Apple is one of the largest corporations in the world, boasting a monster market cap of $2.7 trillion. It may be difficult to believe that the California-based company still has significant room to grow, but it does. Below read 3 reasons to buy Apple stock in 2022 – and hold for the long term.
1. iPhone sales are still going strong: During Apple’s fourth quarter of its fiscal year 2021, which ended on Sept. 25, 2021, Apple generated $38.9 billion in sales from its iPhone segment, representing a 47% jump compared to the year-ago period.
2. Apple’s booming services segment: Apple’s services revenue came in at $68.4 billion for the year, growing 27.3% compared to the fiscal year 2020. One major perk of this unit is that it boasts juicier margins than the rest of Apple’s business. In its fiscal year 2021, the company’s gross margin was 41.8%. Apple’s product gross margin came in at 35.3%, compared to 69.7% for its services unit.
3. Brand names matter: At this point, the company could sell almost anything at a premium by merely branding it with its prized logo. That’s something that will help maintain the company’s lead over its peers while it keeps delivering solid returns for its shareholders.
MacDailyNews Take: HomePod would beg to differ, but, hey, nobody bats 1.000.
We do, of course, recommend selling before you die, preferably while in good health, so you can enjoy the spoils!
Bottom line: Apple stock is a buy, even more so at the current deep discount. Apple has much headroom to grow into, especially in services and – ahem! – new products in new markets (AR/VR headset, AR smartglasees, EVs, etc.).
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