While investors are increasingly focused on Apple's services business as a long-term growth catalyst, the iPhone still has a lot of potential to win new customers. That gives it a huge war chest it can use to market itself and invest in new growth initiatives. That's more free cash flow than Microsoft, Amazon, and Meta Platforms combined. Over the last year, it generated a staggering $97 billion in free cash flow on $387 billion in total sales. Still, Apple's growth in free cash flow in recent years points to a prosperous future. These headwinds have sent the stock down in the past 15 months, and while it has recovered somewhat from its recent lows, it's still off by 9% from where it traded at the end of 2021. Specifically, iPhone sales, which provide most of Apple's revenue, dipped by 8% year over year in the quarter that ended Dec. Inflation and supply chain issues have pressured the company's sales. That's a big reason why Apple was able to double its installed base of active devices to more than 2 billion over the past seven years.Īpple is not without risks. The tech giant is relentless in improving the usefulness of its iPhones, Macs, and other devices, which has led to consistently high customer satisfaction scores. Brand Finance's prestigious Global 500 list ranks Apple as the second-most-valuable brand in the world.
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