Apple Stock: Here’s Why It’ll Keep Growing in 2018

Posted On January 10, 2018 3:15 pm

Apple Inc.(NASDAQ:AAPL) is in the news after investment firm UBS said in a report that the demand of iPhone X seems strong. Apple has also announced that it will issue a patch to fix the possible security flaws in its iPhones and Macs which resulted due to the problems in Intel chips. Apple stock remains one of the best investments to make in 2018, for several reasons we’ll explore here.

Apple is one of the biggest beneficiaries of the latest tax repatriation plan approved by the GOP. Apple has over $252 billion of cash held in international locations. The company will now be able to bring back its cash and use it instead of raising capital and borrowing money.

Apple is making a strong impact in the wearable market. Apple Watch’s latest version is becoming very popular especially in Asia. Apple Watch is also being used massively in the tele-medicine market, where doctors recommend patients to use technology gadgets and wearable devices to track their health. According to an estimate by IHS Market, there will be about 5.4 million mobile consultations in the USA alone by 2020.

Apple has plans to expand its wearable devices in the medical sector. The company is working on optical sensors that track blood sugar. Apple’s “Care Kit” program is also getting famous among doctors worldwide. Several estimates show that Apple Watch has become the market leader in the wearable devices industry, making this a powerful growth catalyst for Apple stock.

Analysts think that Apple’s efforts in China are working. Estimates show that 44% of new smartphone activations in the holiday seasons were related to Apple’s devices. Out of these activations, 14.7% were of iPhone X, while the iPhone 8 represented 8.1%. iPhone SE and iPhone 7 are also becoming very popular in China. Apple is swiftly beating its low-cost competitors like Xiaomi. Apple’s CEO Tim Cook has been actively visiting China and meeting local authorities. In October, Apple opened its first ever data center in the country.

Asia now accounts for 31% of Apple’s total revenue. Analysts think that Asians will buy more iPhones in the future. Internet penetration is still paltry in Asia. More and more people are getting access to the internet daily in Asia. As a result, people are buying more phones. Apple is doing the right thing by focusing its attention more in Asia.

Apple is also on track to become the first $1 trillion market cap company in the world. Last month, Barron’s published a detailed article in which the possibilities of Apple hitting $1 trillion market cap were discussed. The article quotes David Pearl, co-chief investment officer at Epoch Investment Partners. Pearl thinks that even if Apple’s iPhone business loses steam, Apple stock is still slated for growth because the company’s services revenue is increasing.

 Related: Here’s Why General Electric is Poised for a 2018 Comeback

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