“Although Apple certainly is not alone in getting hammered in the midst of one of Wall Street’s worst crises ever, the company’s demonstrated resistance to the general economic slowdown should have provided some insulation. But not with a stock as notoriously volatile as AAPL,” David Zeiler reports for The Baltimore Sun.
“Despite the prevailing sense of panic on Wall Street, the AAPL selloff makes little sense. The company has reported exceptional sales and profits throughout the year, and is expected to post more eye-popping numbers for the quarter that ends Sept. 30.
“Consider: Apple had its best March quarter in company history, with revenue growing 43 percent year-over-year to $7.51 billion. Mac sales were up 51 percent year-over-year,” Zeiler reports. “In the June quarter Apple revenue rose 38 percent year-over-year, led by a 41 percent increase in Mac units shipped. The iPod chipped in with a surprising 12 percent increase in sales year-over-yea.”
“More importantly Apple appears likely to sustain its healthy growth with minimal impact from weakening consumer spending. It defies logic, but that’s what the numbers have been telling us,” Zeiler reports.
MacDailyNews Take: Actually, it’s quite logical: Mac users tend to be better educated and make more money than their Windows PC-using counterparts, and are therefore the last to be affected during “tough times,” if they’re affected at all.
“In the current environment, few companies match Apple’s potential to keep raking in money. Throw in Apple’s lack of debt and staggering $21 billion in cash and you wonder why anyone would sell the stock, particularly as it gets cheaper,” Zeiler reports. “But then again most Wall Street muckety-mucks aren’t looking particularly shrewd these days, are they?”
Full article here.