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Could Apple (NASDAQ:APPL) Survive a Financial Meltdown?

109

As the market fluctuates, all stocks are unstable and unpredictable at this stage. However, investors are more focused on Apple (NASDAQ:APPL), as the year has wrapped up nicely for the Tech Company. But due to uncertainty of the market status, investors are wondering if Apple (NASDAQ:APPL) will still be able to survive these volatile times. Once again, the market is expected to reach a financial meltdown. In order to determine Apple (NASDAQ:APPL)’s survival rate, here are few factors to consider:

–          Price evaluation: it is necessary to analyze previous crashes and see how long it took Apple (NASDAQ:APPL) to recover from the crisis. Back in 1997, the company stocks were set at $0.50 per share and after Steve Jobs return in July the same year, the stocks soared up to $5 by March 2000. IMac played a vital role in contributing to this success, in addition to the investors who had great interest in the IT field.

When the market crashed, Apple (NASDAQ:APPL) shares fell back to a low $1. Many investors pulled out from Apple (NASDAQ:APPL) and the tech stocks in general. But time showed that had they stuck to Apple (NASDAQ:APPL), it would have been profitable in the long run, because by March 2004 the Apple (NASDAQ:APPL) stock was back at $5, thanks to iPod and iTunes.

Furthermore, in 2009, when the financial meltdown occurred, and Apple (NASDAQ:APPL) fell from $28.55 in December 2007 to $11.76 in January 2009, investors sold off their stocks at really cheap prices as they were unsure of what the future holds. This crash was a result of a market panic worldwide that shook the Tech sector pretty bad.

 

–          Is the Luxury appeal enough to save Apple (NASDAQ:APPL):  As Apple (NASDAQ:APPL) comes attached with a luxury appeal, this saves Apple (NASDAQ:APPL) during economic downturn. We have seen in the past that names like Tiffany (NYSE:TIF) and BMW were less affected in times of recession due to brand image. In case of Apple (NASDAQ:APPL), back in 2007 and 2014, we saw that the iPhone demand kept rising regardless of the crisis. It’s like it was immune to it and brand loyalty played a major role here.

 

The only area of concern for Apple (NASDAQ:APPL) at this stage is if the iPhone sales which are at its peak at this point fall dramatically in the times of crisis. There would be no fix for it, if Apple (NASDAQ:APPL)’s biggest growth engine gets shattered. Therefore it’s a good idea that Apple (NASDAQ:APPL) introduces variety in its top products catalog by bringing in devices like iPad and Mac. Apple (NASDAQ:APPL) has the iWatch release in the pipeline for next year. According to estimates, Apple (NASDAQ:APPL) is expected to ship off over 60 million watches in the first year. With such predictions in view, Apple (NASDAQ:APPL) Watch could be the next revenue generating item.

Hence simply put, with some patience; the Apple (NASDAQ:APPL) investors might be in for a treat as Apple (NASDAQ:APPL) has extensive revenue generating plans for future.

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