Apple To Work Towards Attracting More 'Switchers' From Rival Companies

The smartphone making company is now looking to attract more and more Android users to increase its user base.

Apple Inc has been enjoying a good position on the stock index since the higher than expected quarterly result that were recently announced by the firm in which it discussed how it is planning to give back cash dividends valued up to $200 billion to the shareholders. Since that announcement, the company has been going up on the stock by almost touching the all-time high value of the shares.

One thing that has been taken into consideration by the analysts is that the iPhone 6 Plus makers are carrying around the market value of around $735 billion which has made them into the biggest company in the world. Furthermore, it has helped them in being one of the most important parts of the S&P 500 due to the significant trade activities of the firm.

There are some factors that analysts believe are going to help Apple In becoming even more popular than it already is and by stealing users of Android that it has been doing for such a long time. If the most recent earnings call is taken into consideration, it will be seen that the CEO of the smartphone making company was seen to refer to its customers who were ‘switchers’ from the Android system and were now using the iOS system that his company provides.

Analysts also believe that Apple (AAPL) stock has been relying on its old and loyal customers to use upgraded and pricey versions of the smartphone that it creates and manufactures but to increase its user base and spread it out to more Android users has become a challenge for the firm. Therefore, analysts are of the opinion that by targeting Android users, the company can work its way into growing its user base. Tim Cook, the CEO of the Mac producing company, was also seen discussing how he is expecting more and more people to be switching to iPhone 6 from their Androids as compared to the previous numbers who switched to other models of the iPhones.

If a recent report released by Kantar Worldpanel is taken into consideration, it will be seen that the around one-third of the total user base of the iPhones in the European countries was previously using Androids and were considered as recent switchers. One of the reasons why more and more Android users were seen using the phones made by Apple is of the large screen that is now being provided in the latest iPhone 6 and iPhone 6 Plus that has attracted a lot of attention from users who wish to carry phones with big screens.

Apple Inc Earnings For 2QFY15

The iPhone makers reported an exceptional quarter earnings from the significant sales in China.

Apple Inc (AAPL) has been doing wonders in the tech world with the extraordinary sales of the iPhone that it reported in its quarterly report presented on April 27, 2015. The tech company was seen to have recorded an exceptionally high revenue increment in the quarter which was due to the strong sales of the new iPhone that was carried out in the previous fall. The kind of sales that the firm has been experiencing is one of its kinds.

In the much awaited quarter report, Apple Inc declared that it sold a massive $61.2 million items of the smartphone in a period of three months which the analysts believe is a number to be reckoned with. These sales have arisen by a huge 40% as compared to the previous year’s same quarter. One of the main reasons for such a rise in the sales was due the successful penetration that the company managed to do in China which was marked as one of the biggest achievements of the iPhone makers.

The revenue for Apple Inc came around $59 billion for the three months quarter with the earnings per share rising up to $2.33, as per a report by WSJ. According to the average selling price, in which the iPhone were sold and bought at, the price tag of $659 showed an increment of $60 if compared to the price the smartphones were previously sold at. In an interview, Tim Cook, who is the CEO of the Silicon Valley based company, told the WSJ that this time around, the company has experienced an unusual growth of customers switching from other phones to Apple phones which has been marked as another jewel in the firm’s crown.

The gross margin that was received by Apple in the quarterly results came around with a rise of 40.8% which was higher than the expected margin of 38.5%. Previously, the software company had decided to return around $130 billion to shareholders in the form of dividend but an increase was recorded in that department as well, as by March 2017, the firm has planned to return $200 billion to its shareholders.

The company has also managed to raise the cash revenue to $193.5 billion which totaled around only $178 billion by the end of the previous quarter.

Apple Inc Q2 Earnings for FY15 Preview

The iPhone makers are expected to report a rise in sales and revenue for the second quarter of the fiscal year.

Apple Inc has set the date of April 27, 2015 to announce the second quarter earnings of the company. The tech company has been receiving a lot of approvals and disapprovals all at the same time as equity firms cannot seem to agree on one perspective when it comes to the stock activities of the company. The majority of the financial firms believe that the iPhone makers are going to make it big this time around as well. However, equity analysts at Societe Generale seem to be very bearish about the stock as they have decreased their estimates for the upcoming quarter report.

Analysts at Stifel, however, are expecting Apple Inc to shock everyone with the extraordinary results that are predicted by them. These analysts are of the opinion that the consensus estimate is easily going to be surpassed by the Silicon Valley Company and there is no need for a debate about it. Analysts who have downgraded the shares of the iPod makers feel negative about the stock as they believe the Apple Inc Smart Watch is not going to work which might end up as a loss to the company.

According to the Street’s analysis of the revenue of Apple Inc, the numbers have come around at $54.9 million for the quarter. However, the Stifel analysts have become over bullish on the stock which is why they have ended up giving an estimate of $58.4 million for the sales of the tech company. One of the main reasons for their positive expectations is that the iPhone sales in China were carried out more successfully than expected.

The Street analysts believe that the earnings per share for Apple Inc will come around at$2.14 for the 2nd quarter of fiscal year whereas for the full year, the EPS has been estimated at $8.81 per share. As for the analysts at Stifel, the full year revenue generation has been predicted to be $231.2 billion. The analysts of the firm have also granted a ‘buy’ rating to the shares of the tech giant.

Currently, Apple Inc stock is trading at a price of $129.67 share value while the market value rests at $749.18 billion.