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


To: pyslent who wrote (165492)2/6/2014 3:06:07 PM
From: Ryan Bartholomew  Read Replies (2) | Respond to of 213177
 
Can you justify this projection? Seems to me that Apple could generate about $40/sh/yr using this strategy. After all, they did it in 2013 and will probably do it in 2014. The strategy you advocate is what Apple's been doing since day 1, focusing on the costumer base willing to pay their premium. So fine, that customer base isn't growing anymore, but nor is it shrinking.
Apple grew share immensely a few years ago... they dominated smartphones and tablets for a while. To maintain $40/share, they'd have to lock in both the sales levels and the margins they have now. If they keep pricing where it is, I don't think they'll be able to maintain these sales levels for more than another year. It's just my guess, based primarily upon what the competition is doing.

For $20/share, I'm assuming they shrink their iPhone/iPad sales to whatever would equate to something like 15% global market share, stabilize margins, and focus on serving their loyal fans well. Just like they do with Macs.