Unarguably, a company which has become a generic name for innovation is what Apple Inc. (NASDAQ:AAPL) is all about. Apple Inc. (NASDAQ:AAPL) has grown several folds with all the innovation that it has brought to the technology world, however, whether or not the company has lived up to the unprecedented standards set by Steve Jobs is a question which remains largely unanswered.
Did iPhone 5 prove to be too tech savvy? Or it was Samsung‘s sheer brilliance that hindered iPhone 5’s sales so much that the stock price plunged to its lowest levels in years? The reasons may be several, but most of them are revolving around a single point that the sales figures have impacted the brand image that Apple Inc. (NASDAQ:AAPL) had built in all these years.
But, the larger question now would be, if I should invest? What about the whopping 82% market share that iPad has in the tablet market? This represents a perfect investor’s dilemma. I would suggest, let’s wait till the last word of this article. For now, how about having Apple Inc. (NASDAQ:AAPL)’s smart watch that the company is likely to add to its product portfolio soon, surpassing tablets, laptops, and smartphones?
Should I invest?
Although the company hasn’t implicitly stated that it will introduce any new product in the near future, the fall of 2013 and throughout 2014 could well be times when Apple Inc. (NASDAQ:AAPL) restores its pride as the most innovative company globally.
Should I invest in Apple Inc. (NASDAQ:AAPL) is the million dollar question that puzzles me. When I look at the stock market trends, Apple’s stock price of about 9 times its earnings, which is well below the average 15 times that the market is currently trading at, the plummeting of the stock price below $400, which was the lowest in the last two years, all of these could well be a reflection of the decreasing market share that Apple has experienced lately. While there’s nothing sadder than a momentum stock that’s lost momentum, current numbers certainly make Apple’s stock valuation all the more attractive, it’s trading at its lowest valuation in many years.
Not only this, but with speculations of innovative products to be launched at the end of this year and throughout next year, this could well be an ideal time to invest. And while trees don’t grow all the way to the sky, Apple has far greater innovation, greater revenue, and greater investor interest than many of its competitors. All of these are what an investor is ideally looking for. Also, not to forget is the impressive dividend yield of 2.80%, the numbers may just get you evaluate your excess funds that you currently hold.
Digging into financials
Apple’s latest product introduction was its 128 GB iPad late last year. In its latest quarterly earnings, the company reported $43.6 billion in revenue, up from $39.2 billion during the same quarter last year; however gross margins experienced a dip from 47.4% to 37.5%. Also, the company’s growth in terms of iPhone sales has been relatively sluggish than what it has been in the past, experts attribute this to the competition that Samsung has posed lately.