Apple
AAPL
recently launched its latest app, Freeform, available in the latest versions of iOS, iPadOS and macOS.
Freeform offers a new kind of whiteboard experience that helps users to create, share and collaborate all in one place without worrying about layouts or page sizes.
Users can add various files like photos, video, audio, documents, PDFs, links to websites and map location links, sticky notes, shapes and diagrams to the blank canvas. iPhone and iPad cameras can even be accessed to attach an image or scanned doc directly to the board.
Another unique feature is users can invite others to work on the Freeform canvas together, even during facetime calls. Freeform whiteboards are stored in iCloud, so users can access them from any device.
This recent app offered by Apple is to attract varied customers to its products like iPhone, Mac book and iPad. AAPL is facing fierce competition from companies like
Dell Technologies
DELL
in the area of desktop and other computing devices.
Apple is operating in a highly competitive space where companies like Dell are vying for market share with aggressive pricing competition, frequent introduction of products and services and easy availability of products in the market.
Apple Widens Service Offerings to Boost Prospects
Apple’s prospects are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023. The company expects revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex.
However, the broader Computer and technology industry is reeling from the effects of macroeconomic turmoil like rising inflation and recession caused by rising interest rates. The current market volatility has made investors bearish about major tech companies like
Meta Platforms
META
and
Microsoft
MSFT
.
Meta stock has plunged 63.9% in the year-to-date period compared with the Zacks
Internet – Software
industry’s decline of 58.5%.
Shares of Microsoft have lost 23.5% year to date compared with the Zacks
Computer – Software
industry’s decline of 25.7%.
The slowing economy is likely to trigger cuts in ad spending, which will hurt the revenues of ad-driven Internet stocks like Meta, impacting their bottom-line growth. This downtrend is reflected in META’s share price movement.
The immediate concern regarding Microsoft is softness in the core computing market. The company is dependent on this market for the largest chunk of its revenue. Also, Microsoft is seeing increased competition in this market sector.
The Zacks
Computer and Technology
sector has plunged 33.2% year to date while Apple shares, which currently carries Zacks Rank #3 (Hold) have done relatively well, down 19.3% over the same period. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Apple Services and Wearables businesses are expected to drive top-line growth in fiscal 2023 and beyond. Services revenues are expected to witness a CAGR of 8.36% between fiscal 2021 and fiscal 2024.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. It currently has more than 900 million paid subscribers across its Services portfolio. The plethora of Apple Services available across its smart speaker for homes is expected to attract new customers for its products and drive its market share amid stiff competition.
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