To do this, Apple has purchased dozens of companies over the past 20 years, absorbing them for their respective software or hardware developments. Competition: Samsung in particular is a serious threatĪpple has, so far, been able to compete by introducing new and novel products, but there are businesses coming up with new things all the time, most notably Samsung.Īpple has to work hard to maintain its edge and ensure that it stays true to what customers expect from its brand in terms of features, quality, and design or it could lose some of them. If a poor economy limited one of those assets, the company would feel it.Ģ. The majority of Apple’s revenue comes from outside of the United States as does many of its products, components, etc. Economy: Apple is heavily influenced by economic conditions.Īside from the premium its products command and the way that a poor economy or job situation could compound any issue there, the company is also affected by the economy in other places. Here are some of the reasons to be cautious about investing in Apple:ġ. Some are enormous, such as Alphabet and Amazon while others are major players in their own little niche, like Oracle or Pandora. Other companies many phones and computers, other businesses sell services. Software and cloud-based applications are one possibility, as are smartphones and tablets, but where does it end and is there enough room for growth that you will be able to see the type of return on investment want?Īt the same time, you need to keep in mind that these companies are not the only ones competing in the tech space. To generate more revenue, big tech companies need to provide something different by evolving or expanding their offerings. The thing is that tech titan stocks are huge, and the prospect of them growing too much bigger is not as (seemingly) inevitable as it was. In the case of tech titans, you are effectively betting that their products and services will continue to be successful and that their market share or number of users will grow. Exactly how much of a return of investment you expect will depend on your interpretation of the company’s revenue streams and market opportunities. When you buy a share in any stock, you are making a bet that the company will be able to keep generating returns. The Pros and Cons of Investing in Tech Titans Take the time to educate yourself about any stock before you invest, including the big-name ones. With that type of money, buying stock in the future of a tech titan seems smart, but investing in these companies does come with pros and cons. At different times, both of these companies have reached a market capitalization of a trillion dollars – That’s more than the GDP of either Switzerland, Sweden, or Belgium. For iPhone: tip calculator, wealth estimator, and retirement plannerĪutomatically sync your watchlist across MSN Money on the web and your mobile apps for quick access to the stocks you care about.Investing in big-name stocks like Apple or Microsoft may seem like a no-brainer.Get more from your money with financial and budgeting tools such as a mortgage calculator and currency converter. Scan market headlines and access business news from trusted providers. Get quotes, charts and detailed company profiles. Also track currency exchange rates and commodity prices.Īdd your favorite stocks, mutual funds, and ETFs. Track major indices from around the world, including NASDAQ, NYSE, Dow Jones, S&P 500, DAX, FTSE 100, NIKKEI 225 and more. Grow your finances with handy tools and calculators, anytime and anywhere. Know more about your money with the world’s best financial news and data.