Posted on 02/20/2014 8:54:57 AM PST by SeekAndFind
Apple is the new Microsoft, says Barclays analyst Ben Reitzes. He downgraded the stock from "overweight" to "equalweight" (which is like going from buy to hold). He sticks with his $570 price target.
He believes the stock will be stuck in a tight trading range for the next year or so.
"Frankly, we just couldn’t quite bring ourselves to use smart watches or TVs as reasons to raise numbers – nor were we fully convinced that these products could move the needle like new categories did in the old days," says Reitzes. "As a result, we believe it is time to step aside, given a maturing smart phone market."
He says he's excited as a consumer for what Apple has in store, but as an investor, he doesn't see it doing much.
"We believe Apple’s story is all about iPhones and 'new categories' seem to be designed to make the iPhone more useful – but don’t necessarily re-accelerate growth in the iPhone category to sustainable double-digit levels."
He delivers a final dagger, saying, "We look at a valuation analogy vs. Microsoft from 2000 to about 2010 and see no precedent that large-size tech companies simply start to broadly outperform again after a tough year or two if the law of large numbers is catching up to them and margins have peaked."
(Excerpt) Read more at businessinsider.com ...
I don’t understand your riddle.
It's not a riddle.
Maybe it should be then. ‘Cause I have no idea what you are on about.
As you wish.
They owned the smartphone market for a while. But that was back when dumb phones ruled so their total market share did not reflect their true technological dominance.
The have missed several large moves in the market over the last several years, and they are now reacting to markets rather than creating them.
I was surprised by the popularity of the iPad so I could be wrong about wearables and an Apple branded TV but I don’t se either as an area that can replace previous growth in phone sales.
what happens to Apple when other
iPhone like devices sell for ten bucks?
how much better can they make the display.
the current display is 300 (or so) pixels per inch.
how much is enough/
Apple survived their mistake by creating a new category of product - a brand new market.
They came out with a product excellent value discipline that they’ve been consistent with since they introduced the Mac.
Problem with that value discipline is that you have to keep creating new categories or justifying the price difference in your product. Android shattered the category, like most operationally efficient value discipline type strategies do.
Back in 2003 when Apple stock was around $10 a share I did look at it but decided that Apple had less then 10% of the computer market so I bought Gateway computer stock instead and after several years lost about $30,000....
If I had bought Apple stock (5,000 shares) with the money I had at that time I would have made at it’s peak about $3.5 million!
I now own Ford stock and tripled my money but passed up TRW when it was at the same price. I could have made 5 times more..... they make car parts among other things.
So if you guys want to know what stock to buy I suggest picking my rejects. You will become rich!
LOL.
I thought about buying Microsoft when Windows was introduced, running more than one DOS program was the future baby! Never got around to it.
I thought about picking up Apple shares when Microsoft bailed them out just because it was obvious that Microsoft had an interest in keeping them afloat, never got around to it.
When Bitcoin came out I thought about buying a couple hundred because is was the going to be the way you paid for small stuff on the internet. Never got around to it.
We ought to form a joint venture.
It may be the new MS, but even with that, it will still outlast and run better anything MS puts up.
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