How much higher can the Apple share price go?
The Apple (NASDAQ:AAPL) share price has grown 12% since the start of the year. But the staggering improvement of 160% since the pandemic market crash has pushed investor expectations higher.
The huge market capitalisation makes investors like me wonder much higher the stock will go. I’ve previously discussed the firm’s future growth potential. But since then, new information has come to light. So let’s explore how much higher can the Apple share price go.
The Apple share price performance
Since the pandemic crash, the Apple share price has made a remarkable comeback. The tech giant not only regained its pre-pandemic price level, but it has also escalated to new heights.
In addition to the record high market cap, the iPhone maker has become a lucrative investment after earning the top position in the world’s best global brands for the ninth consecutive year. In my opinion, Apple’s diversification into new fields like health care, subscription services in entertainment, data-storage, and music is one of the prime reasons behind its success.
Apple has been facing some serious supply chain issues recently. The intensity of this crisis can be gauged from the fact that the consumer electronics company has cut its iPhone 13 production targets for the year. Low supply for the hot-selling item in the upcoming holiday season will dampen the holiday spirit of customers. In addition, the risk of losing customers to competitors can have serious lasting effects on the company’s financials.
In response to this crisis, the tech giant has hit the market with multiple devices launches in the past couple of months. This has enabled the company to mitigate the adverse impact of the low availability of iPhones. In September, the new iPhone was launched along with Apple Watch and other iPad models. A month later, the company launched its new MacBooks and Air Pods.
The business has proved that it is undoubtedly the leader of the industry, in my mind. And it plans to hold this position for a long time.
Apple’s competitive advantage
The smartphone giant has been able to provide complete user privacy to its customers. In today’s world, user activity data is the bread and butter for advertisement companies. So this decision has made it harder for advertising companies to serve targetted commercials to individuals on an Apple device.
But, the firm is looking into building its own advertisement business. Assuming this is successful, this new revenue stream could be substantial. Needless to say, I think this could escalate the Apple share price even higher.
What should I expect from the Apple share price in near future?
The Apple share price is crawling in the upward direction. And this growth appears to be driven by investor anticipations surrounding its latest devices and new revenue streams. In my opinion, slow and steady wins the race. So, will this stock price break records as it did with its market capitalisation? I believe it will over the long term. That’s why I’m considering this business for my portfolio.
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Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned at the time of writing. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.