Thursday , February 25 2021

Why financial markets will examine Apple's results


The American giant posted the results yesterday: he must convince himself that he has a strategy to get out of the "all-iPhone".

Apple, who has already warned that its final sales of the year would be disappointing, will try to convince this Tuesday, presenting its results, which continues to have the resource, despite investors' concerns and, at the same time, You have discovered a security vulnerability in your FaceTime application (read more).

Earlier this month, Apple's brand surprised everyone, and warned that their iPhone sales and sales had been worse than expected in the last three In the months of 2018, the first quarter of the year was changed. The stock market sanction was immediate, with a 10% decline in the stock. Apple, which was in August the first private company to cross the symbolic threshold of $ 1 trillion in market capitalization, was worth about $ 740 billion on Monday, behind Amazon and Microsoft.


According to Apple, iPhone's disappointing iPhone sales leader is looking for the slowdown in the Chinese economy and other emerging countries. And for his CEO, Tim Cook, the commercial war led by US President Donald Trump prevents his finances. The billing published on Tuesday should be, therefore, lower than the forecasts presented by the group in the fall, and that investors had already found shy, or $ 84 billion. Especially, the failure of the end of 2018 raises a crucial question for investors: the company only knows a hole in the air of passengers or is it a bigger problem?

Apple will have to convince that it has a strategy to get out of the "all-iPhone", at a time when the smartphone market is completely saturated. Until now, the US group has managed to offset the slowdown in sales leaving increasingly expensive models, which exceed, for some, the symbolic bar of $ 1,000. A payment tactic as sales continued to grow much faster than sales, but could begin to show their limits in a slower global economy. Especially because competition is fierce by manufacturers that offer similar performance, but cheaper.

In addition to the world leader, South Korean Samsung, Apple faces the fierce ambition of Chinese Huawei, which nibbles global market shares. Undoubtedly, I signaled that Apple felt the twist of the wind, that it had presented in September the iPhone Xr, cheaper than the Xs and Xs Max, and that it was sold better than the other two in the United States.


Apple has also begun to accelerate its diversification in services: dematerialized data hosting (cloud), music, movies and series (Apple Music and iTunes) and digital payment (Apple Pay). Between July and September, these activities represented $ 10 billion, with a total turnover of about $ 63 billion.

"It's not the end of Apple, but only the passage of the smartphone to a boring maturity, waiting for the sequel", summarizes Benedict Evans, of Andreessen Horowitz's specialized investment company. (AFP)

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