Will the share price break up? Tell the story of Apple

Some companies' share price increases far outstrip product price increases, so the question is, will the stock price rise?

Just like buying food, stock price rises are related to supply, but behind supply relationships: some rises are driven by fundamentals; some are driven by events or by concepts; and some are related to technical analysis, market psychology...

Today's Futubull wants to take a look at the story behind the stock price rally from a fundamental perspective, as an example of the apple company that is familiar to you.

The share price has increased by more than 1600 times since listing!

At the time of its launch in 1980, Apple's market capitalization was about $18 billion. In 2018, it became the world's first company with a market capitalization of more than 1 trillion. In 2023, its market capitalization exceeded $3 trillion, more than 1600 times what it was in 1980, and a compound annualized growth rate of about 19%!

These numbers are staggering, even when viewed across the stock market as a whole.

There are many “fruit powders” around us, and everyone has a unique love for iPhones, iPads, MacBooks, etc., and we look forward to each new generation of products. And it is well known that Jobs, one of Apple's founders, gives an impression of extreme focus, extreme personality, and more.

Can more of these questions explain the reasons for the rise in apple share prices? Never after this amazing promotion, Futubull will talk to you about a key story.

After Jobs' departure, two CEOs fell out of business

In the years before the launch, Apple was doing well. However, roughly between 1993 and 1997, Apple's share price went down overall, as the Nasdaq Composite Index (Nasdaq Composite Index) rose overall. What happened before and after that?

In 1985, Jobs and then-CEO Scully had failed and left the board. Scully led Apple into some new areas, but without success, he was fired in 1993. Subsequent Michael Spindler, following Scully's strategy, also stepped down in 1996.

While leaving Apple, Jobs turned his sights to animation, founded NeXT, acquired Lucca Film Corporation (later renamed Pixar), and launched the eponymous animated film “Battleship” in 1995.

At the end of 1996, when Apple acquired NeXT, Jobs returned to Apple in such a way that Apple's business and stock price gradually resumed growth. Under Jobs' leadership, Apple has stunned the world with multiple products.

The iPod came out in 2001, making music players portable and changing the way people listen to music. The iPhone came out in 2007 and soon received a batch of “fruit powder”. In 2010, the iPad appeared, and then became a very popular tablet computer. Also released in 2010 was the iPhone4, a touch-enabled phone with an AppStore built in, that truly made Apple an industry legend.

Did Apple make more money after Jobs died?

During 2011-2016, Apple's share price rose more significantly than ever before. What is the story in this?

In 2011, Jobs died, and Cook took over. Cook seems more like an understated good old man than his disruptive innovative powers, elegant aesthetic ideas, and far-sighted Jobs. So there was some concern from all parts of society about Cook's appointment.

From a product perspective, starting with the iPhone 5s, the answers that Cook handed out really can't keep up with the amazement that Apple originally gave.

But Cook, who had previously been in charge of running Apple, dramatically reduced Apple's inventory cycle from 30 days to 6 days in the seven months before joining Apple, and that number changed to 2 days a year later. So Apple has another great track record under the leadership of Cook, who specializes in running.

From 2011 to 2016, Apple's revenue and net profit nearly doubled. TO THIS DAY, APPLE'S SUPPLY CHAIN MANAGEMENT AND HIGH TURNOVER RATES REMAIN INDUSTRY-LEADING.

Stock prices rise storm-like under the power of ecology

If 2011-2016 was a period of rapid growth in Apple's stock price, Apple's share price has been a whirlwind growth since 2018.

What did Apple do right again? In fact, Apple was building its ecosystem many years ago.

Including turning iOS into a closed “walled garden” with a strong say in software services through the Apple App Store. Revenue from its services business currently accounts for about 20% of Apple's revenue.

This includes building a whole portfolio of products from iPhone to Mac, to iPad, to wearables, and to future AR/VR and AI. Including it, by obtaining information such as the market needs of suppliers, thereby adjusting the investment related to technological innovation, and establishing good cooperation with suppliers.

It also includes the launch of the Apple Experience Store program, which allows users to feel the appeal of products and technologies directly in the experience store, and enables Apple to better understand user needs and continuously optimize products.

THE ECOLOGY THAT BEGAN TEN YEARS AFTER THE CREATION OF FLOWERS, FINALLY SHOWED GREAT STRENGTH IN THE EXPANSION OF THE STOCK MARKET, AND THE SHARE PRICE BOOM IN 2018 IS NOT SURPRISING. Futubull says that the basic stability of apples is the same as the yield level of the fruit, and it may not be possible to open this great ecological circle behind the back.

Futubull last sentence

Here, in the context of the rise in apple prices and the connection between the key points and the story, Futubull sees a few key words: people, products, ecology.

Apple today does not depart from Jobs' artistic and creative management philosophy, nor from Cook's philosophy of excellence and rational operation. And behind this, the product gradually grows in the minds of users, and the ecology gradually shows its power.

Okay, speaking of this today, wondering if Apple's story helped you understand what caused the stock price to rise, or did you understand a little more about Apple? See you tomorrow!