Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (128985)	3/23/2012 5:51:48 AM
From: Cogito	3 Recommendations Read Replies (1) \| Respond to of 213173

All this talk about growth in the smartphone market and Apple's ability to capture an increasing share of it ignores the fact that the iPhone isn't Apple's only product line. Yes, you will say, but the iPhone accounts for more than half of Apple's revenue and earnings. And that's true. Five years and a couple of months ago, the iPhone hadn't even been announced, though there were a lot of rumors. Many people said that if Apple did come out with a smartphone, it would be a flop, like the Newton. What did they know about phones that Nokia and Motorola and RIM didn't? Back then, people were saying that Apple's earnings growth couldn't continue because it wasn't possible for the Mac to compete with lower and lower-priced computers from the likes of Dell. As it happens, the Mac has done very well against all those competitors. Michael Dell and Meg Whitman would probably give up a kidney apiece to have Apple's computer sales growth and profit margins. The Macs success since then is a great story, but it has been eclipsed by the spectacular growth of iPhone and iPad. Speaking of which, three years ago, the iPad didn't exist. Now it's generating a significant and increasing share of Apple's profits. Is it possible that Apple has no tricks left up its sleeve? Is that entire creative team tapped out? Can they not think of ways to make better, more compelling iPhones, iPads, Macs, and software? Can they not come up with totally new products that we haven't imagined, and disrupt other markets? Maybe not. But I wouldn't bet against them. All this having been said, I don't disagree with you about being bullish on Apple only through 2014 or so. But I feel that way only because I think it's impossible to predict anything farther out than that. But I must say that I wouldn't have predicted even as recently as 2009 that Apple would be where it is today. I knew they'd be doing well, but they've exceeded even my most bullish predictions.