Apple Long Term?

Nothing in today’s tech industry is certain. Companies come and go all the time. The industry is dominated by the companies like Motorola, Nokia, Samsung, and of course Apple. It’s extremely hard for smaller companies to throw their hat in the ring especially when a company like Apple consistently stomps out competition.

In the mobile phone industry a few small Chinese companies have had successes in making high quality, yet affordable smart phones. This has hurt some of Apple’s market share. Like always, Apple came back with a plan to gain back some of the market share they were losing to companies that were providing affordable options. They released the IPhone SE which had all the great features of the new IPhone 6s at a much lower retail price. Apple was able to use a lot of components from their previous phone, the 5s, to reduce cost while still making a high quality phone. The phone was a great success and this really helped their sales. This just proves that a company like Apple will always smite the little guy. They are always adapting and on top of their competition.

Apple doesn’t just rely on their devices to make them money. They have multiple services such as itunes, apple care, app store, and the icloud that brings in a decent amount of their revenue.

So they can control a market, but are they worth investing it? Well maybe not to make a money in the short run but definitely in the long run. Market Watch had a great graph illustrating the revenue they had earned in the last ten years just from their services. In 2016 they have earned over 24 billion dollars in revenue. A staggering amount considering in 2007 they only earned 4 billion. The industry is growing, no one can deny that. Apple constantly is finding new ways to generate more revenue, and without fail every year they increase that number from last year. According to Cultofmac Apple is expected to release there Q2 report early next week, so consider that when making your decision.

Thats all I have for this week. I hope this blog was entreating and informative for you. As always, if you have any questions or comments feel free to leave a comment or contact me directly. Until next time!

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Should You Invest In Tech Companies?

In the last decade tech has been a large part of the US economy. There are high expectation for tech companies in the coming months with President Trumps plan to cut taxes and regulations on these industries. So, should you feed into the hype?

Tech can be a very unstable industry to invest in. Smaller tech companies like Nvidia are very volatile, and unpredictable. Last month they fluctuated from $98 to $109, and back down to $103. Even big companies like Apple are not a 100% safe bet. May 13th of last year apple hit it’s lowest price since October of 2014. However, since then they have grown at a stable yet impressive rate.

No one can deny that americas use of tech will continue to grow. In my lifetime I have seen the cellular phone develop from a large bulky device with a big antenna to a sleek, innovative machine. In just 21 years. Time will only tell what kind of amazing devices we have at our disposal in another 20 years.

To come back full circle. Should you let President Trumps proposal on changing the taxes and regulations on the tech industry influence your investing strategies? My advice would be to stay away from small, and risky companies strictly because they are all around hard to predicts. Instead, invest in large name tech companies that are showing strong signs of innovation such as Apple and IBM. I would strictly invest in companies that are American based, due to the fact that President Trump’s motto is “America First.” Another thing to think about is the fact that a lot of these tech companies heavily rely on foreign labor and foreign parts. So that may be a big factor.

That’s all for this week. I hope this weeks blog was helpful. As always if you have any questions please do not hesitate to leave a comment or ask me directly! Till next time!