AAPL

Apple Inc. Common Stock

NASDAQ

Apple is a designer-centric company that likes to build all parts of a product — hardware, software, and online services —
itself. That approach has allowed Apple to make some of the most elegant and user-friendly products ever created. It
produces popular digital gadgets, including Macs, iPods, iPhones, and iPads. Apple's success is due in large part to its
obsessive focus on the user experience. Apple, more than half of Apple's revenue comes from iPhones. Macs and iPads
are also significant revenue sources. The strong performance of the iPhone today and the positive outlook for revenues
from services in the future ( which could allow the company to improve its revenue per customer over time even if the
iPhone product cycle slows) are reasons that Wall Street has found room for even more enthusiasm about Apple than it is
already shown. If there is one thing that Apple is good at, it has a consistent brand. Their clean, modern look and feel can
be seen across everything they do, and this helps people become familiar with them, no matter which channel they are
choosing to connect with them. Apple is also known for putting an ease-of-use as the primary goal when designing a
product. And as technology continues to advance, Apple still manages to create a product that works for absolutely
anyone using it. With the iPhone 11 now available, iPhone sales have rebounded, with even more robust growth than
analysts had expected, rising 8 percent in the last quarter from the quarter a year earlier. Sales growth has even been
strong in mainland China (although the Wuhan coronavirus outbreak gives reason to wonder if that trend will continue),
and CEO Tim Cook said on the company's earnings call that coronavirus-related uncertainty is a reason the company is
giving a wide range of possible revenue estimates for the current quarter. Nevertheless, they are giving investors guidance
that they should expect strong performance to continue.

The news was released on February 24, 2020, about Apple's iPhone XR is the most popular smartphone in the world in
2019, according to new data from Omdia. iPhone XR shipments were reportedly 9 million units higher than the next-best-
selling iPhone model, which was the iPhone 11, making the brand even more reliable and famous in the industry. On
February 27, 2020, another news was also released about the probability of an iPad Pro getting a smart keyboard with
trackpad, which would significantly blur the line between iPads and laptops, and inevitably, many customers will be
attracted and compelled to buy because of the convenience it brings. Lastly, the news was released on February 28, 2020,
about Lady Gaga's new music video shot entirely on iPhone 11: Lady Gaga's new single "Stupid Love" has an
accompanying music video. The Mad Max-inspired clip was shot entirely on an iPhone 11, although who knows what
additional attachments were used or what techniques were utilized in post-production. The thing is, it is very uncommon
for a popstar's music video to be shot by phone, and the result was quite impressive because of its high quality and
excellent cinematography. It would surely make a significant impact on the purchasing behavior of the customers.

However, the problem with being a product company, even if the products are excellent, there is still a need for customers
to keep replacing their products. Currently, the new model (iPhone 11) is driving customers to upgrade, mainly because of
its best new features. Now, rumors are spreading all over the internet about the upcoming launch of the iPhone 12,
introducing its best new features again in the market and would probably compel customers to pay for another upgrade.
The problem is that the possibility of a quality plateau, where product improvements from generation-to-generation are
not compelling enough to spur product replacements, is a medium-term risk to Apple's product sales growth. Since Apple
is trying to maintain its position for being one of the top leading brands in the market, it will do anything to keep its
popularity by continuing to surprise and delight customers. However, some customers are discouraged with one of its
strategies, wherein they stop giving software updates and protections with their old models (including iPhone 5s, iPhone 6
and others) although the phone is still usable, it is already not supported. Some people are also discouraged from buying
because the phones are getting bigger, and they are having a hard time holding their phones, making sure not to lose grips.
Apple operates in highly competitive markets, and in its devices business, it faces challenges in managing short product
cycles and adapting to shifting consumer preferences. However, Apple is back on its feet, and it is gaining back its
popularity (especially when they launched their new model), their performances have significantly increased this year. It
is just right to invest in the company.

JASMIN GRACE A. ABCEDE

Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ

Owing to its uniqueness and innovation in its wide range of products, Apple is regarded as the world's most
notable and recognizable brand for electronic devices that designs, develops, and sells consumer electronics,
computer software, and online services. The corporation's success is a result of strategic management that
exploits opportunities and protects the business from threats in the consumer electronics and information
technology services industries. Based on the assessment of all the factors in SWOT analysis, it is seen that
Apple has more of opportunities (e.g., high demand of products) and strengths (e.g., high brand recognition),
than to threats (e.g., the evolving environment of electronic communication) and weaknesses (e.g., high price).
Given the company's current leadership in the industry, Apple is in a position to enjoy these opportunities.
However, the company should devise a few strategies to address effectively the threats and weaknesses that it
recently developed or has chances of developing. 
The news was released on March 5, 2020, about Apple, scheduling to premiere three of the most significant
new series at the 2020 SWSX Film Festival from the Apple+ streaming service, all of which have been canceled
due to the outbreak of coronavirus. Another news was released on March 6, 2020, about Apple supplier
Foxconn reports worst monthly revenue decline in seven (7) years. The coronavirus has had an enormous
impact on Apple's supplier Foxconn. The Taiwan-based iPhone assembler has experienced a severe decline in
its monthly revenue for February. It was Foxconn's most significant monthly revenue decline in seven years,
according to one Reuters report. The outbreak of COVID-19 coronavirus overwhelmed investors, leading some
to react as if the sky were falling. The Dow Jones Industrial Average, the S&P 500, and the NASDAQ
Composite all officially entered correction territory last week, each down more than 10% from recent highs, as
concerns about the spread of the disease continue to dominate the world stage. With that in mind, Apple is still a
worthwhile investment and has plenty going for it, even as fear grips the market, and the Wall Street lump
continues, here are the three reasons why:
Firstly, reports of iPhone's death have been greatly exaggerated. There is little doubt that smartphone sales are
slowing, which will put a dent in the iPhone's future growth prospects. Worldwide smartphone shipments fell in
2018 but appeared to turn the corner in 2019. The company also reported its highest quarterly revenue ever,
when the sales of the iPhone grew by the strong demand for the iPhone 11 and iPhone 11 Pro, showing the
reports of its demise are overstated. Secondly, Apple CEO Tim Cook had famously predicted the company
would double its 2016 services revenue by the end of 2020, a goal the company will likely achieve ahead of
schedule. CFO Luci Maestri pointed out that the company had already reached the benchmark on a run-rate
basis. Many of the company's services also achieved records, including cloud services, music, payment services,
App Store, and Apple Care. Also, Apple introduced several new high-profile services, including Apple Card,
Apple News+, Apple Arcade, and Apple TV+, which are just getting started. With an installed base of more
than 1.5 billion active devices in the field, there is a massive captive audience for Apple's services, which will
continue to grow from here. Lastly, Apple's shareholder-friendly practices. Apple resumed paying a dividend in
early 2012 after a nearly 17-year hiatus, but since then, the company has become a dividend-paying dynamo.
Apple raised its dividend every year since, more than doubling the payout in just seven short years. Given that
the company has hiked its dividend in each of the past seven years, it is not a stretch to expect another increase
for the following months.
It is important to note that with the ongoing outbreak of coronavirus, Apple shares initially took a beating,
before regaining some of their losses. With the bulk of its manufacturing and its second-largest consumer
market in China -- the country currently hardest hit by the health crisis -- there will be no doubt of short-term
disruption to Apple's business and its stock price will continue to be volatile until the outbreak has run its
course. Nevertheless, Apple thrives in the electronic device industry, despite the challenges because it
demonstrates an impressive ability to adapt to a challenging environment. The uniqueness in its design gives the
company a competitive advantage, which reflects in their sales and revenues. That said, with all the things
working in its favor, investors should ignore the headlines and buy Apple stock.
 
JASMIN GRACE A. ABCEDE
Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ

 Technology company Apple Inc. has evolved over the years from a comparative niche producer of private
computers into a wide-ranging maker of electronic devices and supplier of services that's one in every of the
foremost extremely valued in public listed firms within the world. Technical innovation, paired with minimalistic
designs and creative advertisements, as well as the leadership of the former CEO Steve Jobs, have made Apple one of the
most valuable brands in the world. The Company's success translates into strong brand loyalty, as well as into
unparalleled revenue growth, from 8 billion U.S. dollars in 2004 to more than 260 billion in 2019.  Apple Inc. designs,
manufactures and markets mobile communication and media devices, personal computers, and portable digital music
players. The Company sells a range of related software, services, accessories, networking solutions, and third-party digital
content and applications. Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio
of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud,
Apple Pay and a range of accessory, service and support offerings. 
 
The news released on March 10, 2020, when Apple decided to postpone a March product launch event after continuing
delays in the production of an expected successor to the iPhone SE, an insider source at Apple confirmed. Several other
problems played into the decision to delay the event that was being planned, including the worsening impact of the
COVID-19 strain of the coronavirus in California and elsewhere. Apple executives reportedly had voiced some concern,
according to the source, about being unable to ensure 'social distancing' at a public event in a confined building with
people sitting next to each other. That event would likely have been the launch of the rumored iPhone 9, a mid-ranger
destined for developing markets. Additionally, iPhone sales in China took a massive hit, and production for the iPhone 12
— expected in September — could be facing setbacks, too. On that note, another news released on March 13, 2020,
Apple's next iPhone - the presumably titled iPhone 12 - could finally come with a feature many Android flagships have
had for years now. A ToF camera, which isn't entirely new to the market, given that its android competitors already had
this set last year. In addition, Apple's highly anticipated 5G iPhone could see its fall release delayed by a month as a result
of the outbreak. The firm cited a conversation with an expert on the company's supply chain, Elliot Lan. Lan also expects
the launch of the iPhone SE2 will be delayed "by a few months" due to "both supply issues as well as the weaker demand
environment from COVID-19."

As many people know, Apple is one of the large stocks that may be most susceptible to a near-term effect from the
coronavirus. Last quarter, Greater China accounted for 14.8% of Apple's revenue. Not only does Apple have a fair amount
of its supply chain assembly in China, but China also accounts for a good chunk of Apple's demand. In greater China,
Apple's reported revenue returned to growth in 2020, with revenues of $13.58 billion, rising from $13.17 billion last year.
That amounts to a 3.1% earnings growth rate year-over-year. Going forward, Apple has a comprehensive revenue
prediction for China in the coming second quarter due to growing concerns and uncertainties surrounding the spreading
coronavirus, CFO Luca Maestri said. Apple might be an American company, but its success undeniably links to China and
what is happening there, so it is vital to keep an eye on China-related news before buying AAPL stock.

Apple's second-quarter results are expected to be released around the end of next month. Currently, Wall Street expects
adjusted earnings of about $2.71 a share and revenue of $61.5 billion. The consensus for earnings has dropped 9.6% over
the past month, according to data compiled by Bloomberg, while the revenue view is down 5.5% over the same period.
On a more positive note, Nomura Instinet analyst Jeffrey Kvaal stood by his recent comments that Apple's supply chain
was seeing a faster recovery than he expected. The "risk of a major supply shock is declining," he wrote. Supply
constraints "seem likely to be short term in nature." Last quarter, Apple repurchased a whopping $20.7 billion of its stock
as the share price surged from the low $200s to a recent high of $327.85 in late January. While there could be some
adverse effects this quarter or even the rest of this year from COVID-19, Apple's long-term value shouldn't be affected.
Now that Apple's share price has dropped back to the low $270s, its share repurchases will be retiring more shares than
they otherwise would have. As such, share repurchases at more economical prices today will benefit shareholders over the
long-term once the market stabilizes. Thus, the investors should still invest in Apple.

JASMIN GRACE A. ABCEDE

Equity Analyst
AAPL
Apple Inc. Common Stock
NASDAQ

JASMIN GRACE A. ABCEDE

Equity Analyst