I vote for $Apple(AAPL)$ because its shares have a long track record of rewarding investors. In fact, the stock has outperformed the S&P 500 by a wide margin over the last 10, five, three, and one year periods. A close look at the stock and, more importantly, the underlying business suggests there's likely more meaningful growth to come for Apple shareholders.

Apple boasts a powerful "engine" of loyal users. The iPhone accounts for over half of the company's annual revenue and is obviously imperative to the business.

But the real driver for Apple's business is the user behind the iPhone. The company's efforts to consistently deliver an integrated ecosystem of hardware, software, and services that delight customers have helped the company not just sell products, but also build a loyal base of customers across many actively used devices.

Pairing this installed base of active devices with the company's growing services business (sales from both native and third-party apps, cloud storage, AppleCare, and similar offerings), Apple boasts what management has been increasingly referring to as its "engine." An active base of loyal subscribers, which reached a record high in the company's most recently reported quarter, represents a monetization opportunity for the company as Apple works to increase customer engagement over time.

This engine gives Apple a reliable stream of revenue in its services business that will likely grow for the foreseeable future.

@CaptainTiger 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment47

  • Top
  • Latest
  • DonnaMay
    ·2022-12-13
    I can see that you have a good understanding of the AAPL business model.
    Reply
    Report
  • HilaryWilde
    ·2022-12-13
    But I worry that AAPL doesn't have much room to grow.
    Reply
    Report
  • Maria_yy
    ·2022-12-13
    Customer engagement is a point of pride for AAPL
    Reply
    Report
  • ElvisMarner
    ·2022-12-13
    The iPhone is very important to AAPL.
    Reply
    Report
  • PandoraHaggai
    ·2022-12-13
    AAPL's long-term performance is indeed very good.
    Reply
    Report
  • d72dka333
    ·2022-12-12
    bring back NuBus
    Reply
    Report
  • Cklew
    ·2022-12-10
    Reply
    Report
  • dlkseng
    ·2022-12-12
    nice
    Reply
    Report
  • psk
    ·2022-12-12
    ok
    Reply
    Report
  • CL_Wong
    ·2022-12-11
    Ok
    Reply
    Report
  • Derrick_1234
    ·2022-12-11
    Ok
    Reply
    Report
  • Thonyaunn
    ·2022-12-10
    Ok
    Reply
    Report
  • Zirong921
    ·2022-12-10
    Power of Apple
    Reply
    Report
  • Stephanie58
    ·2022-12-10
    ok
    Reply
    Report
  • YYMA
    ·2022-12-10
    yes
    Reply
    Report
  • HJlee
    ·2022-12-10
    ok
    Reply
    Report
  • Stephanie58
    ·2022-12-10
    ok
    Reply
    Report
  • Baoxiaolong
    ·2022-12-10
    ok
    Reply
    Report
  • gnohnaix
    ·2022-12-10
    k
    Reply
    Report
  • LibeQ
    ·2022-12-10
    Go
    Reply
    Report