Apple Inc. remains at the forefront of the tech industry, while its strategic buyback decisions raise questions about the company's future.
History of Apple's Buybacks
Over the past decade, Apple has bought back $704 billion worth of shares. This figure surpasses the market capitalization of 488 companies in the S&P 500 index. In the Q2 2024 earnings report, Apple resumed buybacks, exceeding its $100 billion buyback program initiated in 2018.
Competition with Samsung
Currently, Apple's price-to-earnings (P/E) ratio stands at 35.02, more than double that of Samsung's P/E of 16.17. Apple holds 25.68% of the mobile market, while Samsung has 20.93%.
Prospects for Innovation and Growth
With the new iPhone 17, Apple is not expecting significant market share expansion, although improvements have been noted. However, the company is lagging in major AI investments compared to competitors like Alphabet and Meta. This may affect Apple's ability to maintain user loyalty and market presence.
While stock buybacks prop up Apple's valuation significantly, the company faces limitations on organic growth. Innovative solutions such as AI may not be sufficient to justify the company's elevated metrics.
