consumers.
- High-quality products: Apple has sought to produce high-quality products across all its product lines, ensuring that consumers remain satisfied with their purchase.
Outlook for Apple in 2020
With strong quarterly results and increasing stock prices, Apple is in an excellent position to remain profitable in 2020. The company is continuing to focus on innovation, customer loyalty and quality, and these efforts will likely continue to drive high sales and stock prices.
The company has also announced plans to launch its next product in September, the iPhone 12, which is expected to be a major success for Apple. All in all, Apple looks poised to keep setting record highs in the coming months.