Sector: Information Technology | Focus: Technology Hardware, Storage & Peripherals
HQ: Cupertino, California
Financial Risks
Apple faces macroeconomic risks (slow growth, recession, inflation, interest rate hikes, currency fluctuations) impacting consumer spending and supply chain. Political instability, trade disputes, natural disasters, and public health crises pose further disruptions. Single-source component suppliers, manufacturing partners, and logistics create supply chain vulnerabilities. Product defects, legal proceedings (antitrust lawsuits, regulatory investigations), and changing tax laws add to financial risks. Fluctuations in foreign exchange rates and investment portfolio values also pose risks.
Financial Upside
Apple's strong cash position ($140.8B) and access to debt markets support its cash requirements and capital return program. Services revenue growth (13%) and higher gross margins (46.2%) in 2024, compared to 2023, suggest potential for continued profitability. The share repurchase program ($95B in 2024) and dividend increases (from $0.24 to $0.25) indicate a commitment to shareholder returns. New product introductions and software updates could drive future sales growth.
