I have said this almost 6 months ago while working at Merrill Lynch. This was back when Apple had released rumors of the new iPad and new iPhone 5. The stock had seen a surge and many investors were happy. My guesstimation was a surge to $700 and then a drastic fall that could do some serious damage.
Now, I am not saying I am any type of genie or psychic, but seriously, think about this. Has Apple come up with anything new and crazy in the past, say, two years? Siri you say? Well that technology has existed for a while. So, in short, nothing ground breaking.
Kramer predicts a similar outcome. He sees the next Apple product release to seriously hurt the equity and be a "big loser."
Whether you are an Apple or PC fanatic, what do you see in Apple's future?
Since Steve Job's death in 2011 Apple has struggled to create something innovative and differentiated from its competitors. I believe now that if Apple still wants to maintain itself in the high tech market not only it has to continue ensuring the best quality high-tech products, but also has find a source of creativity similar to the one praised in Mr Jobs, perhaps by letting its users contribute new ideas. Of course, that requires a lot of R&D and its easier said than done.
ReplyDeleteFrom an investment perspective, I believe it is a good time to buy. For atleast a few weeks now it has hung around the 450 range. While it was probably overvalued at $700, today's price is a great deal and worth taking a look at. We have all heard about the apple tv for quite some time now, but it seems it should finally come out at the end of 2013. I think this will be the type of innovative product that will benefit those who stuck with the company through this 40% decline over the last 4 months or so. I know siri wasn't necessarily successful, but consumers shouldn't expect apple to come out with groundbreaking products all the time. Yes, I agree its getting to the point where they need to present something unique, but I think they have til the end of 2013 to do so.
ReplyDeleteI have confidence that the billions of dollars that spends on R&D (more than many companies make period) will yield something good enough to generate consumer demand - whether it's in the form of Apple TV, an iwatch, or a new iphone. The release of this "new" product is only a question of what, and not when (this year).
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