To The Moon

A news that $Apple(AAPL)$ announces high-yield saving accounts for card users, will change a lot.

Recent, Apple has rolled out an Apple Card high-yield savings account from $Goldman Sachs(GS)$. The account, which has no fees, no minimum deposits and no minimum balance requirements, offers an annual percentage yield of 4.15%, compared with the average U.S. savings deposit rate of just 0.37%.

Ten years ago, $Alibaba(BABA)$ had launched a “money pocket” saving account called “Yu’EBao”, through its financial affiliate Ant Group, who offered an annual percentage yield as high as 6%+, compared to national banks’ average of 2%.

Then Alibaba comfirmed its “SUPER APP” position in China Internet industry.

My Option Takeaways towards AAPL.

• Recession expectation could hurt it, but Apple’s service could have done more. If Apple could take 30% (as the usually “apple tax” do), the saving account might benefit a lot. Also, US citizens are not used to save money, it could just be the start, more countries would follow.

• Recent price is not low, and momentum is reaching the end, and a 14% gain deserves a lot more scrutiny than a higher gain on most other weighted stocks.

• Apple’s trading above it’s 5 year average PE of 24, and reaching trailing PE of 28. Since the FY23 earnings slated to be down 2%, the mean reversion requires it’s backward move further.

• India market is Apple’s next target for profit miracle. Apple is making a concerted effort to push into the Indian market, which could boost annual sales in the country to $20B by 2025. Now it has less than 10% of the Indian smartphone market, but aims to unseat traditional competitors with price points across the board and its upcoming iPhone 15 launch.

Another interesting fact, Goerteck, $Goertek Inc.(002241)$ who once was the largest supplier of Apple (airpods etc.), has lost the biggest custumer last quarter. Its latest quarterly earnings showed a huge plunge in profit and profit margin too.

It makes the investor rethinking their strategy: Whethter it is better to invest Apple itself, rather than any uncertain supplier?

Maybe investing apple is just the “no choice” of a choice?