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RE: Why Apple stock is still a buy

in #investing7 years ago

Hello, one of your regular 'flamers' re Apple here. It now appears that I may be on the right track re our arguments!

As you well know I am a multiple product Apple customer, however I'd say my loyalty only runs as deep as until the next disrupter brings out a superior offering. Which probably covers most of Apple customers...sticky until a company does things better.

That time is nearing.....

As I have outlined in several posts - outside of the iPhone, App Store, iOS and Mac OSX, Apple is really struggling to innovate and remain relevant. They appear to have lost the entrepreneurial nouse that helped them to dominate new markets and seem to be flailing at becoming a leading player in nearly every new market they try to enter.

However perma- bulls on Apple talk about the dominance of iPhone and the ecosystem, which is true. The iPhone owns the smartphone market, especially in terms of revenue and profit.

However that product is now in a mature market and is ripe for disruption from competition. As I have argued Apple is now largely a one product company, relying on the iPhone to be their cash cow while their other product lines either remain stagnant, go backwards or experience only moderate growth.

With today's latest reports re a 50% cut in production of the iPhone X, are Apple's innovation woes starting to roll into iPhone development? Are they becoming out of touch with the market? Have we seen the peak of iPhone sales and will this now be a declining revenue stream?

Let's keep an eye out for next quarter iPhone sales.

https://mashable.com/2018/01/29/apple-to-cut-iphone-x-production-in-half/#6BDDw0cnROqX