“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.]