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Do not know where to invest? Buy Apple!

I am sure that a company like Apple needs no introduction. A strong brand with high consumer qualities of products and a huge loyal audience around the world allow the company to demonstrate consistently high financial indicators. But despite this, the company’s fiscal second quarter of 2019 was again not the most successful, the main culprit of which was the decrease in sales in China, which endures economic difficulties.

Total quarterly revenue decreased by 5.1% y / y to $ 58 billion, while revenues from the sale of iPhones fell by 17.3% to $ 31.1 billion (53.5% of total revenues). At the same time, revenues from various services — including the App store, Apple Music, AppleCare, Apple Pay, and others — rose 16.2% to a record $ 11.5 billion.

Geographically, Apple recorded a sharp decline in sales in Greater China (China, including Hong Kong, and Taiwan) by 21.5%. In addition, a moderate decrease was observed in Europe (-5.7%) and countries in the Asia-Pacific region, except for China and Japan (-8.7%).

Growth factors

Despite the continuing economic weakness in China and the proximity of the global market for smartphones and other mobile gadgets to the saturation point, most experts are inclined to positive forecasts for Apple shares.

One of the main growth factors in the medium term may be the segment of Apple services. The number of Apple devices used worldwide has grown to a record 1.4 billion, while the number of subscribers to the company’s paid services only jumped 30 million to 360 million in the last quarter, and is expected to reach 500 million by the end of next year. Apple has previously announced its intention to increase revenue in this segment to $ 50 billion in 2020, and current trends indicate that it is confidently moving toward this goal.

Apple is also actively expanding its presence in other promising sectors. In particular, the company directs significant funds to the development of technologies related to artificial intelligence, augmented / virtual reality, autonomous cars, which are becoming increasingly popular and provide interesting growth opportunities.

Technical analysis

In terms of technical analysis, Apple shares are traded on the daily chart as part of the medium-term uplink, above the 50-day moving average.

apple charts

Expected to continue to rise to the upper boundary of the channel, in the area of ​​$ 225 mark.

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