Apple: Brand Power As The Only Growth Driver
Summary
- Without delving into the details, Apple's financial performance may appear solid, with consistent improvements in profitability.
- However, the company's brand power remains its sole growth driver, as it secures pricing power in its Services segment.
- Meanwhile, in FY 2024 so far, the Products segment has shown a decline across all categories, and the company's latest innovative product represents a significant strategic misstep.
- Despite Apple's high profitability, the stock is overvalued with a fair value around $2.3 trillion, significantly lower than its current market cap.
PhillDanze
Investment thesis
My previous bearish thesis about Apple's stock (NASDAQ:AAPL) did not age well as it returned around 15% to investors since early June. I still believe that innovation in the company stagnates, and the recent iPhone 16 event
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