Apple is one of the most affluent tech company backed by huge and huge capital. Most of the investors who have invested their money in the firm seem to be happy and completely satisfied with the performance of the company. As according to the latest reports by the investment firm Piper Jaffrey, Apple valuation is vastly undervalued by the investment firms. Financial Analyst Gene Munster noted that Google’s valuation is about 19 times higher than the projected operating revenue for the company in 2017. Apple’s valuation for iPhones is at $264 billion, keeping the total market capitalization at $590 billion with $160 billion in net cash for the company.
Munster also noted that the business coming from services for Apple has nearly grown up by 60 percent for Apple in the year 2015. Apple has reportedly shifted its focus to their services for increasing their marginal profit from the consumers. Looking at the growth of the service business for Apple, their valuation is definitely undervalued in the market. Piper Jaffrey has quoted the price of Apple shares at $172 each unit. After the recent losses of the sales for Apple iPhone 6 units, Apple has taken a giant step for their production in 2017. Post the launch of their upcoming model iPhone 7, Apple is said to be undertaking a huge decision for their next production.
Apple has geared its focus on launching a complete makeover for their iPhone. Apple iPhone 6 was a complete disaster for them. They could never believe that the sales would marginally drop so much for them. Apple had incurred huge losses for IPhone 6 units. They also launched iPhone SE for covering the losses however they could not again make much delight for people. It went down again and was a complete disaster for them. Apple is looping in a complete makeover in anticipation of making good sales and growing their market share and company valuation.
