Apple today is trading at $343.9; it is trading higher with $10.53 as investors assessed the iPhone maker's latest move to integrate more of its operations
Apple today is trading at $343.9; it is trading higher with $10.53 as investors assessed the iPhone maker's latest move to integrate more of its operations under its own roof. Apple is looking at building its own semiconductor processor chips to go into its Mac computer line, cutting out processor maker Intel in the process. Apple has learned a lot from its experience in dealing with its supply chain, especially given disruptions related to the coronavirus pandemic. The benefits of having more key components manufactured in-house are greater than ever when you can't necessarily rely on partners to be able to deliver during tough times. Moreover, avoiding the markups that providers like Intel charge on chips can be a big boost to the bottom line, as one stock analyst estimates that Apple could see its gross margin on Macs soar by five full percentage points.
In addition, Apple has seen the pandemic boost its overall strategy of emphasizing services as a larger part of its business. Sales from Apple's App Store have risen dramatically during the first part of the current quarter, and that growth appears to be accelerating despite the fact that more people are starting to return to work after having followed stay-at-home orders over the past few months. With today's gains, Apple's market capitalization was right around $1.5 trillion. That leaves a lot of gains left to come before crossing the $2 trillion line, but many are choosing the electronic device giant as the natural pick to reach that milestone first.