“Apple received a rude rebuff from Wall Street Tuesday after rolling out its latest line of mobile phones, but Tim Cook’s loss may turn into a gain for Carl Icahn,” John P. Mello Jr. writes for MacNewsWorld.
“When Apple’s share price tumbled from a little north of US$500 before the announcement of the iPhone 5s and 5c to less than $470 after it, former corporate raider Icahn swooped in and began buying stock,” Mello Jr. writes. “Icahn, recently bested by Michael Dell in a struggle for control of the company Dell founded, told CBNC Wednesday that adding more Apple shares to those already in his portfolio was a ‘no brainer.'”
Mello Jr. writes, “Although Icahn framed his recent buying spree of Apple shares in terms of numbers, he may also be considering the potential of the new iPhone 5s, which seems to have been lost in all the noise about Apple shares falling. That potential will be fired by the 64-bit processor in the 5s. ‘Having a 64-bit operating system on a smartphone without changing the form factor is a phenomenal innovation,’ Trip Chowdhry, managing director for equity research at Global Equities Research, told MacNewsWorld. ‘Developers are hot about this — they’re creating more applications, and more applications means more iPhone sales,’ Chowdhry said. ‘Applications drive hardware sales. That can’t be underestimated,’ he observed. ‘Carl Icahn may be seeing that too, which is why he’s building a position in Apple.'”
Read more in the full article here.
