With $83 billion evaporated overnight, apple, 43, is facing a midlife crisis?

After October 29, the company released its fourth quarter financial report in 2020. Apple’s shares fell 4.22% after the results were released. As of the U.S. stock research agency, Apple shares at $110.47, with a total market value of $197 million. < / P > < p > the iPhone 12 series failed to be released as scheduled in early September this year, which really caused market volatility, which was directly reflected in the stock price. Apple’s stock price has been in a downward trend since the high of $137 in early September. However, the latest fourth quarter financial report has not significantly boosted Apple’s share price. < p > < p > Apple’s iPhone sales declined year on year in this quarter, and its profit performance was not significant, which directly led to the stock price falling after the close of trading on Thursday. In addition to its poor performance, Apple has recently been involved in the U.S. Department of justice’s anti-monopoly investigation with several major technology giants, which is tantamount to making apple worse. How should investors look at Apple’s financial report? According to this quarter’s financial report data, Apple’s total revenue in the fourth quarter of fiscal year 2020 was 64.6 billion US dollars, which was 8.2% higher than that of 59.7 billion US dollars in the previous quarter, and 1% higher than that of 64 billion US dollars in the same period of last year. < p > < p > Apple’s revenue performance in this quarter is not brilliant, with a year-on-year increase of only 1%, compared with the 11% growth rate in the third quarter, the drop in growth rate is indeed quite large. According to the US Stock Research Institute, this may also be one of the reasons for the decline in stock prices. In terms of revenue structure: < / P > < p > Apple’s fourth quarter financial report shows that iPhone sales revenue in this quarter was $26.4 billion, down 20% from $33.4 billion in the same period last year, and basically flat compared with $26.4 billion in the previous quarter. < / P > < p > the sales decline of iPhone 11 series from July to September, as well as the delayed release of iPhone 12 series, have a certain adverse impact on the sales growth of Apple’s iPhone. According to IDC data, iPhone shipments fell 10.6% year-on-year in the third quarter, ranking fourth, followed by Samsung, Huawei and Xiaomi. < p > < p > specifically, in the Chinese market, iPhone sales fell sharply again in September, with a year-on-year decrease of nearly 68-71%. “By early September, because this is the time we usually launch new iPhone products, consumer demand for iPhones will grow during this period,” Cook said at this quarterly earnings meeting. There were no new iPhones on sale for two weeks in September, which made this figure not perform well. ” According to cinno research, Huawei, vivo, oppo, Xiaomi and apple account for the top five sales. Among them, Huawei’s sales volume was 28.8 million units, a decrease of 29% compared with the same period last year, millet sales increased by 26% compared with the same period last year, and Apple’s shipment volume was 8.1 million, up 9% year-on-year. < p > < p > iPhone is the main revenue of Apple company, and the sales of iPhone account for 40.8% of total revenue in this quarter. From the iPhone revenue growth in recent quarters, it is not optimistic. According to the US Stock Research Institute, this is related to the lack of innovation of iPhone in recent years. Since the full screen era of iPhone x, the innovation of iPhone XS series and iphone11 series has been lacking, and no major breakthrough has been achieved in the products. However, the 5g version of iphone12 has been delayed, which has little effect on boosting iPhone sales in the third quarter. < / P > < p > in addition, the poor sales of iPhone are also related to the high penetration rate of global smart phones, and the market incremental space has been gradually shrinking. With the launch of Samsung Galaxy Z fold25g foldable smartphone and Huawei mate 40 series, the US Equity Research Institute believes that iPhone sales revenue in the first quarter of fiscal year 2021 will still face considerable challenges. < / P > < p > from the perspective of other hardware products, the demand for home work and online learning has increased greatly, bringing about changes in sales of other products such as iPad and MAC. < / P > < p > with the reopening of global stores, the sales growth of wearable devices will continue to accelerate. The growing product portfolio and its huge user base will bring sustained growth to Apple’s service business. In this quarter, Apple’s service revenue was $14.5 billion, up 16% from $12.5 billion in the same period of last year, and 10% higher than that of $13.1 billion in the previous quarter. < / P > < p > from the overall trend, the contribution of Apple’s service revenue to the total revenue is gradually increasing, and the service revenue accounts for 22.4% of the total revenue in this quarter. The growth rate of Apple’s service is lower than 10% in the last six quarters, which shows that the company’s service has not shown a good trend. < / P > < p > although Apple’s sales of hardware products still account for the majority of its revenue, Apple has realized the opportunity to develop its huge user base through sales services. Apple’s software and hardware ecological synergy gradually emerged, but also obtained a better ability to resist risk. At the financial report meeting, Luca masterley, financial officer, said: “the service business is indeed expanding. We have many different profit models, so the overall retail improvement is actually a mixture of different profit models.” < p > < p > Apple Music and Apple TV + are the main sources of Apple’s service revenue. Take Apple TV +, for example, bundled with iPhone devices, plus the privilege of free use for one year, the US Equity Research Institute believes that the potential of Apple TV + will explode within a few years. According to the report of Apple TV and Disney, this move is related to the expansion of Apple TV’s business. This will also lead to more intense fighting between Apple TV + and Netflix and Disney + on the content level. < / P > < p > at present, apple is cooperating with Hollywood film makers in content licensing. How Apple TV + can enhance the platform content in the future is worthy of attention. In this quarter, Apple’s net profit was $12.67 billion, down 7.3% from $13.68 billion in the same period last year, and 12.6% higher than that of $11.25 billion in the previous fiscal quarter. There are still doubts about Apple’s profitability in the market. Although the company has tens of billions of dollars of net profit every year, its operating profit margin is declining year by year, which is mainly due to the decline of gross profit rate of its products and the high gross profit margin of its service business. < / P > < p > the decrease of product gross profit rate may be related to the price reduction of iPhone. Previously, the price of iPhone 11 has decreased significantly compared with that of iPhone XS series, and the reduction of price has compressed its profit margin to a certain extent. In addition, from the perspective of cost, the total operating cost of apple in this quarter was $9.914 billion, up 14.1% year-on-year; among them, R & D expenses and marketing expenses increased by 21.1% and 7.8% respectively. The rise in costs may also have contributed to the decline in Apple’s profit this quarter.. < / P > < p > this year, in order to save costs, Apple has eliminated earphones and charging adapters from the sale of the new iPhone 12. Given the macroeconomic background of the weakening dollar, the company’s performance will still be worthy of attention. As of the US Stock Research Institute, Apple’s total market value is 190 million US dollars, only one step away from the total market value of 2 trillion. In this way, Apple will become the first technology company in the U.S. stock market to break through two trillion market capitalization. < p > < p > standing at the first place in the global market value, Apple will face the problem of where to go in the future. According to the US Stock Research Institute, the future incremental development space of Apple may be reflected in the following points: < / P > < p > first, the 5g version of the iPhone 12 series may become Apple’s biggest focus at the end of this year and 2021. According to statistics, the number of iPhone 12 bookings on the first day was as high as 2 million units, of which 35% – 45% of the demand came from China. Last year, iPhone 11 sold about 800000 units on its first day. It can be said that the sales of China market in the next few quarters will largely determine the performance of Apple’s stock price. When smart phones enter the 4G era, domestic mobile phones are still in their infancy. Apple has seized a large market share in the Chinese market by taking advantage of its products and technology. < / P > < p > however, China has taken the lead in 5g era. Many domestic flagship 5g mobile phones have been released in front of the iPhone 12, which undoubtedly increases consumers’ expectations for the iPhone 12 series. As a result, the sales of iPhone 12 Series in China in the next few quarters will become a key link to determine Apple’s potential in the next few quarters or even longer. < / P > < p > Second, Apple has always been positioned as a hardware company, and the capital market generally has a low valuation of hardware companies. With the change of Apple’s service orientation in recent years, the market has experienced a big rise in its valuation. In the future, with the continuous expansion of the proportion of service income, the US Stock Research Institute believes that Apple’s market value still has a large space for imagination. < / P > < p > Google also makes smart phones. The function orientation of Google’s smart phones is to expand the boundaries of its advertising, search and other software services. Apple is turning from hardware to software services. In the C-end market of icloud and other software services, Apple has done better. However, in the b-end software market, Apple’s software business is far inferior to its hardware business. There are Amazon AWS and Microsoft in cloud storage / computing, and Google in search. In the future, how to use hardware to open the software service market will be a key point affecting the future development of apple in the coming cloud computing era. < p > < p > the US Department of justice, which has been “staged” since July this year, conducted an antitrust investigation into Google, Amazon, Facebook and apple, saying that the four technology companies have monopolized their respective fields. “Apple has a monopoly in the mobile app store market, controlling access to more than a billion iPhones and iPads in the United States,” the US antitrust sub committee said in its investigation report. In the absence of competition, Apple’s monopoly on software distribution of IOS devices causes harm to competitors and competition, reduces the quality and innovation ability of application developers, increases the price and reduces the choice of consumers. ” < p > < p > the spin off is a situation that several major technology giants may face, while the US Stock Research Institute believes that the possibility of splitting apple is small. The reason is that Apple’s hardware is the core of its competition. If Apple’s hardware business is to be split, Apple’s position in the intelligent hardware market will be seriously affected and its competitiveness will be reduced, which is also what the U.S. government does not want to see. < / P > < p > although it is not likely to be split up in the future, from the perspective of the current development situation, the anti-monopoly investigation is still not a small blow to apple. It is reported that Google pays $8 billion to $12 billion a year to apple. This order is also the largest single payment made by Google to make Google browser the default setting of safari, which accounts for 21% of Apple’s profits. However, according to the antitrust investigation report on Google, Google has a strong presence in the general online search and search advertising market

Author: zmhuaxia