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To: adorno
Apple continues to preserve their margins so even though they are losing market share to competitors who are willing to give their "copy cat" products away, they continue to be way ahead in terms of profit dollars.

It is the profit dollars and the cash on hand that will allow Apple to survive the shakeout that typically occurs when an industry is too busy chasing short-term market share over long-term viability.

128 posted on 08/25/2013 1:15:35 PM PDT by SamAdams76
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To: SamAdams76
Apple continues to preserve their margins so even though they are losing market share

Not true at all.

Apple's margins are lower each passing year, and will continue to go down. That has been apparent in the last few quarterly reports from them.

And, they have also been losing market share, like you said, and that continues to get worse with each month of sales.

Then, there is their stock, where the investors have become increasingly worried about Apple's staying power, and the investors worries are reflected in the much lower market cap which Apple has suffered in the last year. The only uptick they've gotten in the last few months, was from Carl Icahn's statement where he said that Apple's stock was undervalued, but, he didn't bother to explain why he felt that way. Fact is that, other than Icahn, there was nothing new to warrant Apple's uptick in the stock.

Apple is still very profitable, and might be so for another year or two. The only thing I've been saying is that, Apple doesn't have the products and research to make it beyond iPhones and iPads. Once those two products have run their course, Apple is in danger of going back to where they were in the 1990s.
138 posted on 08/25/2013 1:37:30 PM PDT by adorno (Y)
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