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Chart: Apple is Becoming a One Trick Pony

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Near the end of last year, Apple CEO Tim Cook said that 2015 was the company’s “most successful year ever” with $234 billion of revenue.

The numbers were impressive. About 48 million iPhones were sold in Q4 for a 36% increase in sales over the same quarter in 2014. The company’s solid financial position was underlined by its war chest of $205 billion in cash. Investors were delighted, and the stock ran to $120 per share, which is close to its all-time highs.

The only problem?

Apple’s robust iPhone sales are also the company’s biggest weakness:

Apple is Becoming a One Trick Pony

An over-reliance on iPhone sales is okay if the smartphone category is booming – but financials from Q2 in 2016 provided a wake up call to investors on Apple’s future potential iPhone prospects. Sales for the company’s flagship product declined by 16% from the quarter a year ago, and revenue fell with it by 13%.

Despite this drop, iPhone sales still made up 65% of Apple’s entire revenue for the quarter.

Apple revenue in Q2 2016

It’s now clear to investors that perhaps there is a ceiling for iPhone sales in the future – and even if it isn’t here yet, it raises the urgent question of what Apple’s next big ticket product will be.

One area to look at may be the company’s “Other Products” category, which is growing fast with 29% in quarterly revenue growth year-over-year. Comprised of the Apple Watch, Apple TV, Beats headphones, and other hardware products, could this hold the next golden goose?

Right now, it’s not looking like it, as this entire group of products amounted to only $2.2 billion of revenue in Q2, equal to a measly 4.3% of iPhone sales for the same time period. Even if the “Other Products” category continues to grow at a 30% clip, it will be over 10 years before it makes a significant dent on the income statement relative to the might of the iPhone.

What’s Next?

If the next hit isn’t in Apple’s product offering today, then hopefully it is still behind closed curtains. After all, Tim Cook has hinted that there are plenty of innovative products in store.

The fact that Apple has been working on an electric car has been one of the tech giant’s worst-kept secrets. MacRumors even has an entire microsite dedicated to the potential project. However, not expected to launch until 2020, will the Apple car be early enough for investors to ward off the effect of plateauing iPhone sales?

Apple’s virtual reality game hasn’t been particularly impressive, either. While it has patented a VR headset to work with smartphones and there is mounting evidence that Apple is making a significant bet on VR, the company is still considered to be “behind” leaders such as Facebook’s Oculus Rift or HTC.

That’s because Apple does not have a VR/AR product or an articulated strategy in the sector – not yet, anyways.

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Ranked: Top 10 Single-Day Market Cap Gains

Nvidia broke the record for the largest single-day market cap gains after adding nearly $250B on Feb. 22, 2024.

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The 10 Biggest Single-Day Market Cap Gains

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Since the COVID-19 pandemic, U.S. tech stocks have led in terms of market cap gains, sometimes boosting their valuations by hundreds of billions of dollars in a single day.

In this graphic, we’ve ranked the largest single-day gains ever recorded, using data from Bloomberg.

Top 10 List

The top 10 list includes just 5 companies, and all are based in the U.S.

RankDateCompanySingle-day
Market Cap Gain
(USD billions)
1Feb 22, 2024NVIDIA$247.0
2Feb 2, 2024Meta$196.8
3Nov 10, 2022Apple$190.9
4Feb 4, 2022Amazon$190.8
5May 25, 2023NVIDIA$184.1
6Jan 28, 2022Apple$178.9
7Jul 31, 2020Apple$169.0
8Oct 28, 2022Apple$150.5
9Mar 13, 2020Microsoft$150.4
10Apr 26, 2023Microsoft$148.3

To put these massive gains into context, consider this: As of May 2023, the average market cap of an S&P 500 company was $30.4 billion.

Meta’s $197B Record Didn’t Last Long

On Feb 2. 2024, Meta set a new record for the largest single-day gain after reporting strong quarterly earnings, as well as announcing $50B in share repurchases and its first ever dividend payment.

This record lasted only 20 days, however, as Nvidia’s massive Q4 2024 earnings beat sent it to all-time highs. The firm is now nearing a $2T valuation, firmly placing it among the world’s most valuable corporations.

More on Nvidia’s Earnings…

Nvidia reported $12.3B in net income during Q4 2024, which is 769% higher than the same quarter last year. Revenues are also up 265% from last year, largely driven by demand for its AI chips like the H100 Tensor Core GPU.

Nvidia’s earnings have seemingly shifted the AI craze into another gear, boosting other chip stocks like AMD and Super Micro Computer (SMCI) to double-digit % gains for the day (Feb 22).

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