“Last week Carl Icahn wrote an article titled ‘an activist manifesto’ for The Economist in which he argued that Apple Inc. stock is still undervalued,” Larry Darrell reports for Bidness Etc.

“The activist investor (and Chairman of Icahn Enterprises) first announced his view that Apple stock was ‘extremely undervalued’ in a tweet in August 2013,” Darrell reports. “A year down the road, the stock has gained 50%, but Mr. Icahn argues that it’s still cheap.”

“To Carl Icahn, the reason why Apple is so undervalued is rooted in a single misconception. Investors think that Apple is a hardware company, when it is not. Apple, according to Mr. Icahn, sells hardware ecosystems, not hardware,” Darrell reports. “By buying an Apple device, a user becomes part of the Apple ecosystem, where each subsequent device provides greater integration. The end result is an all-encompassing exposure to the Apple ecosystem, due to the company’s ability to innovate and raise the value of the user experience. This makes Apple efficient at retaining customers – a stark contrast to consumer behavior of hardware company customers.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Bill” for the heads up.]