"Apple isn’t actually worth $2 trillion”

Hi Reader,

Max, founder of Finimize, here. Just wanted to flag something you might like… 

Carl, our lead analyst, has always been very vocal about the fact he thinks Apple’s $2 trillion-plus valuation is massively overblown – even though he has all the company’s latest gear.

Why? Well, for one, he points out that hardware companies like Apple tend to lead the way for around ten years before dropping off. Remember Palm, Nokia, and BlackBerry?

Apple’s iPhone, as Carl points out, has now taken center stage for the last thirteen years, and – true to form – its shipments are starting to slow.

Big deal, you might think: its services segment – TV, Music, and so on – will keep it going. And you’re right, a short-term blip in a company’s earnings wouldn’t normally outweigh its long-term prospects.

But here’s the thing: Apple’s struggling to get more than a quarter of its iPhone users to actually pay for those services. And as competition heats up, that’s not going to get any easier. 

As Carl puts it, that leaves you with “a company where the narrative has outpaced the numbers.”

It’s a great read that digs into Apple’s business model, lays out the numbers in plain English, and pits its stock against other tech giants (spoiler: it’s losing). 

And it’s available to all our Finimize Premium members.

Start your one-week free trial to read it today. You’ll get full access to all our analysts’ opinion pieces, as well as our library of podcasts and deep-dives, exclusive community events, and much more besides.

Have a great weekend,
Max