If you want to know how well a company is doing, you need to check their financial performance. It is the key to know the company’s success.
Most of the investors make investment decisions on the basis of the financial performance of the company. If the company is doing well and is the table, they will invest the money in their stocks.
Apple is one of the most popular tech companies, delivers the best performance each year.AAPL Stock is always in the hot stock list. Apple has reported good financial performance in the year 2020.
Net Income and Revenue:
The net income of the company in the year 2020 is $57.4 billion. Their total revenue is $274.5 billion. The total revenue shows its net sales. Despite the delayed launch of iPhone 12 and other Apple products, they still made good revenue. In the year 2020, Apple’s net income has increased by 3.9%. Apart from this, its revenue increased by 5.5%. All these indicators clearly show that AAPL Stock is stable and performing well in the market.
Product and Services Growth:
Apple has also seen an increase in business growth. Their products, as well as a service business, has increased in the year 2020. This company mostly sells products. The product revenue of Apple went up by 3.2%. Nearly 80% of the total revenue comes from product sales. Out of all the products, the iPhone make up 50% of the total sales. After the phone business, Apple is known for selling Mac. It makes up 10% of the revenue. Wearable and Home Accessories constitute 11% sales. Apart from products, Apple also provides services. The revenue from services has increased by 16.2%. It makes up 20% of the total sales.
Apple has come up with a new strategy; they are going to focus more on high margin services. They are giving more importance to the services as the profit margin is quite good. The will pay less attention to the hardware products with slow growth. The service business is making more revenue. They have started various services like Apple TV+, Apple Arcade, Apple Card and Apple News+. They are planning to offer these all services in a bundle offer called, Apple One.
In the year 2018, the total sales margin was 60.8%. This percentage went up to 63.7% in 2019. In the year 2020, it became 66%. The margin for products is decreasing while for services is increasing.
Apple is doing quite good financially. Both products, as well as a service business, is thriving. However, the services are beating the products when it comes to the margin. If you want to invest in this stock, you can check its income statement at https://www.webull.com/income-statement/nasdaq-aapl.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.