MSTAN
2022-11-30

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@Ultrahisham：Stock market's apple of the eye $Apple(AAPL)$ is very much a mainstay of value portfolios. I mean it occupies a big chunk of $Berkshire Hathaway(BRK.A)$ and Buffet is Mr Value personified so that is rather an understatement in itself. With a P/E of around 23, it is not too expensive although any drag on earnings will put pressure on that. And many believe that inflation will not affect Apple much due to its sticky consumers as well as mind share effect. However, the reliance of Apple on China in its supply chain has been made rather apparent especially lately and I am quite sure they recognised that and are trying to diversify into otherregions such as Vietnam. And with China stubbornly sticking to its Covid zero policies, it is creating quite a bit of instability around earnings. This is still short term though and they willprobably figure a way out. The more sticky question for Apple in my opinion is new growth avenues. There is only as much they can grow from the Apple mainstay products such as the iphones and the macs etc.They also earn a lot from the App store but that is under pressure also with some companies already voicing out and now even Musk has waded into that topic. They are trying to capture market share in the streaming and gaming sector but competition is fierce. They are probably testing the water in the electric vehicles sector but that is still not concrete as well as facing strong competitors. Artificial intelligenceis another area they might try but Nvidia has already cornered much of the territory there. Sothey have much to do if they are to seek for new growth opportunities. Let's not discount them though. They are Apple after all and this is the time to live up to their name. Thanks for reading!
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