With 33 million unemployed in the US alone and many, many millions more worldwide in a similar boat, I don't see many people with money to spend for the next 3-6 months at least. Those that do may well, be like me and are keeping their wallets firmly closed for the forseeable future. Big ticket items are just not on my radar until the end of the year if that.
I think the worldwide economy will take 3-5 years to truly recover.
The APPL stock price may well drop again once the real picture of the world economy emerges.
Apple's most popular product is of course iPhone, and I would guess the majority of iPhones are financed through Apple or phone carriers. Basically, if you are paying a phone bill, you are paying between $20-60 a month for your phone, and you can swap it out annually if you wish. So while it's true that you have a $1,300 phone, it's pretty cheap to own on a monthly basis with no interest. So I bought a new iPhone 11 Pro Max this year and I will almost certainly buy an iPhone 12 Pro Max next year. Within my budget, honestly I barely notice the cost.
Because of that framework, I would not expect phone sales to decrease that much except with people who have lost their jobs. But I would guess that most iPhone customers are those who work at home, not those who are losing their jobs.
So if I want to put my money anywhere, I would expect one of the safest places to be is Apple stock.
David H Dennis said: Apple's most popular product is of course iPhone, and I would guess the majority of iPhones are financed through Apple or phone carriers. Basically, if you are paying a phone bill, you are paying between $20-60 a month for your phone, and you can swap it out annually if you wish. So while it's true that you have a $1,300 phone, it's pretty cheap to own on a monthly basis with no interest. So I bought a new iPhone 11 Pro Max this year and I will almost certainly buy an iPhone 12 Pro Max next year. Within my budget, honestly I barely notice the cost.
Because of that framework, I would not expect phone sales to decrease that much except with people who have lost their jobs. But I would guess that most iPhone customers are those who work at home, not those who are losing their jobs.
So if I want to put my money anywhere, I would expect one of the safest places to be is Apple stock.
Well, it isn't really subsidized anymore, just broken down into payments. So, you're looking at higher vs lower payments, or length of contract, etc. I suppose you're right in that a lot of people don't think that way, but they might have to if they get pinched financially.
Also, unless you mean self-employed (which I doubt accounts for that big of percentage of iPhone users), when jobs go away, so will many of the work from home jobs. But, I agree that as stocks go, Apple should be pretty good, at least long-term. They can weather a lot, and eventually (10 years?) things will recover.
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Because of that framework, I would not expect phone sales to decrease that much except with people who have lost their jobs. But I would guess that most iPhone customers are those who work at home, not those who are losing their jobs.
So if I want to put my money anywhere, I would expect one of the safest places to be is Apple stock.
Also, unless you mean self-employed (which I doubt accounts for that big of percentage of iPhone users), when jobs go away, so will many of the work from home jobs. But, I agree that as stocks go, Apple should be pretty good, at least long-term. They can weather a lot, and eventually (10 years?) things will recover.