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


To: Bill from Wisconsin who wrote (189988)4/27/2016 10:45:43 AM
From: JakeStraw1 Recommendation

Recommended By
Kip S

  Respond to of 213182
 
"making it up on volume" won't solve Apple's ills. It will add to them.
Not necessarily and it it locks new customers into their ecosystem. Think selling razors and razor blades...

They can't grow units forever. It was inevitable that they would at some point slow growth and show occasional declines in units.
Exactly! Apple needs something to get their mojo back.

AAPL is making money. they need a future business.
I totally agree, which is why they either have to innovate, or use their cash hoard to acquire a new revenue stream (i.e. through acquisition) and lessen their reliance on iPhone sales.



To: Bill from Wisconsin who wrote (189988)4/27/2016 11:42:07 AM
From: AJ Muckenfus  Respond to of 213182
 
You nailed it. Phones are headed to where the auto industry is now. Some new products seem to be important to growth.



To: Bill from Wisconsin who wrote (189988)4/27/2016 4:57:43 PM
From: MGV1 Recommendation

Recommended By
Bill from Wisconsin

  Respond to of 213182
 
They need future businesses, including ecosystem services that are advancing at a more robust development pace.



To: Bill from Wisconsin who wrote (189988)4/28/2016 3:54:19 AM
From: Ryan Bartholomew  Read Replies (1) | Respond to of 213182
 
Lowering prices would be the beginning of the end ... They can't grow units forever. It was inevitible that they would at some point slow growth and show occasional declines in units.
Fair point. The question is: If they maintain (or even raise) prices, given that both sales and market share are declining now, this will likely lead to declining profits as well. With declining profits, while they are still massive in absolute terms, where does that put the stock when fairly valued? Until recent months, profit growth had been priced into the market value. If profits contract over the coming year, what's a fair price?