Would you pay more to buy IBM / Berkshire Hathaway or Apple? Who's going to be around tomorrow?
Iphone is pretty amazing, but competitors have begun to catch up. Have you seen the copy cat phones out there? Pretty much does the same thing for 50 bucks when you're on contract for 2 years. The market cap is closing in on MSFT. At one point, it might have exceeded it. The cell phone industry is hard to monopolize, not like the Windows OS / Office. When a better mouse trap is built, this will become another Nokia or Palm story.
B/w Berkie vs Apple, I definitely will pay more to buy Berkie than Apple. Just a thought.
As soon as AAPL adds 33% of the country to its client base by adding Verizon, it will look better.
The only monopoly happening is that AAPL seems to be the only one able to charge 500$ for the "$50 phone".
By the way, the knockoffs are $50, because nobody wants them.
That is like saying "Hey, who would continue to pay 300 for an iPod player when I can get this cheap knockoff for 30$? Sell AAPL! "
Welcome to 9 years ago.
And today, people continue to pay money for AAPL usability.
AAPL keeps tweaking products and adding features and customers keep buying new versions.
That last sentence is the only thing you need to know.
Go buy your blackberry. It's easy. See if it is easier than
finding a 600$ overpriced iPad to buy.
Have you heard anything from BRK, IBM, Sony, Sprint, Toyota, RIMM, GOOG, YHOO, ATT, VZ, Dell, H-P in the past three weeks except bad news.
It's been AAPL 24/7 the past three weeks.
It's a good momentum play, but at some point, you have to question yourself, "Is Apple really worth more than Walmart? Does it make sense that it comes second to Exxon Mobil in terms of Market Cap?"
Currently, Apple's market cap has reached 246 bn. As the market cap gets ever bigger, the increase in sales revenue is going to have less and less of an impact. Right now, Apples sales have reached around 37 bn. To put this in perspective, MSFT, with its monopoly power, has only achieved sales of in the upper 50s. If Apple grows the top line revenue for around 50%, it will be in line with MSFT's revenue. How likely is that going to happen?
Overall, I'm bullish on the Iphone, and bearish on the IPAD. Everyone needs a phone, and the market is huge. However, not everyone needs an IPAD. The Ipad is like Amazon's reader or Barnes & Nobles' nook. The market is much smaller than cell phones. I guess the IPAD targets people who like to read on the train, and that's not a big market. Any assumption to group the Ipad's sales along the same numbers as the Iphone is unrealistic.
Lastly, check out the insider transactions. They've been dumping shares like they've eaten 10 Taco Supremes and ready to unload the goods. Maybe you guys should do the same. It's not good to hold it in too long.