Post by The Big Daddy C-Master on Jan 12, 2016 15:28:16 GMT -5
www.investopedia.com/articles/markets/010616/3-predictions-apple-2016-aapl.asp
Apple Inc. (NASDAQ: AAPL) had a great year in 2015. The year was unprecedented, as it made more money as a company than it ever had. The release of the highly anticipated Apple Watch, a newly upgraded Apple TV and huge sales of the iPhone helped propel the company to where it is now. However, in the world of technology companies, it's not about where they've been but where they are going.
2016 should turn out to be another stellar year for Apple in terms of breaking records, entering new markets, and continuing to be a fixture and a leader in the industry. Apple will be under the public spotlight for investors and consumers.
Shares Rebounding
As an incredibly successful technology company, it’s hard to imagine that Apple's price-to-earnings (P/E) ratio is where it is. Apple had a run in the $130 range earlier in 2015, but by the end of the year, share prices went down to the $105 level. 2016 could be a year that sees share prices rising as opposed to the stagnant year Apple had in the stock market in 2015.
Apple has just announced its earnings for the 2015 fiscal year, reporting around $250 billion in revenue for the year. This was one of the best years by far for the business, and many analysts are expecting the stock to follow suit. Earlier in 2015, Apple was the world’s first $700 billion company. With a price target of $149 per share, Apple would have a market capitalization of $831 billion.
To get to this point, Apple shares would have to increase by roughly 20%. This is definitely not out of the question, as the company will be trying new strategies to become more profitable and better equipped in its field. Apple will need to continue to increase its share in the smartphone market by entering China and other emerging economies.
New Acquisitions
Apple had a modest year for acquisitions in 2015. During Apple’s earnings conference call, CEO Tim Cook said that Apple had acquired 15 companies during the year. They were mostly small companies that fit with the overall future plan for Apple. There were no major deals such as the Beats headphones deal of 2014.
At Apple shareholder meetings, a lot of investors have been throwing around ideas about acquiring Tesla, the electric car maker. Cook has sidestepped that question many times, and Elon Musk has said he does not wish to sell the company, even though Apple approached him for talks.
A more promising large acquisition could be GoPro. As Apple slowly makes its way into the wearable market with the Apple Watch, it could integrate the GoPro into its product lines. Acquiring this company would give it more exposure to the market. GoPro just recently announced that it is launching a camera control feature for the Apple Watch.
Apple needs to look towards the future and into a new market. As smartphones become more commonplace and saturated, it needs to find the next best thing. This could be virtual reality. Companies such as Facebook and Microsoft are already entering that market through Facebook's acquisition of the Oculus Rift and Microsoft's development of HoloLens. GoPro could prove to be an entry point into the new market.
IPhone Sales Decline and Entering New Markets
IPhone sales have increased every single year since they launched in 2007. In the last quarter, iPhone sales made up 60% of Apple's $51.5 billion in revenue. IPhone sales are integral to the success of the company and its share prices. If the sales begin leveling out and dropping, investors are going to get worried.
Cook has yet to announce official earnings for the Apple Watch. There is the possibility that the revenue from this product could offset a potential iPhone sales decline. If sales do decline, there are two compelling options the company could take, aside from the expected release of a new model.
Apple can focus even more on entering these new non-Western markets and selling iPhones there. This will help to stop potential declining sales and give Apple the opportunity for even more growth.
Apple's other option is to increase its reach on new products such as the Apple Watch and Apple TV. It's a twofold process that benefits the company in multiple ways. More compelling Apple products that require iPhones to function will lead consumers to want to buy iPhones as well. Apple can potentially mitigate any decline in sales by providing products that entice consumers to need iPhones.
Apple Inc. (NASDAQ: AAPL) had a great year in 2015. The year was unprecedented, as it made more money as a company than it ever had. The release of the highly anticipated Apple Watch, a newly upgraded Apple TV and huge sales of the iPhone helped propel the company to where it is now. However, in the world of technology companies, it's not about where they've been but where they are going.
2016 should turn out to be another stellar year for Apple in terms of breaking records, entering new markets, and continuing to be a fixture and a leader in the industry. Apple will be under the public spotlight for investors and consumers.
Shares Rebounding
As an incredibly successful technology company, it’s hard to imagine that Apple's price-to-earnings (P/E) ratio is where it is. Apple had a run in the $130 range earlier in 2015, but by the end of the year, share prices went down to the $105 level. 2016 could be a year that sees share prices rising as opposed to the stagnant year Apple had in the stock market in 2015.
Apple has just announced its earnings for the 2015 fiscal year, reporting around $250 billion in revenue for the year. This was one of the best years by far for the business, and many analysts are expecting the stock to follow suit. Earlier in 2015, Apple was the world’s first $700 billion company. With a price target of $149 per share, Apple would have a market capitalization of $831 billion.
To get to this point, Apple shares would have to increase by roughly 20%. This is definitely not out of the question, as the company will be trying new strategies to become more profitable and better equipped in its field. Apple will need to continue to increase its share in the smartphone market by entering China and other emerging economies.
New Acquisitions
Apple had a modest year for acquisitions in 2015. During Apple’s earnings conference call, CEO Tim Cook said that Apple had acquired 15 companies during the year. They were mostly small companies that fit with the overall future plan for Apple. There were no major deals such as the Beats headphones deal of 2014.
At Apple shareholder meetings, a lot of investors have been throwing around ideas about acquiring Tesla, the electric car maker. Cook has sidestepped that question many times, and Elon Musk has said he does not wish to sell the company, even though Apple approached him for talks.
A more promising large acquisition could be GoPro. As Apple slowly makes its way into the wearable market with the Apple Watch, it could integrate the GoPro into its product lines. Acquiring this company would give it more exposure to the market. GoPro just recently announced that it is launching a camera control feature for the Apple Watch.
Apple needs to look towards the future and into a new market. As smartphones become more commonplace and saturated, it needs to find the next best thing. This could be virtual reality. Companies such as Facebook and Microsoft are already entering that market through Facebook's acquisition of the Oculus Rift and Microsoft's development of HoloLens. GoPro could prove to be an entry point into the new market.
IPhone Sales Decline and Entering New Markets
IPhone sales have increased every single year since they launched in 2007. In the last quarter, iPhone sales made up 60% of Apple's $51.5 billion in revenue. IPhone sales are integral to the success of the company and its share prices. If the sales begin leveling out and dropping, investors are going to get worried.
Cook has yet to announce official earnings for the Apple Watch. There is the possibility that the revenue from this product could offset a potential iPhone sales decline. If sales do decline, there are two compelling options the company could take, aside from the expected release of a new model.
Apple can focus even more on entering these new non-Western markets and selling iPhones there. This will help to stop potential declining sales and give Apple the opportunity for even more growth.
Apple's other option is to increase its reach on new products such as the Apple Watch and Apple TV. It's a twofold process that benefits the company in multiple ways. More compelling Apple products that require iPhones to function will lead consumers to want to buy iPhones as well. Apple can potentially mitigate any decline in sales by providing products that entice consumers to need iPhones.
