Business model

Business model changes make Apple a more attractive investment

InvestorPlace – Stock market news, stock advice and trading tips

  • Apple (AAPL) may be about to cross a critical resistance point.
  • The company is considering big changes and potential new revenue streams.
  • Investors should keep an eye on AAPL stock and consider adding the stock to their holdings.

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Apple (NASDAQ:AAPL) is worth owning and/or buying as AAPL stock could trend higher in the second quarter of 2022. The company is famous for introducing breakthrough technologies, such as Macintosh computers many years ago and the iPhone in 2007.

Change can sometimes be scary. Yet even a cross-generational company like Apple can and must change, as tech companies need to innovate to stay competitive.

As we find out what Apple has been working on lately, the stock’s bullish thesis should only get stronger. In our final analysis, we should find that even a legacy company like Apple can successfully branch out into new market segments.

What’s going on with AAPL stocks?

Since December of last year, $185 has been a frustrating resistance level for AAPL stocks. He has banged his head against this award several times to no avail.

However, the resistance levels are supposed to be broken, and the second quarter of 2022 could offer the bulls their decisive moment. Patience should be rewarded as Apple nears a staggering $3 trillion market cap.

Even though Apple is a massive company, the company’s stock is not overvalued. Consider that Apple’s 12-month price-to-earnings (P/E) ratio is 29.6x, which isn’t unreasonable at all.

Yet the idea is not simply to buy AAPL stock based on its valuation or technical analysis. Remember that when you buy a stock, you are a co-owner of a business.

Thankfully, Apple is still a great company, and the company isn’t averse to trying new concepts and directions. For example, he would have ventured into financial technology (fintech) by developing payment processing tools.

Could Apple become a major competitor in the field of contactless payments? Also, will people consider Apple as the main source of credit history and scores? Stay tuned in 2022 as the company is likely to go beyond Apple Pay to a wider range of exciting fintech offerings.

An idea you can subscribe to

Over the past few years, subscription services have gone from a trend to a mainstay for many businesses. They have provided a boon for some businesses as subscriptions can create steady streams of income.

Have you ever imagined a subscription service for Apple hardware? In fact, there’s no need to imagine it anymore, as Apple plans to launch a subscription model for its devices in late 2022.

It marks a big change for Apple as we know it – and yet it makes perfect sense when you really think about it. A brand new iPhone can cost up to $1,599. A new MacBook could put a dent in your bank account for up to $6,099.

Even at lower prices for more basic models, not all consumers want to pay for these items in full upfront. Instead, they might have the option of paying more affordable monthly fees for these products. With this change, Apple may be able to bring a large, previously untapped group of consumers into the fold.

As Loup Ventures Managing Partner Gene Munster explained, “You have to think of new ways to win customers and part of that is product innovation and part of it is how the products are sold”.

Clearly, Apple already masters the science of product innovation. Now the company is trying another way to sell its products, and the result could be a financial boon for Apple.

What you can do now with AAPL actions

Apple is willing to try new ideas. Are you ready to try AAPL stocks?

If you already have a position in its stocks, now is a good time to consider adding some. If you’re not already invested, you can start today as Apple continues to evolve for the benefit of shareholders.

As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.