Apple - tech giant (BUY - 350)

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. It also provides digital content stores and streaming services; AppleCare support services; and iCloud, a cloud service, which stores music, photos, contacts, calendars, mail, documents, and others.

In addition, the company offers various service, such as Apple Arcade, a game subscription service; Apple Card, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service, as well as licenses its intellectual property, and provides other related services.

The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It sells and delivers third-party applications for its products through the App Store, Mac App Store, and Watch App Store.

The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

Apple share price, revenues, EBITDA, EV/EBITDA, P/E, Correlation & Beta 
Apple's meteoric rise with consistently higher revenues, EBITDA are primarily attributed with the innovations of Steve Jobs. Currently the Iphone is the flagship of Apple, with iOS market share ranging up to 50% in key markets.

A breakdown of its marketshare-data by mobile vendor shows that it has a rough 24% share of the market, with Samsung coming in at 30% by the end of 2019.


A breakdown by mobile operating system the figures come in at approximately 25% for Apple, whilst the other portion of 75% is Android in terms of marketshare.

It is clear that there is a duopolistic stance, in regards to the operating systems used in the smartphone market, with the battle being between Android and iOS.

The duopoly is set to benefit Apple longterm, as there aren't many choices other than these two operating systems. Apple also has a brand-image of being more luxurious and more user-friendly iOS than Android. Android on the other hand offers more sophisticated and more in-depth technological capabilities via Android.

Apple's share is set to continue its rise higher due to its duopolistic position within the market.

We therefore give Apple a BUY with a target price of 350$ until Q2 of 2020.