Apple has single digit top line growth. HWP, Dell and GTW and Intel have double digit top line growth...Regarding margins, they are down sequentially, yet the Blue G3 was launched this qtr.
I have a lot of trouble understanding these arguments. You seem to be saying that two things cause AAPL to be valued lower than its peers, but both are wrong:
1. Top-line growth: It's true that, at 9%, Apple isn't seeing double-digit top-line growth (just). But that compares to 6-8% expected for HWP. CPQ is lower than HWP. DELL and INTC are higher, but that growth is heavily priced into their stock. In addition, Apple's 9% revenue growth was through 27% unit growth, which is double the industry's average.
2. Margins: Apple's margins declined sequentially. True, but this is the first sequential decline in what, 6 quarters? And, again, Apple's margins, at 26.2%, are higher than its peers; Dell's most recent margins were 22.4%. The surprising things is not that Apple's margins declined slightly for the first time in ages, but that they have been able to raise them so long even while introducing a low-priced consumer product and increasing market share.
Then you need to look at all the other positives. Apple has great products (contrast all PC makers), great inventory (contrast Compaq), it's not caught in the quagmire of the corporate market (contrast all PC makers), it is tying itself to the Internet rocket through the highest Internet adoption of the industry, it has great leadership, it has great new products in the pipe. What's not to like about this company??? A well-informed investor knows that Apple is an incredible buy right now.
rhet0ric |
