Apple (NASDAQ:AAPL), long renown as one of the trailblazers of America's booming tech industry and one of the most-watched companies around the globe, continues to enjoy the confidence of investors well into its 41st year of operations. The California-based tech behemoth recently enjoyed the public espousing of support for its prospects by Warren Buffett, and would-be shareholders have few, if any, reasons to believe the company will be enjoying a dismal future.
Users Remain Glued To Their iPhones
One of the simplest reasons Apple will continue to be a success in the immediate future was pointed out by Warren Buffet, one of the world’s most prominent and successful investors, recently when he noted that customers everywhere remain glued to their iPhones. While most Wall Street analysts concern themselves with revenue figures and net losses, Buffet has remained famous – and exuberantly wealthy – thanks to his simplistic and contextual approach to investing that often looks at the broader market, rather than any one specific fact.
It almost goes without saying that when it comes to determining Apple’s future, Buffet is right on the money as always; iPhones are so addictive and hard to break away from that an early designer of the product has recently gone public with pleas that Apple make the device less addictive. It’s hard to argue to investors that their money isn’t soundly invested in Apple when some of the company’s leading employees of the past beseech it to make its leading product less addictive to the masses, such is the level of success it enjoys in the market.
Of course, other business fundamentals buoy Buffet’s analysis, too; Apple shares are on the verge of a record high, and there are few conventional reasons to believe that the company will be ousted from its preeminent position within the tech industry anytime soon. Apple is continuing to funnel out exciting new products, an essential facet of any successful tech company, and likely won’t be wanting for innovation anytime soon. While the company has been justifiably criticized since its founder and lead innovator Steve Jobs passed away, it would be unfair to Apple to insinuate that with the loss of its founder, the company lost all ability to create new, desirable products and services.
As long as investors continue to make like Buffet and buy more into Apple than in any other stock, tech or otherwise, the iPhone-making behemoth will likely remain at the top of global financial leaderboards for some time.
Apple Is More Than One Product
Much in the same way that it would be have been foolish to write off Apple’s future after Steve Jobs passed away, it would be ludicrous to insinuate that the company is only a success because of the iPhone, too. It’s important for investors to remember that Apple is more than its most iconic product, and is indeed a sum of all its parts; a large part of the company’s profitability stems from the fact that, once users are roped into buying one Apple product, they frequently buy another.
There are more than 1 billion Apple devices speckled around the globe, and that figure is only likely to grow in the immediate future; as the internet of things continues to extend its grip across the market, consumers everywhere will find themselves relying not only on Apple gadgets, but using Apple services, too. These means that the company will have a consistent userbase, like Ice Gold investing, to offer alluring new services and gadgets to for decades, and will continue to collect mountains of valuable user-data it can use to cut wasteful operations and boost effective ones.
With Apple planning on offering lower priced models in the immediate future, expect its consumer base to grow in shape as well as size; if the trend of lower-priced models continues, it’s not unlikely that Apple products and services become commonplace in low-income households as well as middle-to-high-income households. Apple may occasionally miss sales expectations, and will continuously face intense regulatory pressures from officials who believe it’s too big to fail, but the company has a wide-open future and many options to consider when it comes to securing tomorrow’s profits.
Don’t lose faith in Apple; the tech behemoth isn’t going anywhere soon, and will likely remain a staple of the American tech market for the immediate future. Seasoned investors like Warren Buffet continue to see the allure in Apple stock for good reasons, as the company remains one of the most addictive and innovative players in the global marketplace today. While competition from private companies like Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) hoping to give Apple a run for its money can be expected, the iPhone maker and Mac champion will continue to survive and thrive in the tech scene for years to come.