Part 4/6:
Additionally, Apple’s stock trades at a modest valuation of about 10.5 times earnings, which many see as undervalued especially when considering its dominant market position and significant cash reserves. With $233 billion in cash and long-term securities—most of which are held overseas—Apple’s financial health remains substantial, though repatriation would entail sizable tax liabilities.
The Need for a Breakout Product
Looking ahead, the success of upcoming flagship devices, particularly the iPhone 7, is viewed as critical for Apple's immediate future. Market expectations hinge on the new model being a hit; if it underperforms, further sales declines could follow.