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Apple

Apple is not only one of the best-known brands, but also the largest public company in the world with a current market capitalisation of almost 2.6 trillion euros.


Image

Even lighter, even flatter, even smarter,....

Apple claims to be a leader with its products and to deliver high quality.

In doing so, they focus on innovation and a high-quality image.

This is supported by a strong focus on appealing design and extensive marketing.




Among other things, Apple products are associated with lifestyle.

Especially in trendy cafés, a customer with his Mac next to the coffee cup is rarely missing.

Professional groups from the creative sector such as bloggers, musicians or designers, for example, often use Apple products.



From one to the other...

Connectivity and compatibility between Apple products is very high.

With Air Drop, for example, the devices can be connected in almost no time at all. For example, the user can copy something on the Mac Book and then immediately paste it again on the I-Phone.

The I-Cloud also makes it possible to access all files from different devices and prevents them from being lost.

from different devices and prevents data

data from being lost.


High prices

Apple's brand strategy leaves out the lower price segment almost completely.

Many smartphones from other providers, for example, can be had for 200-500 euros.

I-Phones are not usually found in this price range. A luxury image is cultivated through the choice of material, advertising and the prices.

Apple is also relatively quick to remove older models from its product range.

The focus on the high-priced segment can be seen critically, as the company thus supposedly does not address a larger, rather less affluent customer group.

It is therefore all the more astonishing that Apple products are nevertheless mass-produced and are bought by people from almost all income brackets.


The cult

This wide range of buyers may be explained by the fact that Apple products are seen as a status symbol in many countries and cultures.

So what does an Apple user supposedly signal to his social environment by owning an Apple product?

  • Affluence: It is common knowledge that products are comparatively expensive.

  • Technical affinity: Apple products are usually state-of-the-art. Innovation is an essential part of the image.

  • Mobility: An Apple user in a café shows that he can work from anywhere. The batteries last a long time, the displays are bright and you also look reasonably good with them thanks to the modern design of the products. Whether this is still the case, however, when you're swearing and desperately trying to get the knocked-over coffee out of the keyboard again is another question... 😁


Emotions

According to a study (German source linked), in contrast to the Samsung brand, for example, Apple activates a region in the brain that is normally responsible for recognising emotions. Put simply, looking at an Apple product triggers a similar reaction in some people as when they meet a human being.

This appeal to such emotions could explain why there is such a huge cult around the products.


Apple fans

There are extremely convinced Apple fans. For example, they spend the night in front of the Apple store before the release of a new I-phone and see the use of the purchased products more as a hobby or even as a way of life. An anthropologist from the University of British Columbia even went so far as to say that the Apple cult could be seen as a kind of religion.


Apple opponents

On the other hand, there are not only positive reactions towards Apple.

Some people even develop a strong dislike for this brand.

In my observation, this is often the case with people who are very technically minded.

One of the things that bothers them is that the products can hardly be modified or repaired for a short time.

They say they are much too expensive for that and are not much better than the much cheaper competition.

This friction, however, may strengthen the brand even more. Those who like Apple like to talk about it anyway. If the "opponents" also talk about it, the brand can spread even more.


Future

AR plays an important role in the development of the next few years. For example, you can already "place" products from the furniture store in your home through the camera function and try out how it might look.

An exciting development for me is the potential production of powerful AR glasses ("Apple Glasses") for everyday use.

Since Apple has allegedly been researching in this area for years and has the necessary financial resources and know-how, it seems very likely to me that Apple will also establish itself as a leader in this new market.

establish itself as a leader in this new market.


Another potential product that could play a major role in the future is the autonomous driving car named "Apple Car".

There are many rumours about this, but the exact implementation is still unclear. It is also questionable whether Apple could prevail in this market against other providers such as Tesla, for example. However, Apple's financial strength and innovative power should not be underestimated here either.


The share

Apple's share price has quadrupled in the last five years, rising by about 50% in the last 12 months alone. The company's profits have doubled since 2017 to almost 100 billion euros.

The trend is therefore clearly positive. The problems of the near past, such as the Ukraine war or the inflation and interest rate worries, have not been able to visibly inhibit this development so far.

As with almost all shares in the tech sector, the P/E ratio is not particularly low at around 25. One could therefore interpret this to mean that a very positive development of the company is already priced into the share price.

When investing in Apple, one should therefore be convinced that the development of the brand and the company will continue to be extremely good in the coming years.


Conclusion

Apple's extremely positive development is supported by the strong position of the brand together with the very convinced customers.

Due to this position, the risk of a long-term negative development of the share price seems low to me.

I consider the chance of a further significant positive performance and a good positioning of the company in important future markets to be much higher.




Note: Despite the very positive rating, this article is not intended to be an advertisement for Apple or investment advice.

It merely reflects my assessment of the brand and share.

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