As recently reported by Josh Jambon on his blog about iPad & iPhone sales being down, there’s been a lot of talk in financial circles that Apple’s stock will continue to take a beating, however I believe the sell-off might be going too far.
While many people like to point to the fact that Apple is losing market share to Android and other competitors, it’s important to understand that Apple has built a core following that has resulted in a stickiness to their devices.
The iCloud allows seamless synchronization of all Apple devices (iPad, iPhone, & Mac) as well as the ability to use the millions of apps from iTunes on these devices, it’s easy to see why Apple will continue to hold onto their existing user base. Any time Apple introduces a new product, it’s further incentive for people who are already in the ‘Apple ecosystem’ to make a purchase.
While having a strong grip on a company’s current user base is a good foundation, it’s not enough, but thankfully Apple is growing. They are still considered a fast-growing company with revenue up double-digits which is rare for a stock that has an 11 P/E ratio.
Apple is also looking to innovate; recent news has been leaked that Apple is looking to develop a watch that has smartphone capabilities. While the details are still murky about this new product that’ll most likely be labeled the iWatch, reports are surfacing that discuss the fact that Apple is toying around with awristwatch-like devices made of curved glass”.
The fact that people are treating Apple as a company without a competitive edge facing competitors with better products is a bit laughable. Yes, sales of iPads and iPhones might be slowing down, but the company will continue to grow and will continue to innovate. Also, let’s not forget the fact that once people buy one Apple product, they’re more likely to join the Apple family and buy their other lines of products.
In my opinion, the sell-off of Apple’s stock is ridiculous and with their stock hovering around 475, it might be a good time to buy.