Why Apple stock is a ‘Buy’ in a turbulent market

Apple’s stock price fell nearly 27% throughout last year, but still managed to do better than other FAANG components like Alphabet and Amazon, which saw their stock prices stumble 39% and 49%, respectively, in 2022. Apple’s stock managed a partial recovery in 2023 and is up 19% year to date. However, it still has more work to do. That suggests a buying opportunity for Apple investors hoping to benefit from the effort.

Dani Cook for The Motley Fool:

Apple has plans to decrease its dependency on other tech companies for iPhone components and move to increase in-house production of various components. The tech giant will reportedly begin producing a custom Wi-Fi/Bluetooth chip, ending partnerships with Broadcom and Qualcomm. Additionally, reports say Apple will start using custom displays as early as 2024, moving away from Samsung- and LG-produced screens. Utilizing more in-house components in the iPhones will likely boost profit margins as it ends costly partnerships with outside companies…
The company announced in June 2020 that it would stop using Intel processors in its Macs and move to homegrown chips called Apple Silicon. Since the third quarter of 2020, Apple’s Mac revenue has increased 62%, going from $7.1 billion then to $11.5 billion in Q4 2022.
Moreover, the company is home to a swiftly growing services business allowing it to lean less on its product revenue. In 2022, services such as Apple TV+, Music, and iCloud earned $78.1 billion in revenue, growing 14% year over year, double the iPhone’s growth. In addition, the segment’s profit margin hit 71.3%, while the same metric for products reached 36.3%.
With a sell-off leading its stock to fall 15% from its high, now is an excellent time to consider investing in Apple.

MacDailyNews Take: Apple stock remains undervalued.
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