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Technology Stocks : Apple Inc.
AAPL 259.95-0.4%Jan 14 3:59 PM EST
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To: HerbVic who wrote (155439)6/15/2013 10:04:29 AM
From: Ryan Bartholomew  Read Replies (1) of 213182
 
The ranks of first time smartphone users is the limiting factor.
If this was true and the iPhone had substantially higher retention rates, you'd have to see their sales growing more than the market. But they aren't. That's fact, not opinion.

You focus too much on market share.

Market share is just a way of viewing how one company is faring versus the competition. Apple could certainly do quite well with a small and/or shrinking market share if they can profit from the small segment they capture and focus upon. They do this in the computer arena. But almost two thirds of their profits have come from becoming a huge player in the smartphone market, and the numbers can't add up to profit growth if they give this up.

There is no incentive to buy market share with profits unless the retention of that market share can lead to higher profits which leads to a higher stock price.
I agree. See above for why. I actually think Apple would be an appealing buy around $200 if they take their focus off market share and keep it on retaining the loyal base they've built. But I can't fathom how they'd maintain even half the profits they make now unless they reverse their market share losses, and do so without eroding margins.
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