Investing in Apple Stock (AAPL)

Apple Inc. (AAPL) is a worldwide expertise firm that designs, manufactures, and sells smartphones, private computer systems, tablets, wearables, and equipment. A few of its essential merchandise embody the iPhone, the Mac line of non-public computer systems and laptops, the iPad, the Apple Watch, and Apple TV. The corporate additionally has a fast-growing companies enterprise that features its iCloud cloud service and its digital streaming-content companies, corresponding to Apple Music and Apple TV+.

Apple was based in 1976 by Steve Jobs and Stephen Wozniak. The tech large began out working from the Jobs’ household storage and has since grown right into a diversified expertise behemoth. A part of Apple’s progress technique has been to buy small tech corporations that it will probably simply combine into its increasing line of merchandise. 4 years after its founding, on Dec. 12, 1980, Apple went public via an preliminary public providing (IPO) at $22.00 per share. Its inventory trades on the Nasdaq World Choose Market.

Apple’s headquarters is situated in Cupertino, Calif. Tim Cook dinner has been chief govt officer (CEO) since 2011. Apple is assessed as a member of the knowledge expertise sector. It operates inside plenty of industries, together with laptop {hardware} and expertise, video streaming, and cloud computing. The corporate faces quite a few opponents, together with smartphone producer Samsung Electronics Co. Ltd. (KRX:005930), laptop producer Dell Applied sciences Inc. (DELL), video streaming firm Netflix Inc. (NFLX), and different large expertise companies like Microsoft Corp. (MSFT). Apple posted web earnings of $57.4 billion on web gross sales of $274.5 billion in FY 2020, which ended Sept. 26, 2020.

Key Takeaways

  • Apple manufactures smartphones, private computer systems, tablets, wearables, and equipment, and provides digital streaming-content companies.
  • Apple’s rivals embody Samsung Electronics Co. Ltd. (KRX:005930), Dell Applied sciences Inc. (DELL), Netflix Inc. (NFLX), and Microsoft Corp. (MSFT).
  • Apple earned web earnings of $57.4 billion on $274.5 billion of web gross sales in FY 2020.
  • A federal decide dominated in September 2021 that Apple should loosen its App Retailer restrictions to permit builders to offer hyperlinks to different fee methods.

Apple’s Latest Developments

  • On June 10, 2022, Apple’s CEO, Tim Cook dinner, despatched a letter to the U.S. Senate in help of the American Knowledge Privateness and Safety Act. If handed, the act would restrict knowledge assortment by tech companies.
  • On June 6, 2022, Apple’s World Large Builders Convention started. It began off with six main bulletins together with a two new MacBook designs and new working methods for iPhone, iPad, and Apple Watch
  • On Could 17, 2022, Apple introduced it might be rolling out new accessibility options geared toward serving to individuals with disabilities extra simply use its merchandise.
  • On Could 5, 2022, Apple, together with Google and Microsoft, introduced they had been working to develop help for a common, password-free login for customers.
  • On Could 2, 2022, the European Union introduced it was shifting ahead with an antitrust case towards Apple. Among the many points raised is that Apple’s Apple Pay program stifles opponents and innovation.
  • On April 28, 2022, Apple launched its Q2 FY 2022 monetary outcomes. Income was $97.3 billion, a 9% year-over-year improve, and earnings per share (EPS) had been $1.52, an 8.6% improve. Each numbers exceeded analysts’ expectations.
  • On April 27, 2022, Apple introduced a that it might start promoting components, instruments, and manuals to assist prospects make sure repairs to sure iPhone fashions.
  • On Sept. 10, 2021, a U.S. district decide ordered Apple inside 90 days to start letting builders ship prospects outdoors Apple’s App Retailer for funds. Apple received an vital partial victory, nevertheless, as a result of the decide didn’t discover that Apple had a monopoly on the cell recreation market. (See particulars in Q&A beneath).

Apple briefly grew to become the world’s first $3 trillion firm throughout intraday buying and selling on Jan. 3, 2022. The iPhone maker additionally holds the excellence of being the world’s first firm to succeed in $1 trillion and $2 trillion.

What’s Taking place with Antitrust Fits Towards Apple?

Along with antitrust litigation associated to its App Retailer, Apple faces a number of different antitrust lawsuits, together with these beneath.

On Oct. 6, 2021, Reuters reported that the European Union (EU) will quickly file an antitrust cost towards Apple over the corporate’s near-field communication (NFC) chip expertise, in line with individuals accustomed to the matter. The chip expertise permits for tap-and-go funds on iPhones. The cost follows an investigation into Apple Pay launched final 12 months by the EU. The EU regarded into whether or not Apple engaged in anticompetitive conduct by refusing rivals’ entry to Apple’s fee system. The EU’s essential focus now could be the corporate’s NFC chip.

On April 30, 2021, the European Fee, the EU’s antitrust regulator, charged Apple with levying excessive fee charges within the App Retailer and prohibiting builders from offering data on other ways to make use of their companies.

Has AAPL Ever Cut up Its Inventory?

Apple’s inventory has cut up 5 instances on the dates beneath:

  • Aug. 28, 2020: a 4-for-1 inventory cut up.
  • June 9, 2014: a 7-for-1 inventory cut up.
  • Feb. 28, 2005: a 2-for-1 inventory cut up.
  • June 21, 2000: a 2-for-1 inventory cut up.
  • June 16, 1987: a 2-for-1 inventory cut up.

Does AAPL Pay a Dividend?

Sure. Apple pays a quarterly common money dividend of $0.22 per share.

How Many Shares of AAPL Inventory Are There?

As of July 16, 2021, Apple had 16,530,166,000 shares excellent.

How Worthwhile Is Apple?

Apple had a web earnings of $21.7 billion for the quarter that ended June 26, 2021, in line with its most up-to-date quarterly submitting, which was launched on July 28, 2021. That is a 93.2% year-over-year (YOY) improve from the identical quarter in 2020. It additionally reported quarterly income of $81.4 billion, a 36.4% YOY improve, and earnings per share of $1.30, a YOY improve of 100%.

Who Owns the Most Apple Inventory?

The most important particular person insider shareholder of Apple is Arthur Levinson, who has been the corporate’s chair of the board since 2011. As of Feb. 2, 2021, Levinson owns 4.5 million shares of Apple inventory. The most important institutional shareholder of Apple is The Vanguard Group, which owns 1.3 billion shares, representing 7.8% of whole shares excellent, in line with the corporate’s most up-to-date proxy submitting, reflecting the variety of shares as of Jan. 5, 2021.

Who Invented the Apple iPhone?

The late Steve Jobs, co-founder and former chair and CEO of Apple Inc., invented the iPhone together with his crew of engineers and designers within the early 2000s. Jobs introduced the primary iPhone in January 2007 on the Macworld convention throughout an hour-long presentation. After the announcement, Apple scrambled within the following months to show Jobs’ demo cellphone right into a mass-market product. The primary iPhone was launched to the general public in June 2007.

Who Is Apple’s CEO?

Tim Cook dinner is CEO and serves on the corporate’s board of administrators. Previous to assuming the CEO place in 2011, when he succeeded Jobs, Cook dinner was Apple’s chief working officer (COO). He additionally frolicked main the corporate’s Macintosh division. Cook dinner has been with the corporate since 1998.

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