Business Model Changes Make Apple a More Interesting Investment

  • Apple (AAPL) may be on the verge of breaking through a critical resistance point.
  • The company is considering big changes and new potential revenue streams.
  • Investors should keep an eye on AAPL stock and consider adding the shares to their holdings.
Apple store. Apple Inc. (AAPL) sells consumer electronics, computer software, services and personal computers.

Source: Vytautas Kielaitis / Shutterstock.com

Apple (NASDAQ:AAPL) is worth holding and/or buying, as AAPL stock could make a move to the upside in 2022’s second quarter. The company is famous for introducing groundbreaking technology, like Macintosh computers many years ago and the iPhone in 2007.

Change can be a scary thing sometimes. Yet even an intergenerational company like Apple can and should change, as technology businesses must innovate to stay competitive.

As we discover what Apple’s been working on lately, the bullish thesis for the stock should only grow strong. In our final analysis, we should find that even a legacy business like Apple can successfully delve into new market segments.

AAPL Apple $177.43

What’s Happening with AAPL Stock?

Since December of last year, $185 has been a frustrating resistance level for AAPL stock. It has bumped its head against that price point multiple times to no avail.

However, resistance levels are meant to be broken, and 2022’s second quarter could provide the bulls their breakthrough moment. Patience should be rewarded as Apple approaches a mind-boggling $3 trillion market capitalization.

Even while Apple is a massive company, the company’s shares aren’t overpriced. Consider that Apple’s trailing 12-month price-to-earnings (P/E) ratio is 29.6x, which is not unreasonable at all.

Yet the idea isn’t to just buy AAPL stock based on its valuation or its technical analysis. Remember, when you’re buying a stock, you’re a part-owner of a business.

Thankfully, Apple remains a terrific business and the company isn’t averse to trying out new concepts and directions. For instance, it is reportedly venturing into financial technology (fintech) as it develops payment-processing tools.

Could Apple become a major competitor in the area of contactless payments? Moreover, will people consider Apple as a primary source of credit history and scores? Stay tuned in 2022, as the company is likely to move beyond Apple Pay into a broader array of exciting fintech offerings.

An Idea You Can Subscribe to

Over the past few years, subscription services have changed from a trend to a mainstay for many businesses. They’ve provided a windfall for some companies, as subscriptions can create steady revenue streams.

Did you ever imagine a subscription service for Apple’s hardware, though? Actually, there’s no need to imagine it anymore, as Apple is reportedly planning to launch a subscription model for its devices in late 2022.

This 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 as much as $1,599. A new MacBook could put a hole in your bank account up to $6,099.

Even at lower prices for more basic models, not every consumer wants to pay for those items in full up front. Instead, they could have the option to pay a more affordable monthly fee for those products. With that change, Apple might 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 over and some of it is through product innovation and the other is through how the products are sold.”

Obviously, Apple has already mastered the science of product innovation. Now, the company is trying out a different way of selling its products, and the result could be a financial windfall for Apple.

What You Can Do Now With AAPL Stock

Apple is willing to try out new ideas. Are you willing to give AAPL stock a try?

If you already have a position in its shares, this is a good time to consider adding to that. If you’re not already invested, you can start today as Apple continues to evolve to the shareholders’ benefit.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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