Besides being the biggest company traded on any North American exchange, tech super-giant Apple Inc. (NASDAQ: AAPL) continues to surge, as the company engages in share repurchases amid strong investor demand for the company’s shares in this persistent bull market.
With Apple’s management team continuing to stand firm in its stance that repurchasing shares will continue to deliver shareholder value (as well as pay out a modest, but meaningful, dividend), investors assessing whether or not to buy into the soon-to-be trillion-dollar company certainly have a lot to consider, given the fact that no U.S. company has topped the $1-trillion mark to date.
One of the concerns investors have posed is the idea that an iPhone “super cycle” may not materialize, and at some point, Apple may be constrained in terms of how much it will be able to increase prices over time. While a super cycle may indeed not be in the works, Apple’s ability to show strength in pricing, offering consumers financing options and looking into growing its ancillary business lines (which include products and services related to the iPhone including financing), I think many investors are continuing to miss out on the growth potential of the company’s earnings over time.
The reality is that Apple has built up one of the world’s premier product ecosystems, creating switching costs for customers that would like to take their business elsewhere. For long-term investors betting on which companies will continue to dominate their markets, in my mind, Apple is a no-brainer.
Invest wisely, my friends.
Tech Insider
