Apple continues to dominate technology industry
For the past three quarters, everything seemed horrible for Apple. It lost half of its market capitalization, rivalry increased and innovations seemed to have stopped. However, its domination in the technology industry was anticipated to continue.
The announcement of share buyback made by Apple's Tim Cook was expected to trigger an upward trend soon. Buybacks were a mark of a corporation with solid fundamentals as well as a horde of cash. The dividend payout of Apple also increased by 15% which was equivalent to US$3.05 each share. The company's decent dividend meant that it is secure for a long-term progress and that it is a good investment. Furthermore, the company's return on equity was reported to be 40%.
However, the level of innovation of Apple dropped which took a toll on its share price. This was further considered as a negative catalyst to the growth of the company. Also, price and product competition hurt the company's smartphone market. Apple only kept on reviving its old products which led to the success of its rivals in making better versions.
Experts believed that Apple would remain dominant in the industry. Then again, it would experience tight competition from its major competitors which may lead to its downfall.
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