AAPL - Apple Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
324.95
+0.08 (+0.02%)
At close: 4:00PM EST

317.70 -7.25 (-2.23%)
Pre-Market: 9:03AM EST

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Previous Close324.87
Open324.74
Bid0.00 x 800
Ask314.50 x 1000
Day's Range322.85 - 325.98
52 Week Range169.49 - 327.85
Volume20,028,447
Avg. Volume29,610,137
Market Cap1.422T
Beta (5Y Monthly)1.28
PE Ratio (TTM)25.80
EPS (TTM)12.60
Earnings DateApr 27, 2020 - May 03, 2020
Forward Dividend & Yield3.08 (0.95%)
Ex-Dividend DateFeb 06, 2020
1y Target Est334.45
  • Stock market news live: Stock futures tumble after Apple warns of coronavirus impact
    Yahoo Finance

    Stock market news live: Stock futures tumble after Apple warns of coronavirus impact

    Headlines moving the stock market in real time.

  • Samsung's foldable Galaxy Z Flip feels like the start of a revolution
    Yahoo Finance

    Samsung's foldable Galaxy Z Flip feels like the start of a revolution

    Samsung's Galaxy Z Flip is the first foldable phone that gets the design right.

  • Reuters

    GLOBAL MARKETS-Apple virus warning shakes stocks, euro near three-year low

    World stocks markets were knocked off record highs on Tuesday as two of the world’s mega companies and Europe's largest economy, Germany, reported damage from the coronavirus outbreak. Apple’s stock fell almost 6% in Frankfurt at one stage and Wall Street looked set for a rocky ride later after the iPhone maker warned it was unlikely to meet the March quarter sales guidance that it had set just three weeks ago. China sensitive stocks led the falls but the mood had been darkened further by a far-worse-than-feared German investor sentiment survey pointing to a deepening manufacturing recession there.

  • Dow Jones Today: Stock Futures Pressured On Apple Sales Warning; RH Soars On Increased Buffett Stake
    Investor's Business Daily

    Dow Jones Today: Stock Futures Pressured On Apple Sales Warning; RH Soars On Increased Buffett Stake

    The Dow Jones was under pressure in premarket trading Tuesday, hurt by a coronavirus-related sales warning from Apple.

  • China Coronavirus Concerns Weigh On Apple Stock, Chipmakers
    Investor's Business Daily

    China Coronavirus Concerns Weigh On Apple Stock, Chipmakers

    Apple stock sank on Tuesday after the iPhone maker said the coronavirus outbreak in China would impact its March-quarter results more than expected. Apple's chip suppliers fell in sympathy.

  • U.S. Futures Fall After Apple Warning; Bonds Gain: Markets Wrap
    Bloomberg

    U.S. Futures Fall After Apple Warning; Bonds Gain: Markets Wrap

    (Bloomberg) -- U.S. equity-index futures fell along with European stocks on Tuesday after Apple Inc. said quarterly sales would miss forecasts, spooking investors who had hoped for a limited economic impact from the deadly coronavirus. Treasuries rose and the dollar edged higher.Contracts on the three major U.S. equity benchmarks dropped, with Apple shares slumping as much as 4.2% in pre-market trading after the iPhone maker warned on both production and sales disruptions due to the epidemic. In Europe, tech companies were among the biggest laggards in the Stoxx 600 index as Apple suppliers including Dialog Semiconductor Plc and AMS AG slid. HSBC Plc tumbled the most in three years after it said it will slash jobs in a “fundamental restructuring,” while also flagging risks due to the virus.Equity benchmarks in Tokyo, Seoul and Hong Kong saw declines of over 1%, while stocks in Shanghai fluctuated. European bonds climbed, while the euro edged lower after a German investor-confidence index plunged. Crude oil retreated toward $51 a barrel in New York on concern the illness will cut fuel demand.Corporate reports on Tuesday raised renewed concerns about the coronavirus impact, even as the growth rate of cases in China’s Hubei province -- the epicenter of the disease -- continues to stabilize. It’s a turnaround from Monday, when sentiment was lifted by Chinese policy makers’ moves to support companies hit by the prolonged shutdown of large parts of the country. BHP Group said commodity prices will take a hit if the fallout extends beyond the end of next month.“Sentiment toward global risk turned sour today,” said Dariusz Kowalczyk, an emerging-markets strategist at Credit Agricole SA. “We continue to believe that markets have not yet fully priced in the magnitude of the hit to China’s economy as a result of the Covid-19 outbreak.”Elsewhere, the Australian dollar weakened after the Reserve Bank of Australia said it reviewed the case for a further rate cut at its last meeting, but didn’t go ahead. Emerging-market stocks and currencies fell.Here are some key events coming up:Earnings season rolls on, with results from Deere & Co. set for Friday.Minutes of the most recent Federal Reserve meeting are published on Wednesday.Indonesia is expected to cut interest rates on Thursday, following emerging-market peers that have already moved.Group of 20 finance ministers and central bank chiefs are scheduled to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.These are the main moves in markets:StocksThe Stoxx Europe 600 Index sank 0.4% as of 8:18 a.m. New York time.Futures on the S&P 500 Index declined 0.5%.The MSCI All-Country World Index declined 0.3%.The U.K.‘s FTSE 100 Index decreased 0.8%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The euro decreased 0.2% to $1.0814.The British pound advanced 0.2% to $1.303.The Japanese yen appreciated 0.1% to 109.76 per dollar.BondsThe yield on 10-year Treasuries declined four basis points to 1.54%.The yield on two-year Treasuries fell three basis points to 1.40%.Germany’s 10-year yield fell two basis points to -0.42%.Britain’s 10-year yield decreased three basis points to 0.609%.CommoditiesWest Texas Intermediate crude sank 2.1% to $51.02 a barrel.Gold strengthened 0.4% to $1,587.79 an ounce.\--With assistance from Benjamin Dow, Andreea Papuc and Joanna Ossinger.To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Yakob PeterseilFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oil Snaps Five-Day Rally as Virus Continues to Weigh on Demand
    Bloomberg

    Oil Snaps Five-Day Rally as Virus Continues to Weigh on Demand

    (Bloomberg) -- Oil fell, snapping a five-day rally, amid renewed fears over the impact on the global economy and fuel demand from Asia’s deadly coronavirus.Brent futures fell 2.3% to trade near $56 a barrel in London, slipping with equity markets as Apple Inc. warned it will fail to meet sales targets this quarter because of disruption from the virus. Chinese refineries continue to trim processing rates, and at least two trading houses have rented crude-oil storage tanks in South Korea as a supply glut looms.Citigroup Inc. said that markets had become overconfident in expecting a V-shaped rebound from the epidemic and oil prices are likely to remain weak during the first half of the year.The supply-chain recovery in China could be problematic despite the stimulus pledge from Beijing, Citigroup analysts including Edward Morse said in a note to clients. Total Chinese product demand may drop by about 3.4 million barrels a day in February and be 1.5 million barrels per day lower on average in the first quarter.Brent oil rallied the past five days -- the longest run of gains this year -- amid optimism the worst economic impacts of the coronavirus had been accounted for. China pledged a raft of fiscal stimulus measures to offset the disruption, and Singapore planned to boost spending to counter the slowdown in tourism and trade.“The short-covering rally failed to gain traction, with the overhang of supply weighing on the market,” said Ole Sloth Hansen, head of commodities strategy at Saxo Bank A/S in Copenhagen. “Activity is slowly picking up, and while oil demand for storage has remained robust, the demand for products remains low. The market will have to live with this being -- at best -- a W-shaped recovery rather than a V-shaped one.”Brent for April settlement fell $1.21 to $56.46 on the ICE Futures Europe exchange as of 1:16 p.m. in London. West Texas Intermediate futures for March delivery declined $1.02 from Friday’s close to $51.03 a barrel. There was no settlement Monday due to the Presidents’ Day holiday in the U.S.\--With assistance from James Thornhill.To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net;Saket Sundria in Singapore at ssundria@bloomberg.netTo contact the editor responsible for this story: James Herron at jherron9@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • China Will Use Medical Purchases to Track Patients: Virus Update
    Bloomberg

    China Will Use Medical Purchases to Track Patients: Virus Update

    (Bloomberg) -- Hubei, the Chinese province at epicenter of the coronavirus outbreak, said it plans to use recent purchases of medicines to look for unidentified patients.Earlier, China reported the lowest number of new cases since announcing a change in its method of detection last week. So far, 73,424 people have been infected and 1,873 have died around the world, the vast majority of them in Hubei.Apple Inc. said it would miss sales targets, driving down European stocks and U.S. futures. German investor sentiment plunged, South Korea warned of an economic emergency and Singapore set aside millions to counter the outbreak.Key DevelopmentsChina death toll 1,868; mainland cases rise to 72,436Hubei reports 1,807 new cases; 93 more deathsApple’s cut revives questions about China over-relianceExpert says outbreak could peak in some areas by end-Feb.China ramps up virus propaganda and stirs even more outrageClick VRUS on the terminal for news and data on the novel coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here.Hubei Will Search for People Who Bought Fever Drugs (7:24 a.m. NY)China’s Hubei province said it will use recent purchases of fever and cough medicines to sweep for unidentified coronavirus patients, a new step that leverages the government’s surveillance powers to try and stop the virus.The province has enacted a lockdown of tens of millions of people, opened new hospitals and isolation centers, mandated self-reported temperature checks, and conducted house-to-house searches for people showing symptoms. The measures have coincided with a drop in newly reported cases in Hubei, where the outbreak began and most infections and deaths have occurred.The government will investigate anyone who bought fever or cough medicines since Jan. 20, whether they were purchased from brick-and-mortar stores or online. It will also track down anyone who sought treatment for a fever since then. Anyone selling treatments for a cough or fever will have to check and register and report the patient’s identity, the provincial government said.China’s authorities have broad powers of surveillance, enabled by an almost totally mobile-based payment systems that are integrated into most aspects of everyday life. While they’ve helped control movement in the province and the city of Wuhan, creating a regional quarantine, citizens there have complained of harsh treatment and short supplies as the lockdown drags on.More Companies Warn on Virus Impact (7:24 a.m. NY)Walmart Inc.’s CFO said the virus could lower first-quarter earnings per share by a few cents. The retailer said it had closed “less than a handful” of stores in the country. Separately, Medtronic said it expected the outbreak to impact fourth-quarter results, but that this was hard to quantify.Earlier, Apple slumped after saying it wouldn’t be able to hit sales targets. The news drove down U.S. stock futures, as well as shares in European chipmakers and Asian suppliers.Xi Tells U.K.’s Johnson China Can Meet 2020 Goals (6:47 a.m. NY)China is confident in achieving economic development targets set for this year, President Xi Jinping told U.K. Prime Minister Boris Johnson in a phone call, according to China Central Television. China’s efforts to fight coronavirus are yielding significant results, Xi said.IHG CEO Calls Coronavirus ‘Short-Term Blip’ (6:28 a.m. NY)InterContinental Hotels Group shares reversed a decline after Chief Executive Officer Keith Barr said the outbreak was a “short-term blip” in the Chinese market.IHG opened six hotels in China in January and signed 11 hotels in February, Barr said on an earnings call. “Business is still moving ahead” and the “long-term fundamentals in China remain absolutely strong,” he said.Passengers Should Have Been Released Earlier: Netanyahu (6:10 a.m. NY)Passengers on the Diamond Princess cruise ship should have been dispersed as quickly as possible, Israeli Prime Minister Benjamin Netanyahu said. There were 15 Israeli citizens on board -- three have been infected and the remainder are scheduled to be flown back to Israel on Thursday.Japan said on Tuesday another 88 people aboard the quarantined ship had been infected, bringing the total number of cases to 542 people. Earlier, Britain became the latest country to look at evacuating its nationals from the Diamond Princess, following Australia and South Korea.Japan expects to remove all passengers from the cruise ship by Friday.Fredriksen’s Bulk-Shipping Firm Warns on Profits (6:09 a.m. NY)Golden Ocean Group Ltd., one of the world’s biggest dry-bulk shipping companies, said the coronavirus outbreak will hurt profits and slashed its dividend to a third to protect its balance sheet. The warning illustrates the toll from the virus on the world’s second-biggest economy and the global ripple effects, including on demand for transport of goods in and out of China.German Investor Confidence Plunges (6:08 p.m. HK)Investor sentiment in Europe’s largest economy dropped on concerns the outbreak will disrupt trade. ZEW’s index of expectations for the next six months fell below even the most pessimistic estimate in a Bloomberg survey. The poll suggests confidence is fading that Germany can stem a manufacturing recession that has lasted more than a year.“Economic development is rather fragile at the moment,” ZEW President Achim Wambach said in a statement. The outlook for export-intensive sectors has deteriorated “particularly sharply” as a result of the epidemic that originated in China, he said.Earlier on Tuesday, South Korea’s President Moon Jae-in called for “extraordinary” steps to minimize the virus’s impact and said it was an emergency for the country’s economy.Virus May Curb China Oil and Gas Use But Not Emissions (5:33 p.m. HK)A government stimulus package being planned to combat the economic impact of the viral outbreak will probably focus on increasing investment in infrastructure, which will likely boost usage of coal, BloombergNEF said in a report. The dirtiest fossil fuel continues to be the main source of power in China despite efforts in the past decade to clean up the sector by favoring new renewable generation.Brent futures fell 1.8% to trade below $57 a barrel in London.Apple Slumps on Sales Warning (5:12 p.m. HK)Apple shares fell 4.2% in pre-market trading after the technology giant said it doesn’t expect to meet revenue guidance for the March quarter, citing the impact of the coronavirus outbreak.The news also hit U.S. futures as well as technology stocks in Europe and Asia.Hong Kong Jobless Rate Was Rising Before Virus Hit (5:02 p.m. HK)The jobless rate rose in January for a fourth straight month, reaching its highest level since 2016 as Hong Kong’s businesses struggle from the political unrest and also from the disruption starting late in the month caused by the coronavirus outbreak.The city’s jobless rate rose to 3.4% for the November to January period, the same as the median forecast in a survey of economists. The string of increases was the longest since 2009, in the aftermath of the global financial crisis. The data does not reflect the full impact of shutdowns from the coronavirus outbreak.HK to Extend Virus Monitoring, Lab Tests (4:54 p.m. HK)Hong Kong health authorities will extend novel coronavirus surveillance to include testing outpatients and those at emergency wards, Under Secretary for Food and Health Chui Tak-yi said at a briefing.China Outbreak May Peak in Some Areas in Feb.: Expert (4:41 p.m. HK)Zhong Nanshan, a respiratory disease expert advising the Chinese government, expects the coronavirus outbreak to peak by mid to late February in southern China, Xinhua reported. The forecast is based on mathematical models and governments’ control measures.IMF Cuts Nigerian Growth Forecast (4:15 p.m. HK)The International Monetary Fund cut its estimate for Nigerian economic growth, as oil prices slump amid the coronavirus outbreak. The forecast for Africa’s top crude producer was lowered to 2% from 2.5%, the lender said in a statement on Monday.SAT Tests Scrapped For Chinese Students (3:43 p.m. HK)The College Board, which organizes the standardized Scholastic Assessment Test, or SAT, for admission to colleges in the U.S., canceled the March 14 test for all registered students traveling from China to other locations for the exam.The test will be administered in Hong Kong, Macau and Singapore, but not in mainland China.Singapore Budgets Millions to Counter Virus (3:09 p.m. HK)Singaporean authorities are setting aside an additional S$800 million ($575 million) in the city-state’s budget to support efforts to fight and contain the virus, Deputy Prime Minister Heng Swee Keat told Parliament.Earlier this month, Singapore Airlines and subsidiary SilkAir announced a temporary reduction in flight services across their global network, owing to weak demand as a result of the outbreak.Shanghai Schools to Remain Suspended (3 p.m. HK)Colleges and schools in China’s financial hub will remain suspended in March due to the outbreak and online teaching will be provided, the city’s government said. It said it would decide when to reopen campuses based on the development of the epidemic.Philippines to Allow Workers to Return to Hong Kong, Macau (3 p.m. HK)The Southeast Asian nation will allow its citizens employed in Hong Kong and Macau to return to their jobs, partially lifting a travel ban imposed weeks ago to prevent the virus’s spread.The government will exempt those working in the two cities from the ban “subject to certain formalities,” Foreign Affairs Undersecretary Brigido Dulay tweeted. It comes after the government lifted a days-old travel ban on Taiwan on Feb. 14.New Doctor Fatality (2:03 p.m. HK)State-run CCTV reported the death of neurosurgery expert Liu Zhiming, director of Wuhan Wuchang Hospital, underscoring the risks of the virus for medical workers on its front lines. It comes after the death earlier this month of Li Wenliang, a city doctor who was sanctioned for attempting to bring the virus to light early on -- and whose death sparked a rare outpouring of public anger in the country.More than 1,700 medical workers have been infected by the coronavirus, according to China’s National Health Commission, most of them in Wuhan. At least six have died.\--With assistance from Shinhye Kang, Dominic Lau, Drew Armstrong, Isabel Reynolds, Anand Krishnamoorthy, Natalie Lung, Peter Elstrom, Sam Kim, Derek Wallbank and Crystal Chui.To contact Bloomberg News staff for this story: Karen Leigh in Hong Kong at kleigh4@bloomberg.netTo contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, ;Adveith Nair at anair29@bloomberg.net, Karen Leigh, Jeff SutherlandFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Spain sends bill on taxing web giants' Spanish revenues to parliament

    The Spanish government has sent a bill to parliament proposing to tax revenues booked by web giants such as Google (GOOGL.O), Amazon (AMZN.O) and Facebook (FB.O) in Spain, budget minister Maria Jesus Montero said on Tuesday. The government proposes to levy a 3% tax on large web companies that generate global revenue of more than 750 million euros ($811.05 million) per year and more than 3 million euros in Spain, Montero said.

  • Apple’s coronavirus warning wasn’t a total surprise, but magnitude rattles Wall Street
    MarketWatch

    Apple’s coronavirus warning wasn’t a total surprise, but magnitude rattles Wall Street

    Investors may face a rocky session for Apple shares on Tuesday after its coronavirus-linked warning, but bullish investors are looking past it.

  • Dow Jones Futures: Apple Warns On Coronavirus, Walmart Earnings Miss
    Investor's Business Daily

    Dow Jones Futures: Apple Warns On Coronavirus, Walmart Earnings Miss

    Futures fell as Apple warned on sales, citing the coronavirus impact on iPhone output and demand. Walmart earnings missed. InMode earnings are due.

  • MarketWatch

    Apple set to lose title of most valuable U.S. companies to Microsoft

    With Apple Inc. shares falling 3.1% in premarket trading Tuesday, Microsoft Corp. is on track to take back the No. 1 position on the list of the U.S.'s most valuable companies by market capitalization. Microsoft's stock is down 0.2% ahead of the open, which means the software giant is headed toward a market cap of $1.408 trillion at the open, while Apple is on track to open with a market cap of $1.378 trillion. The last time Microsoft closed as the most valuable company was Feb. 11 and Feb. 10, which ended a 67-session run with Apple at No. 1. The companies were still well ahead of third-place Amazon.com Inc. , which closed Friday with at market cap of $1.063 trillion, and fourth-place Alphabet Inc. at $1.044 trillion.

  • Financial Times

    FirstFT: Today’s top stories

    “In response to government epidemic control requirements to prioritise prevention and safely resume work, and at the same time improve the quality of our worker reception services” non-Zhengzhou workers had to temporarily hold off reporting for work, said a notice displayed at the facility and seen by the Financial Times. In Europe, Austrian chipmaker AMS and Frankfurt-listed Dialog Semiconductor, which both supply Apple with parts, were the region’s two worst performing major companies.

  • Barrons.com

    Apple’s Coronavirus Warning Has Tech Stocks Falling. The Market Is Dropping.

    Apple said it wouldn’t meet its quarterly financial guidance because of the Chinese coronavirus outbreak. That has shares around the world falling Tuesday morning.

  • Barrons.com

    Microsoft Stock Could Keep Surging. How to Play It With Stock Options.

    Investors are aggressively positioning for the market to trade even higher. This has created historically unusual conditions in the options market.

  • 20 years after dot-com peak, tech dominance keeps investors on edge
    Reuters

    20 years after dot-com peak, tech dominance keeps investors on edge

    SAN FRANCISCO/NEW YORK (Reuters) - As Wall Street approaches the 20th anniversary of the piercing of the dot-com bubble, today's decade-old rally led by a few small players shows some similarities that cautious investors are keeping an eye on. March 11, 2000 marked the beginning of a crash of overly-inflated stocks that would last over two years, lead to the failure of investor favorites including Worldcom and Pets.com and take over 13 years for Wall Street to recover from.

  • MarketWatch

    Apple's stock cutting more than 70 points off the Dow's price

    Shares of Apple Inc. sank 3.3% in premarket trading, to pace the Dow Jones Industrial Average's decliners ahead of the open, in the wake of the technology behemoth's revenue warning over the weekend. The stock's implied price decline would shave about 73 points off the Dow's price, while Dow futures dropped 180 points. Apple's stock has run up 21.7% over the past three months through Friday, while the Dow has gained 4.9%.

  • Financial Times

    Coronavirus restrictions hit return to work at Apple’s biggest iPhone plant

    Apple’s biggest iPhone plant is struggling to return to full production after China’s new year holiday because of restrictions on worker movement caused by the coronavirus, adding to concerns that the outbreak will have a lasting effect on the US company. Contract manufacturer Foxconn assembles many of Apple’s newest iPhones at a huge factory complex at Zhengzhou in China’s Henan province. At full production, more than 200,000 workers put together iPhones on its assembly lines.

  • Stocks to march higher, but switch into value delayed until virus fears recede, strategist argues
    MarketWatch

    Stocks to march higher, but switch into value delayed until virus fears recede, strategist argues

    The combination of low inflation risk, solid growth outlook, and high earnings yields will keep driving stocks higher, argues one strategist.

  • Financial Times

    Apple’s coronavirus sales warning hits global stocks

    Global stocks fell as a sales warning from Apple rippled across markets in the latest sign of the mounting corporate and financial cost of the coronavirus outbreak. Europe’s major bourses all fell in late-morning trading on Tuesday, sending the composite Stoxx Europe 600 down 0.5 per cent. Futures pointed to similar losses for the S&P 500 on Wall Street, while the tech-weighted Nasdaq was set to fall around 1 per cent. Shares in Asia were worst hit — Tokyo’s Topix index dropped 1.3 per cent, a seventh straight decline, while Seoul’s Kospi index and Hong Kong’s Hang Seng both shed 1.4 per cent.

  • Apple Is Handcuffed to the iPhone. Just Like Its Customers
    Bloomberg

    Apple Is Handcuffed to the iPhone. Just Like Its Customers

    (Bloomberg Opinion) -- Apple Inc.’s earnings warning is an unfortunate reminder that, for all of its work to change investor perceptions over the past few years, it remains “the iPhone company.”For much of its six-year reign as the world’s biggest company by market capitalization through to the end of 2018, Apple was actually less valuable than Google parent Alphabet Inc. and Facebook Inc. on one crucial measure. The smartphone maker’s shares traded at a discount to those of the advertising technology giants based on its projected earnings — meaning investors were willing to pay more for a share of its rivals’ future profit. Even in its pomp three years ago, Apple’s stock traded at just 14 times forward earnings. Alphabet and Facebook traded at 20 times and 24 times earnings respectively.This showed that investors were more confident in Google and Facebook maintaining, or increasing, their profits that they were in Apple doing the same. That was largely because Apple is fundamentally a hardware company: At the time it was getting almost two-thirds of its revenue from the iPhone. It has lower gross profit margins since it has to pay for all the components used to make the handsets, as well as the labor and shipping costs. And, in order to meet its earnings targets, Apple has to convince consumers to spend another $800 on a smartphone every two years. If it ever came up with a dud iPhone, then earnings would suffer.As software companies, Google and Facebook have much higher gross profit. And given their stranglehold on internet advertising, they can count on regularly recurring revenue from that business. Back in 2017, Facebook knew it could generate an average of $21 per quarter for each user from fees that brands would pay to get their ads in front of users’ eyeballs. It wasn’t dependent on any one consumer product to keep that income flowing.Apple, unhappy about its relative discount, has spent much of the past four years working to lose it by moving beyond hardware. In 2019, iPhone sales represented 55% of its total revenue, down from a 2015 peak of 66%. In part, that’s because sales of the smartphone have declined, but Chief Executive Officer Tim Cook has also invested aggressively in new services (think Apple Music, TV+, News+, Arcade and so on), as well as wearable devices such as the Apple Watch and AirPods.This has made Apple less dependent on the iPhone. And it’s made the company’s customers more dependent on the device. Since the Apple Watch must be paired with an iPhone, for instance, it reduces the chance of customers trading in their Apple handset for a phone that runs on Android. The handcuffs are tightened every time somebody installs a new game from Arcade or adds songs from Apple Music to their library – they’d lose them all by abandoning the company’s operating system.Apple’s valuation has reacted commensurately. The stock is trading at 23 times forward earnings, more than Facebook’s 21 times and just shy of Alphabet’s 24 times. That’s partly down to the adtech giants’ own regulatory troubles — brought on by their troubling use of personal data and disquiet about their online ads duopoly. But Apple has succeeded too in convincing investors that it has dependable recurring revenue.That faith will have been shaken a little on Tuesday morning, after the company said revenue in the first three months of the year won’t hit the low end of its expected $63 billion to $67 billion range. The stock was trading some 4% lower in out-of-hours trading. The new coronavirus has stifled demand from Chinese shoppers less able to leave the house, and made it harder to recruit the workers needed to make its new low-cost handset.That stifled demand will no doubt recover once the virus abates. Nonetheless, this is a clear reminder that, for all its efforts, the iPhone is still Apple’s chief source of income. And that it will always be vulnerable to the capricious nature of consumer demand.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    YOUR MONEY-What it means to invest with a gender lens

    When clients tell financial adviser Catherine Valega that they want to invest their money in women, they are not always clear what they mean. If you have less than $1 million, investing with a gender lens typically means buying shares in mutual funds or exchange-traded funds that pick stocks with the goal of advancing the interests of women. For direct investments in women-led firms or businesses focused on women's issues, you have to meet the high minimum investments of impact venture capital funds.