Apple's Dr Evil Moment

TL;DR

Apple's share price has surged, pushing its market capitalization over one trillion dollars, fueled by strong third quarter earnings, growing revenues, and increasing iPhone prices.

Transcript

g'day and welcome to this week's video I think it'd be rude of me not to comment on Apple getting over the one trillion dollar mark late last week it's a Korean dollar market capitalization that's 1,000 billions so a number that's really hard to get our head round so it's definitely a doctor evil moment one trillion dollars but yeah how did they ho... Read More

Key Insights

• 🫷 Apple's share price has skyrocketed, pushing its market capitalization over one trillion dollars, highlighting the market's confidence in the company's growth potential.
• 🙂 Despite a slight dip in iPhone shipments, the ability to command higher prices and attract new customers contributes to Apple's overall growth.
• 😀 The app store and wearable business have been key sources of revenue growth for Apple.
• 💪 Future growth potential for Apple is supported by its unique and engaging products, as well as customer loyalty and the strong ecosystem.
• ✋ Apple's impressive growth in revenues and profits has solidified its position as a high-quality business in the technology industry.
• 😀 The services segment, including the app store and wearable devices, plays a significant role in Apple's overall performance and success.
• ✊ The pricing power of Apple's products demonstrates the value and quality that customers are willing to pay extra for.

Questions & Answers

Q: How did Apple surpass the one trillion dollar mark?

Apple achieved a one trillion dollar market capitalization by releasing impressive third quarter earnings, which significantly boosted its share price over a short amount of time.

Q: Why have iPhone sales, despite a slight decrease in shipments, been successful?

The success of iPhone sales can be attributed to attracting new customers to the ecosystem and the ability to command a 20% higher average selling price compared to the previous year.

Q: What has contributed to Apple's growth in services revenue?

The app store, where users buy apps, movies, and music, has experienced a 31% growth. Additionally, the wearable business, including Beats and the Apple Watch, has grown by 60% and generated $10 billion in revenue over the past year.

Q: Is Apple's future growth potential in question?

Apple's unique products and services, coupled with customer loyalty and engagement within its ecosystem, position the company for continued substantial growth in the future.

Summary & Key Takeaways

• Apple's share price has seen significant growth, with a nearly 20% increase in 2018 and a 46% gain in the past year.

• iPhone sales, although slightly lower in the quarter compared to the previous year, have seen a rise in average selling prices due to added features and customer loyalty.

• The services revenue, including the app store and wearable business, has also experienced substantial growth.