Buy and Sell Signals, and Other Market Perspectives Message Board

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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives

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Jan 16 4:00 PM EST

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To: GROUND ZERO™ who wrote (42216)	12/20/2012 1:09:20 PM
From: Keith Feral	Read Replies (1) of 221998

I'm glad that I dumped out of Apple yesterday. Stock is neither cheap nor expensive. 10% EPS growth for this year wih 10 PE, the biggest problem is declining margins as Apple cuts prices on all their iPhones and iPads this quarter. It's good they are responding to the competitive reality in the for both products, but lower prices will deflate the impact of higher sales. Apple really is just becoming more of a mature growth stock. I see a strong correlation between the ASP of their iOS devices and the share price. With the iPad now selling for $400 and iPhones ranging from $450 to $650, I think the overall price of the iPhone is probably going to be under $600 this year. Next year, that dips another $100 as the price of the iPhone 5 is shaved another $100 to $550. Apple needs incredible growth to offset these price adjustments, and they just announced another $50 discount on their iPhones for WMT for all their iPhones.

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