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Category: Apple Inc (APPL)
Date: 21 June 2020 Stock price of Apple Inc: $349.72 We take a look at a study released by Apple Inc that showed that the Apple App store facilitated over half a trillion dollars in commerce during 2019. That is a whopping amount of money.
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Apple is one of the worlds biggest smart phone and related accessories makers with the group manufacturing the iPhone, iPad, Macbook, Apple Watch and other related products and services "
More About Apple Inc (APPL)
Apple is one of the worlds biggest smart phone and related accessories makers with the group manufacturing the iPhone, iPad, Macbook (laptops for those that don't know), Apple Watch and other related products and services. The group is starting to focus more and more on their services offering such as cloud services for their device users and services such as iTunes.
Apple sales by product type and category for the 2nd quarter of 2020:
So expressing the size of Apple (APPL) various markets based on its sales in 2019 it comes to the following:
- iPhone $28.962 billon (down -6.7% from $31.051billion for the same quarter of the previous year)
- Mac: $5.351 billion (down -2.9% from $5.513 billion for the same quarter of the previous year)
- iPad: $4.368 billion (down -10.3% from $4.872 billion for the same quarter of the previous year)
- Wearables, Home and Accessories: $6.284 billion (up 22.5% from $5.129 billion for the same quarter of the previous year)
- Services: $13.348 billion (up 16.6% from $11.450 billion for the same quarter of the previous year)
So expressing the size of Apple (APPL) various markets based on its sales in 2019 it comes to the following:
- Americas 44.9%
- Europe 23.17%
- Greater China 16.78%
- Japan: 8.26%
- Rest of Asia Pacific 6.84%
Apple App store facilitated over half a trillion dollars in sales during 2019
Cupertino, California — Apple today announced the App Store ecosystem supported $519 billion in billings and sales globally in 2019 alone. The new study, conducted by independent economists at Analysis Group, found that the highest value categories were mobile commerce (m-commerce) apps, digital goods and services apps, and in-app advertising. The results encapsulate the full sweep of the dynamic, competitive, and flourishing app economy, which has unleashed a torrent of innovation across 175 countries and revolutionized the way the world learns, works, and connects.
The study reveals that the direct payments made to developers from Apple are only a fraction of the vast total when sales from other sources, such as physical goods and services, are calculated. Because Apple only receives a commission from the billings associated with digital goods and services, more than 85 percent of the $519 billion total accrues solely to third-party developers and businesses of all sizes.
“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better,” said Tim Cook, Apple’s CEO. “In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world. We’re committed to doing even more to support and nurture the global App Store community — from one-developer shops in nearly every country to businesses that employ thousands of workers — as it continues to foster innovation, create jobs, and propel economic growth for the future.”
The study reveals that the direct payments made to developers from Apple are only a fraction of the vast total when sales from other sources, such as physical goods and services, are calculated. Because Apple only receives a commission from the billings associated with digital goods and services, more than 85 percent of the $519 billion total accrues solely to third-party developers and businesses of all sizes.
“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better,” said Tim Cook, Apple’s CEO. “In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world. We’re committed to doing even more to support and nurture the global App Store community — from one-developer shops in nearly every country to businesses that employ thousands of workers — as it continues to foster innovation, create jobs, and propel economic growth for the future.”
Of the $519 billion the App Store ecosystem supported in 2019, the study found that sales from physical goods and services accounted for the largest share, at $413 billion. Within that category, m-commerce apps generated the vast majority of sales, and of those, retail was the largest, at $268 billion. Retail apps include those that digitally represent brick-and-mortar stores such as Target and Best Buy, as well as virtual marketplaces that sell physical goods, such as Etsy, but do not include grocery delivery, which is its own category.
Other types of m-commerce apps were among the largest sources of sales from physical goods and services. Travel apps, including Expedia and United, accounted for $57 billion. Ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales, and food delivery apps, including DoorDash and Grubhub, made up $31 billion.
Billings and sales from digital goods and services comprised $61 billion, and this category included apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others. Games, the type of app most downloaded in 2019, was the largest generator of billings and sales within this category. Notable games of 2019 included “Mario Kart Tour,” which was the most downloaded game of 2019, and “Sky: Children of the Light” from indie developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.
In-app advertising sales accounted for $45 billion, and of that, 44 percent was derived from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.
he study looked at 2019 data to capture an accurate snapshot of the full App Store ecosystem, taking into account all sources of commerce. As a result of social distancing protocols associated with COVID-19, individuals have changed the way they live their lives and are spending more time on their mobile devices. Social apps are helping friends and families stay connected, and education and business collaboration apps are helping students and employees adjust to remote working environments. Food and grocery delivery apps have benefited from increased consumer demand at the same time as apps related to businesses that have faced restrictions, or those that require in-person interactions, have seen a sharp drop-off. Many brick-and-mortar businesses have turned to mobile commerce, including some that may otherwise have been forced to close without this alternative digital platform.
The App Store, which launched in 2008, is the world’s safest and most vibrant app marketplace, currently home to almost 2 million apps and visited by half a billion people each week across 175 countries. It helps creators, dreamers, and learners of all ages and backgrounds connect with the tools and information they need to build a brighter future and a better world.
Other types of m-commerce apps were among the largest sources of sales from physical goods and services. Travel apps, including Expedia and United, accounted for $57 billion. Ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales, and food delivery apps, including DoorDash and Grubhub, made up $31 billion.
Billings and sales from digital goods and services comprised $61 billion, and this category included apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others. Games, the type of app most downloaded in 2019, was the largest generator of billings and sales within this category. Notable games of 2019 included “Mario Kart Tour,” which was the most downloaded game of 2019, and “Sky: Children of the Light” from indie developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.
In-app advertising sales accounted for $45 billion, and of that, 44 percent was derived from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.
he study looked at 2019 data to capture an accurate snapshot of the full App Store ecosystem, taking into account all sources of commerce. As a result of social distancing protocols associated with COVID-19, individuals have changed the way they live their lives and are spending more time on their mobile devices. Social apps are helping friends and families stay connected, and education and business collaboration apps are helping students and employees adjust to remote working environments. Food and grocery delivery apps have benefited from increased consumer demand at the same time as apps related to businesses that have faced restrictions, or those that require in-person interactions, have seen a sharp drop-off. Many brick-and-mortar businesses have turned to mobile commerce, including some that may otherwise have been forced to close without this alternative digital platform.
The App Store, which launched in 2008, is the world’s safest and most vibrant app marketplace, currently home to almost 2 million apps and visited by half a billion people each week across 175 countries. It helps creators, dreamers, and learners of all ages and backgrounds connect with the tools and information they need to build a brighter future and a better world.
Apple Inc. (APPL) stock price history
The image below shows the stock price history of Apple Inc (APPL) over the last 3 years. And it's been a very good time for Apple (APPL) stockholders over the last 3 years. Over the last 3 years the stock of Apple (APPL) Inc. increased by 142.71%. And that is a return no investor will say no to.
Our latest stock valuation of Apple Inc. (1 May 2020)
So what do we value Apple's stock at after the release of their 2nd quarter 2020 earnings report? Following Apple's 2nd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $240.50 a stock (down from our 1st quarter 2020 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $240.50. Therefore we believe a good entry point into Apple stock is at $216.50 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against most market commentators and rate Apple as a sell
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $240.50. Therefore we believe a good entry point into Apple stock is at $216.50 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against most market commentators and rate Apple as a sell