In the beginning, there was the Macintosh. Then came the iPod, iPhone, iPad, Apple Watch, and everything in between.
Apple (AAPL) has managed to find products that increase revenue and preserve some of the fattest profit margins a company can claim.
To complement the product line, the Cupertino, Calif., group led by Tim Cook began to build an empire in services as well: AppleOne, AppleCare Technical Support, loans in partnership with Citizens One Personal Loans (CFG), and the Apple Card with Goldman Sachs (GS)
All these initiatives have proved lucrative. And now Apple seems to have found a new golden opportunity. The company is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, Bloomberg reports, citing anonymous sources.
The service will enable users to subscribe to hardware, rather than just digital services. Apple didn't immediately respond to a request for comment.
The project is still in development, the report cautioned. But such a service would be a real revolution at Apple, which has always sold its hardware products at cash prices or in installments via the partnership with Citizens One.
And almost certainly it would enable Apple to pull in consumers who consider its products too expensive and are reluctant to lay out large sums for a smartphone or a laptop. The base price of the iPhone SE, Apple's low-cost smartphone, is $429.
Apple is planning to let customers subscribe to hardware with the same Apple ID and App Store account they use to buy apps and subscribe to services, Bloomberg said.
The program would differ from an installment program in that the monthly charge wouldn’t be the price of the device split across 12 or 24 months. Rather, it would be a yet-to-be-determined monthly fee that depends on which device the user chooses.
The company has also discussed enabling users of the program to swap out their devices for new models when fresh hardware comes out. Apple historically releases new versions of its major devices, including the iPhone, iPad, and Apple Watch, once a year.
Apple Could Cut iPhone, AirPod Production: Report
Apple shares closed higher Monday for the 10th consecutive trading session of gains. That's the longest winning streak for the stock since October of 2010, reports MarchWatch, citing Dow Jones Market Data.
Earlier, the stock had dipped after a report from the Nikkei business newspaper suggested the world's biggest tech company is planning to cut some of its iPhone production rates.
Slowing demand, surging inflation, and supply chain disruptions have combined to trigger a potential 20% cut in iPhone SE production, Nikkei reported, a level that translates to between 2 million and 3 million units next quarter.
Cuts in the low-cost 5G enabled smartphone, which was unveiled only weeks ago, will also be paired with a 10 million unit reduction in AirPod production and trimming of units for the new iPhone 13 suite of handsets, Nikkei reported.
Apple told investors in late January that, "given the continued uncertainty around the world in the near term, we are not providing revenue guidance" but said March quarter sales would likely decelerate from their December period growth rate of 11.2%.
TheStreet Quant Ratings rates Apple as a Buy with a rating score of A.
Here's a breakdown list of more technology stocks to watch right now based on their performance over the past week:
Facebook promotes itself as a way to bring people together and make the world a better place. But Facebook, now known as Meta Platforms (MVRS), continues to struggle to have a clear policy on content moderation and more particularly those relating to calls for violence. A week after being heavily criticized for allowing Ukrainians and nationals of certain European countries to share messages calling for the assassination of Russian President Vladimir Putin, the social media giant is again being singled out.
"Facebook approves adverts containing hate speech inciting violence and genocide against the Rohingya," the rights group Global Witness accused Facebook of this week. The organization says it has tested the platform by submitting for approval eight paid ads to be broadcast on Facebook. Each of these commercials contained hate language towards the Rohingya, a minority ethnic group who predominantly follow Islam and reside in Myanmar. To almost everyone's surprise, all eight hate ads were approved by Facebook.
TheStreet Quant Ratings rates Meta Platforms (formerly Facebook) as a Buy with a rating score of B+.
Palo Alto Networks
Outside of energy and defense names, not many stocks are hitting 52-week highs. That’s especially true in technology. But at least one stock has been doing it. Palo Alto Networks (PANW) has been in strong demand by investors, hitting news highs in four out of five sessions last week. In the past, it’s been everyone from tech to retail that has felt the effect of cybercrime. With geopolitical issues heating up, cyberwarfare is now becoming a thing to worry about as well. When it comes to Palo Alto Networks, investors are wondering two things: How high can it go and where do they buy the dip?
TheStreet Quant Ratings rates Palo Alto Networks as a Sell with a rating score of D.
Uber
Uber Technologies (UBER) shares surged last week after reaching a deal with ride-hailing group Curb to list all New York City taxis on the Uber app. The strategic partnership, which will eventually spread nationwide over the coming months, will first launch in New York City and allow Yellow Cab drivers to access trip requests from Uber users, as well as those from the existing Curb app, as well as the app made by Creative Mobile Technologies. Uber users will be able to book rides through the app with Curb-connected taxi drivers, the companies said.
The New York City Taxi & Limousine Commission had just under 175,000 licensed drivers in operation last year, according to its most recent annual report, with around 100,000 vehicles licensed to serve public demand, including 13,587 Yellow Medallion Taxis authorized to accept street hails.
TheStreet Quant Ratings rates Uber Technologies as a Sell with a rating score of D.
Amazon
With the arrival of thousands of Ukrainian refugees expected, U.S. businesses are beginning to commit to providing support and resources for these people in need. Giant tech company Amazon (AMZN) stepped up last week with its pledge to provide for the immediate needs and longer-term support for people fleeing Ukraine.
Amazon's first big initiative is the launch of its Welcome Door program to offer refugee and humanitarian-based immigrant employees additional resources and support, including reimbursement for Employment Authorization Document fees, which begins next month. The program will be expanded globally by the end of the year.
Under the Welcome Door program, Amazon's refugee and humanitarian-based immigrant employees will gain access to new resources including reimbursement of Employment Authorization Document fees that cost about $500 every other year, a new Citizen Assistance Portal that will fully support U.S. citizenship applications for all eligible employees, ongoing communications that highlight policy changes that may impact an employee's immigration status, free legal resources to help navigate immigration-related questions and the ability to connect with immigration experts, access to skills training benefits including free college tuition and English-as-a-Second-Language proficiency through Amazon's Career Choice program, and customized mentorship.
TheStreet Quant Ratings rates Amazon as a Buy with a rating score of B-.
Microsoft
Tech giant Microsoft (MSFT) said Friday that it will not interfere with the employees of Activision Blizzard (ATVI), a company it is buying for $69 billion, attempting to form a union — a declaration which arrives as the game maker is hit with yet another sexual harassment lawsuit. With the company roiled by nearly two years of sexual assault scandals and a new lawsuit, it is hardly surprising that workers at video game company Activision Blizzard are looking to form a union.
That is a process that a spokesperson just promised Microsoft will not try to subvert. In the summer of 2020, California's Department of Fair Employment and Housing first accused Activision Blizzard of having a "frat boy" work culture, in which women would receive unwanted sexual advances and hear demeaning comments about their bodies.
TheStreet Quant Ratings rates Microsoft as a Hold with a rating score of C+.
Netflix
If coffee and beverage giant Starbucks (SBUX) emails you about one of your all-time favorite Netflix (NFLX) shows and then you discover that the streaming giant and Starbucks have a book club together, things could feel a little strange, at first. Streaming service Netflix, which has made binge-viewing mainstream, is part of a social series called "But Have You Read the Book?" in partnership with Starbucks. In October 2021, Starbucks and Netflix first announced this exclusive alliance as part of the Netflix Book Club, "a one-of-a-kind club for literary and entertainment lovers to hear about their new favorite books, films, and series adaptations first," the two companies had said.
Netflix says its version of a literary circle, specifically seeks to provide customers with the "depth" they’ve been looking for. "We’re choosing books and stories that bring the heat, the diversity, the romance, the drama, and the learnings," according to its official website. Netflix shows like "Orange Is The New Black," "Virgin River," "Sweet Magnolias," "Unorthodox," and "Firefly Lane" among others are all book adaptations. But only "Orange Is The New Black" and "Bridgerton" are among the platform's breakout series in this lineup.
TheStreet Quant Ratings rates Netflix as a Hold with a rating score of C.
Okta
Okta Inc. (OKTA) shares rebounded Monday following declines last week, after the tech group, which manages network access for thousands of U.S. companies, began investigating reports of an illegal data breach. Okta was alerted to the potential breach when hackers, allegedly representing a group called LAPSUS$, posted photographs of what was claimed to be the San Francisco-based group's internal technology on the Telegram channel. CEO Todd McKinnon said the photos could be linked to an attempted hack in January that has since been contained.
"Based on our investigation to date, there is no evidence of ongoing malicious activity beyond the activity detected in January," CEO Todd McKinnon said through his verified Twitter account. Cybersecurity risk has intensified in recent days following comments from President Joe Biden warning of a potential attack from Russian hackers in reprisal for western sanctions linked to its war on Ukraine.
TheStreet Quant Ratings rates Okta as a Sell with a rating score of D+.
