Saturday, January 15, 2011

Common Sense: Why Apple's Best Days May Be Over - WSJ.com

Excerpt from a timely Apple reality check

The Apple-centric world I hypothesized when first recommending Apple shares has largely materialized, at least for me. I tote around my iPad and my MacBook Air, own an iPod and am typing this column at a work station with a large Apple desktop screen. I'm intrigued by Apple TV, and, as I said, hope soon to be brandishing an iPhone.

I see only one problem: I'm not sure what worlds are left for Apple to conquer.

Common Sense: Why Apple's Best Days May Be Over - WSJ.com

2 comments:

Unknown said...

Dear Mr Reily,

It seemed to me that you might be getting nervous after seeing your Apple stock rise dramatically over the past few years.

Are there 'new worlds' for Apple to conquer? That is legitimate question. A better legitimate question might be 'will Apple be able to create new worlds to conquer?'.

Before the iPad came into existence, there is no 'tablet world'. Before ipod came, the MP3 was still in it's embryonic stage. Please note iPod now has at least 70% of the world's MP3 market.

For the iPad - you might ask if it is able to take as much as it's tablet maker like Apple did for the MP3 market.

Since the tablet market is in it's infancy, and Apple has a headscarf, coupled with the great user experience consumers have with the iPads (have U heard IPad users exchanging it for Samsung Galaxy tablets? I have not. But the converse trade-up to iPad I have.)

Lastly, do not forget that Apple is making effort to penetrate the China market. Apple products are considered premium stuff there. The China market is expected to match the US market in size in the future. What do these trends portend for Apple share price?
(Almost all Wall St analysts did not factor in the potential earnings from the China market. )

So be cool and let the price of Apple continue to surf up!

pbokelly said...

Thanks for sharing your perspectives; I agree Apple has done an outstanding job with products and marketing over the last few years, and that it does indeed still have ample room for further growth.