Apple’s stellar performance

Apple’s stellar performance

Year on year Apple shares climbed a median of nearly 27 percent in the time period between two weeks before each announcement to six months later. There is no exception in 2017, Apple’s market cap has reached a record high of 900 billion.  In the last financial year Apple’s capital expenditure had increase by more than 16% to USD 14.9bil. The Company has substantial investment in equipment and leasehold improvements, information systems, inventory and personnel in relation to its retail store worldwide. In 2017, there are 2 Apple Flagship stores open Singapore (in May) and Taiwan (in July). With the unique design elements, prime locations and size, Apple didn’t held back on the budget keeping in mind the importance of brand awareness on its lifestyle product. On another note, product tooling and manufacturing process equipment, infrastructure and retail store facilities has also taken up significant chucks of the 2017 capital expenditure. The Company has invested in manufacturing process equipment which majority are held with outsourcing partners in China. With the aggressive expansion on its retail front and back end manufacturing investment. It is not hard to believe that Apple’s market cap to reach 1 trillion in 2018.

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