In this video, I will talk about why I believe Apple (AAPL 2.14%) is always a buy and explain the famous Apple ecosystem and what makes it so special and lucrative. I'll also touch on the Epic Games v. Apple trial.
We've heard this term before, and it is being used more and more. Just think about Square's ecosystem, for example (Seller side, Cash App, and Tidal). But Apple, that's a whole other level. Think of it like building a puzzle. Each piece completes the puzzle more and more. The iPhone was launched in 2007 along with the iPod Touch, and that was the first big piece of the puzzle. Then came the iPad, Apple Watch, Airpods, and the services.
Each product can be used on its own and work perfectly. But if you look further you see that each product Apple releases is meant to do a specific thing and make that action easier for the user. This has been viewed as a positive and a negative. For those who buy everything Apple, everything is synced and there's no hassle.
But what about the people who do not want to buy everything Apple? They're stuck in what's been called "the walled garden." Everything is great inside the walls, but it's very difficult to get out.
Apple is still growing, believe it or not, even at a $2.11 trillion dollar valuation. The company is very focused on VR/AR, and mixed reality headsets will come out in 2022, with Apple Glasses to follow in 2025. The headset will come with a hefty price tag of $3,000, which is almost 10 times more expensive than Facebook's Oculus Quest 2.
There are also rumors of an Apple car, and it wouldn't surprise me if that's another big piece of the puzzle. But as of now, these are just rumors that date back to 2014 when Project Titan was announced.
Epic Games v. Apple
Epic Games is suing Apple over the way it runs the App Store. It says the store is a monopoly and charges high fees on games like Fortnite. Apple makes Epic (and most App Store users) pay a 30% commission on in-app payments. Apple's dominance has already led to an antitrust probe by the U.S. Justice Department into the App Store's fees and policies. The judge may take weeks, if not months, to make a ruling. But even if Epic doesn't win, this might set a precedent for how future cases are decided.
*Stock prices used were the closing prices of May 27, 2021. The video was published on May 27, 2021.