Tuesday, March 12, 2013

AAPL: Apple Launching A Low Priced iPhone Would Be The Ultimate Sell Signal

Apple Launching A Low Priced iPhone Would Be The Ultimate Sell Signal
by Dividend Pros

After delivering blow-out returns to investors in recent years, Apple's (AAPL) stock has had a rough past few months. Apple's supposed decline is mostly attributed to the company's maturing revenue growth due to the saturation at the top end of the smartphone market. Analysts also contend that Apple faces pressure on its extremely healthy gross margins from increased competition with Google's (GOOG) Android powered smartphones and tablets. Moreover, investors also fear that Apple has lost its ability to innovate after the death of the iconic Steve Jobs. All this has generated renewed pressure on CEO Tim Cook to come up with a strategy to revive Apple's growth and speculation is rife that the company is about to launch a low-priced iPhone to grab a share of the huge mid to low-end smartphone market where Android powered devices from Samsung (SSNLF.PK), ZTE (ZTCOF.PK) and Huawei dominate. Many analysts have touted the launch of such a device as inevitable given Apple's recent woes combined with the charm of the potentially huge market. However, in my opinion Apple will not launch a low-priced smartphone, and if it does, I would be the first to sell my long-term holding in this stock. I explain my reasoning below: read more »

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