My Once-A-Year Article On Apple
by Anthony Welch
About a year ago, I wrote an article about Apple (AAPL) joining the $500 Billion market cap club discussing where the previous members were at the time. A year ago, Apple could do no wrong and many pundits were assuring us that the stock would hit a trillion in market cap in no time. The point of the article was we have seen this movie before. The world is a competitive place and when a company is hitting on all cylinders with its innovative products; their competitors take notice and make adjustments. Today, Apple stock has dropped $200 a share and appears to be on the ropes because competitors such as Samsung (SSNLF.PK) have come out with new innovations of their own. Many are at lower price points. Apple could be forced to reduce profit margins in order to maintain and grow market share. Additionally, Apple products were previously reserved for only the coolest and hippest of our population. Now, the unthinkable has happened - many parents and even grandparents now own one or more of Apple's products. The hip first adopters now must now look outside the Apple family tree for their cool. Finally, those that were whipped into a feeding frenzy and purchased Apple stock at a much higher price a year ago are finding this Apple to be a sour one indeed. On its path to a trillion, Apple must first battle the immense overhead resistance of sellers that just want to get their original investment back. read more »
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