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  • dfcjxd3 dfcjxd3 Oct 6, 2011 10:33 PM Flag

    Real Question

    I don't know. That's why I'm asking a question. I'm seeing a P/E of 15 when many tech companies are in single digits and I'm seeing Apple reaching $400 billion market valuation while the world economy is on a stand by.

    On the other hand, as consumer I love Apple products and see a great growth potential. As an investor, I wonder if June 2012 release of iPhone 5 and projected sales of 4s on Sprint are not too optimistic. I'm also concerned about Apple roll-out in India and China. Just trying to have reasonable expectations.

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    • Alright Buster, keep on laughing, but you brought it upon yourself.
      So, many tech cos. have single-digit P-E? Does that mean many tech cos. have double digit P-E's? Some are even dam(sic)-near triple digits. Do any of these tech cos. have $70/share cash/marketable securities; no debt like AAPL? So why do you bounce AAPL's viability off these tech. cos. without normalizing the data first? If the valuation is correct, it doesn't matter if the market cap is $4,000 or $4 billion, if it's correct, it's correct. What makes it correct is how the company in question's prospects for growth stack up against the competition's prospects for growth, and hence investors' willingness to pay a certain amount for the one stock vs. the other(s).

      4S on Sprint too optimistic? They have a contractual agreement: 30 million units. And I would guess that if need be, AAPL would allow Sprint to sub i-5's for any undelivered i-4S's once the 5 becomes available. One thing's for certain: Sprint either buys 30 million iPhone-x or AAPL's in the cell phone carrier biz.

      You might have a legitimate concern about India, but China? Forget it! Apple will have phones at all the price points necessary to take over the smartphone market there.

 
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