Parallel Profits Local Marketing Education Apple's share price has fallen around 20% over the past three months, almost wiping out all of the company's gains in 2018. Following this decline some investors may hesitate to buy more Apple shares. For those who had intended to buy and invest for the first time Is the decline in the value of the share price an opportunity to enter?
The whole market - especially the technology sector - has been hit hard in the recent period by strong concerns about the US-China trade war, as well as worries about a possible recession.
Investors with a long-term investment outlook know that fear does not build wealth, and that a firm's share price does not mean that the company has become a bad investment. Therefore, we will give you three reasons to encourage you as an investor to buy Apple shares now: https://www.parallelprofits.biz/
1. The average selling price of the iPhone.
It is no secret that iPhone's devices are the gold-plated hen at Apple, with sales of $ 37.1 billion in the fourth quarter, accounting for 59% of total revenue. The pessimists point to a fall in sales of iPhone units. Right, iPhone sales were steady in the last quarter over the past three years, with nearly 47 million devices.
But the adoption of this one-sided view would be a huge mistake, because Apple has balanced slow growth in the number of sales of its device, iPhone increase in selling prices. The average selling price of iPhone in the fourth quarter of this year was $ 793 from $ 618 in the same quarter last year. To increase its revenue from iPhone by 18%.
This is a very important indicator of the company's success, because with the slowdown in the sales of smartphones in the industry as a whole - not only Apple - Apple has been able to continue to raise revenue from the iPhone through the option to raise the price of its devices. This proves that the company's brand still has a very strong appeal capable of convincing its customers that its product is better purchased. https://parallelprofits.co.uk/
2. Apple's services are booming.
The continued success of iPhone is not Apple's only point of optimism. The company's growth rate among all its sectors over the past two years was its service sector. Services include everything from Apple Store to Apple pay, Apple music, AppleCare, and cloud storage options.
Apple's revenue grew by 27% in the fourth quarter of this year, and its services revenue exceeded Mac sales ($ 25.5 billion) and iPad sales ($ 18.8 billion) in fiscal year 2018. The company now has 330 million paid subscriptions in all its services - 50% higher than last year - Apple's management believes there is more room for growth in the future.
Services became the second largest sector in the company according to the size of revenues. If investors look at the sector's lucrative revenue streams, they will see this as a key element in Apple's future growth.
3. Wearable technology has an enormous independence.
Apple currently ranks first in Wearable Tech, outperforming its rivals Xiaomi and Fitbit. It not only dominates the market with Apple's watch, but the sales of its other wearable products are constantly increasing, including AirPos and Beats. Apple's wearable product sales grew by 50% in the fourth quarter of this year compared to last year.
Investors should keep in mind that the market for wearable technology is still in its infancy. Apple released the fourth version of Apple's watch now, plans for the first time to issue the AR glasses end of 2021, and expects that these devices will add $ 13 billion to its revenue by 2022.
To be more realistic, Apple does not do everything perfectly. There are aspects of improvement and development (the slowdown in iPhone sales is an example). However, Apple's core business continues to grow momentum. The company's recent focus on enhancing its services means that it adds continuous and recurring revenue that will complement the sales of the equipment. Apple has significant potential in the wearable technology sector, which has not yet fully exploited it. They may have a great opportunity in self-driving vehicle technology as well.
Given these three strong indicators, it would be wise for investors to look at Apple's shares now - especially since the recent drop in the share price means that Apple shares are now trading at only a 12-fold profit.
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