Is it worth buying Apple stock

Buy Apple shares - is it worth getting started?

Apple is one of the most popular foreign stocks in Austria. For years the company can look back on increasing sales, groundbreaking innovations and strong share price increases refer. For several months, however, the security has been under great pressure: price losses of over 25 percent had to be accepted. Is it therefore worth it right now, To buy Apple shares? Or does the security go further downhill?

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The previous price development of the Apple share

The real success story of Apple only began in the early 2000s. With the development of the first iPhones the sales figures shot up dramatically. In the years that followed, Apple continued to impress with further innovations, such as the iPad and new Macs. Thanks to the hype about the US company and the clever marketing, Apple was able to join the most valuable brand in the world develop. This was also noticeable in the share prices:

In 2005 the price of Apple shares was still around 5 euros. Who back then Buy Apple Stock wanted, was laughed at wearily by many analysts. The company's products are too expensive and the company's strategic direction is too stuck. Until 2012, the price of the Apple share rose despite all assessments to just over 100 euros at. A full 2,000 percent return in just seven years - an absolute record that not even Google can keep up with. After a brief slump in 2013 to around 60 euros, Apple shares reached mid-2015 their maximum value of 132.54 euros. After that, however, things went downhill again: As of May 2nd, 2016 the security is EUR 93.64.

The reasons for the price losses

Apple is far from having money worries. More than $ 200 billion in provisions the group should be allowed to call its own. Billions of dollars in profit are added each quarter. The price drops on the stock market are mainly due to future forecasts, many investors no longer believe in medium-term growth of the group:

  • Sales for the new iPhone fell for the first time ever.
  • Major investor Carl Icahn sold his Apple shares. Although he praised the company, he referred to the growth market of China. Some online services from Apple have already been blocked for reasons of censorship. If there were further restrictions, Apple products would no longer be attractive in China.
  • Apple Watch and the new Apple TV have so far not been able to convince as new sources of revenue.
  • The often cheaper Android devices make Apple strong competition.

What are the advantages of future price increases?

With all the negative aspects listed, it should be noted that Apple is still one of the largest corporations in the world. Just a single innovation could ensure that Apple's sales figures increase sharply again. The group itself sees the falling sales of the iPhone as less dramatic. Especially in India and China a middle class would emerge who could afford the expensive smartphone in the future. If around 50 million people in China had belonged to the middle class in 2020, it would have been around half a billion in 2020.

Also in Russia or Brazil CEO Tim Cook sees further potential: “We are not withdrawing there.” The temporary slump in sales is mainly due to the low raw material prices on the world market, which are depriving the people of Russia and Brazil of purchasing power. After successfully overcoming the economic crisis, the sales of the iPhone would then increase again.

New growth could also come from the Apple Auto store pull. The rumors about the Group's plans in this sector are still rather vague. It will be a little more specific in the field of virtual reality technology (VR): “I don't think VR plays in a niche. It's really cool and has some interesting implications, ”Cook said on a conference call. In order to be able to use the potential of VR, Apple recently hired the expert Doug Bowman and bought a number of companies from the sector.

This is what analysts say about Apple shares

Who is currently Buy Apple Stock should take a closer look at analyst opinions on the security. From 36 major analysts, including Goldman Sachs and Barclays, advise 31 buying shares in Apple. The average target price is around 128 euros. That is below the all-time high, but more than 35 percent above the current value. That alone would make for a high return.

Then there are the quite substantial dividends, which Apple has been paying out regularly since 2013. Between $ 0.40 and $ 1.98 per share was paid out to the company's shareholders. The The dividend level rose continuously a further increase is also expected for 2017. Analysts currently consider Apple's profits to decline in the future as unlikely.

In order to achieve the highest possible return on the security, investors should above all reduce purchase costs. For example, custody account fees ensure that the dividend is eaten up quickly. Order commissions that are too high also lead to sustained lower profits. A broker comparison is therefore essential before buying Apple stocks.

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Conclusion: moderate risk, good buying prices

The price of the Apple share is currently comparatively low at just under 94 euros. The reason for this is the downward trend that began in mid-2015. especially the declining sales of the iPhone have enticed investors like major investor Carl Icahn to sell. They are currently speaking in favor of buying the shares Dividend payments, the constant willingness to innovate of the company and the Growth markets in Asia. Many analysts also see it this way: almost all of the major banks and agencies currently recommend the Buy Apple stock.

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