Apple has become the first corporation to be valued at $3 trillion. Nonetheless, today’s announcement is far less essential and noteworthy than what the corporation has in mind for the future – and how it plans to achieve it.
It’s no secret that the continual internet talk regarding Apple’s earnings does not pique my interest. I’ve been saying that for a decade.
And, in reality, they’ve been dull for much longer. Any significant drama around Apple’s earnings had passed by 2003, and the subject of profit or loss had ceased to be a real worry in 2001.
For a long time, the news hasn’t been about Apple’s stock price or value. Apple’s valuation high today is a result of the genuine news, not the cause of it.
The cause, and hence what should kill column inches, rather than the $3 trillion valuations and $182.86 price per share required to get there, is how Apple CEO Tim Cook has handled the COVID pandemic and supply chain concerns.
Planning ahead of time saved the day
As far as we know, the iPhone and A-series processor development process takes at least 24 months from concept to shipping product. The last six months or so have been impacted by supply chain hold-ups, as the world has been experiencing for the last 18 months.
Apple has been observing limitations on what it does not control. According to Cook’s words, they’ve stolen some on “old” nodes such as power regulators, Intel processors, and the like.
The story is how Apple managed to sell as many iPhone 12 and iPhone 13 models in nearly two years while dealing with supply chain issues better than practically anybody else. And, in the midst of it all, it released Apple Silicon Macs and iPad Pro models, with the former being the platform’s first major architecture shift in 15 years — and a game-changer for users.
What’s coming next on top of the iPhone, and in addition to Apple’s Silicon migration, is the actual story. While the iPhone, iPad, and Mac upgrades we see in the coming year will keep Apple’s growth trajectory intact, what comes after that is the real story.
And, based on the past, $4 trillion is unavoidable, with $5 trillion within reach sooner rather than later.
2025 – Apple Car
Apple has been working on full-vehicle solutions since 2015, and possibly earlier. Detroit has chastised the company, claiming that it would take at least a decade to produce a car.
In 2025, Detroit’s decade will come to an end.
Rumors suggest that the “Apple Car” could be unveiled at any time between now and 2025. Project Titan is the overarching moniker for whatever eventually emerges from Cupertino’s research laboratories, be it a full vehicle or the internal systems that will be used to collaborate with a firm with more experience constructing full cars.
More speculations and chatter have circulated in the last year than in the prior five
When Hyundai revealed that it was in early talks with Apple to develop the “Apple Car” in January 2021, the rumor mill went into overdrive. Those discussions were placed on hold shortly after Hyundai’s blunder, sparking rumors about a prospective “Apple Car” partner.
Apple’s Project Titan employees also experienced a high rate of turnover. Kevin Lynch was promoted to lead the “Apple Car” project, with John Giannandrea continuing to provide oversight.
Several prominent engineers have left the project before the end of 2021, yet Apple appears to be pushing up work with a 2025 deadline. With 137 people and 69 vehicles on the road, the fleet of self-driving vehicle testers continues to grow.
Apple may announce cooperation in 2022, with a target launch date of 2025. Whatever the timing, the “Apple Car” is predicted to disrupt the automotive industry and produce up to $50 billion in revenue annually by 2030.
Apple AR and VR – hardware might be available as early as late 2022, with upgrades coming later Apple’s speculated smart glasses and headsets have been predicted for years. The concept originated with ARKit, and the software has evolved — with a significant increase in functionality launching during the pandemic.
With the addition of LiDAR to its iPad Pro and iPhone 12 Pro, Apple provided users with a hardware tool dedicated to AR experiences. And that technology has made its way to the iPad Pro.
These implementations look to be stepping stones to what Apple may do next. In the Augmented Reality area, the business is likely to offer something comparable to Google Glass, branded “Apple Glass.” A sleek and elegant AR wearable, on the other hand, maybe a few years away.
For the time being, Apple is working on a VR headset with mixed reality features that will be released in 2022. A headset like this is likely to be used largely for producing AR and VR experiences for customers.
Because it may rely on Apple’s powerful M1 CPU, the headset is believed to be a game-changer for VR. The first edition is expected to be less than a pound, but the second edition will be even lighter.
Customers may also be able to purchase an Apple VR headset to play games, connect in social settings, and possibly participate in the metaverse being constructed by numerous companies. Although the premium headgear will be aimed first and foremost at developers.
Finally, the VR headset appears to be moving Apple closer to its objective of creating a thin wearable for AR experiences. CEO Tim Cook has stated on numerous occasions that augmented reality is a more appealing target for consumers.
Apple can afford to be patient.
Perhaps my opinion is influenced by the fact that I do not believe it is ethical to own Apple shares while reporting on it. I’m glad for you if you own Apple stock or have it in a fund.
Regardless, Apple’s $3 trillion valuations will not help it build better, faster, or stronger gadgets, and Cook and company are well aware of this. That valuation gives it no more purchasing power than it currently has. It is not going to miraculously unlock any functionalities for users.
Given Apple’s existing — and diminishing by choice — cash holdings amid a period of ever-increasing market power, the $3 trillion valuations have no bearing on what the company intends to do or the road map it established years ago.
And, with its new ventures, it can afford to wait if anything like COVID slows things down. Apple TV+ was criticized by critics because it had almost no content when it first arrived. Today, Netflix, Sony, Paramount, and others are competing with the corporation for high-profile programming.
With the iPhone, Apple has dominated the market. It continues to capture the lion’s share of the smartphone market’s earnings. It is pleased with where it is in all of its business segments, as Tim Cook and CFO Luca Maestri repeatedly state.
Apple has only been the first to market in a handful of markets. For the majority of its products, it waits until it is comfortable with where it intends to land in the market before launching into it — and in doing so, redefines and disrupts the majority of where it arrives.
So, if it takes a decade to create a car, it will gladly wait while it determines where it wants to arrive. It can afford to wait if it wants to provide a promising first-generation product and develop it later, as it did with the Apple Watch and appears to be doing with its augmented reality projects.