Dear Reader,
Apple Inc, the smartphone, personal computer and tablet computer maker, is at a relative peak in its development. Apple is currently valued at 2.44 trillion USD by public markets.
Apple is looking to develop its services offering which which would complement its much larger hardware business.
Yes, revenue from Apple's services products is already big in both nominal terms and as share of Apple's revenues.
Actually, I think if Apple are to justify its current valuation, Apple has to develop, market and distribute a new hit hardware product. Now Apple's hardware products serve as a channel based on which services are sold.
In my opinion, Apple is worth around 1.4 trillion USD or much less than its current 2.44 trillion USD. Investors in Apple seem to be pricing in that the company will develop and start selling a hit hardware product. This is easier said then done. Microsoft for example, has not been able to develop a hit hardware product for decades.
However, as long as Apple is profitable the company will be able to invest in developing a new hardware product, which could change the fortunes of the company to even new highs.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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