Dallas, Texas 09/18/2013 (Financialstrend) – AAPL has been heading south after reaching a pinnacle in September 2012. The company’s investors are concerned that it might encounter difficulty with maintaining momentum, especially since the company is a very large one. Over the last 5 years, the company has seen an average rise of 44.8% in sales. If the company is able to maintain the same pace, in 5 years time, its sales would break through the $1 trillion mark.
The power of big
Though a new product might not have the potential to actually make or break the company’s fortunes, the new pipeline of iPhones might just bode well for its suppliers. Even if Apple’s sales do not reach those levels that have been mentioned above, the smaller companies will definitely benefit from the deliveries.
The company’s suppliers are much smaller than the technology giant, but companies like Flextronics International Ltd. (NASDAQ:FLEX) are large in their own right. No matter how many performance and profitability barriers Apple breaks, it will still need allies that are financially strong and these can rarely ever be the small fry in the market. Flextronics International Ltd. (NASDAQ:FLEX) offers the company a range of engineering services and also provides supply-chain management.
The company also has clients such as Hewlett-Packard Company, LG and Google Motorola Mobility. In the past, it has not had impressive steady-growth in earnings, but it has been profitable in every year. Analysts expect that earnings will grow at an average-rate of 12% a year over a period of five years. Taking this into account, Flextronics International Ltd. (NASDAQ:FLEX) is definitely undervalued.
In Tuesday’s trading, Flextronics International Ltd. (NASDAQ:FLEX) dipped by 0.97%. The opening price of the shares was $9.32 which touched an intraday high of $9.34 and closed at $9.91. Approximately 11.03 million shares were bought and sold on Tuesday.