Apple (APPL) and Nvidia (NVDA) made headlines Monday, with bullish implications for both Club holdings. Here’s a recap of the news and our take on these two towering tech names, along with analysis on the negative knock-on effects for beleaguered chipmaker Qualcomm (QCOM). Apple (APPL) The news: The Wall Street Journal reported Monday that Apple is growing it’s lead in the high-end smartphone market outside the U.S., driven by Gen-Z consumers who “increasingly see the iPhone as a must-have.” For example, Apple’s market share of the 18-to-29-year-old cohort in South Korea has increased to 52% from 44% over the past two years, the Journal report noted, citing a Gallup poll. Younger smartphone users have been drawn to the iPhone for its design, camera and features like AirDrop. Apple’s global share of the smartphone market priced at $800 a phone or more has climbed to 76% as of last year, up from 65% in 2018, according to research firm Canalys. More broadly, the Journal explained, Apple continues to take market share away from South Korea’s Samsung, the world’s largest smartphone maker overall. AAPL 1Y mountain Apple (APPL) one-year performance. The Club take: The iPhone remains Apple’s bread and butter, and Monday’s Wall Street Journal report suggests the tech giant has much more room to run. The iPhone’s growing popularity with Gen Z shows that Apple is continuing to brandish its image as a status symbol with the next generation of buyers. It also demonstrates how Apple is growing its installed base of iPhone users, which should allow the company to ultimately expand its high-margin services revenue. While the premium smartphone market should remain Apple’s core focus, the company also has an opportunity grow its 19% share of the total global smartphone market by drawing new customers into the Apple ecosystem through budget iPhone options like the SE. Once a customer is part of that Apple world, storing years of photos, videos, application purchases and more in…
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