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

To: slacker711 who wrote (165416)	2/5/2014 5:28:11 PM
From: Ryan Bartholomew	Read Replies (3) \| Respond to of 213177

Any number of brands command outrageous premiums. Apple is one of them. The iPhone 4 is a complete rip off based on its specs. I agree with your first and last statements. But your middle one should be corrected to "Apple used to be one of them". The number of Apple customers willing to pay the premium for a device that is on par with much cheaper alternatives is dwindling. A few years ago, it was robust. This is precisely why they are losing market share. Now, if they don't care about growing more slowly than the broader market and they want to focus just on those consumers willing to keep paying the premium (this is what I think they'd be wise to do... it has worked well with their Mac line), then that's one thing. But to claim they will increase sales markedly while maintaining margins (which is required for EPS growth) because nothing has changed flies in the face of the data. Apple just admitted as much with their lowered Q2 forecast. hence the dramatic drop in valuation.