The bear case against Apple; what could go wrong

Invisible Shield for Apple iPhone 4!“Bernstein Research’s Toni Sacconaghi, an analyst with a long history of bearish Apple predictions chose an odd day to make what he calls the ‘bear case [for] a darling among buyside investors,'” Philip Elmer-DeWitt reports for Fortune. “Apple was trading at record highs for the third day in a row Monday when Sacconaghi offered his clients these bullet points:”

• Apple’s market cap is too large for it to outperform, and its image has migrated from underdog to Silicon Valley bully, which will increasingly pit competitors against it.
• Increased regulatory scrutiny threatens to undermine Apple’s powerful iOS ecosystem.
• Sustained growth in iPhones will inevitably lead to margin pressure.
• Near-term expectations for iPhone and iPad units are getting heady, risking disappointment.
• Apple insistence on retaining cash points to a risk of the company squandering it on a flawed acquisition.

Elmer-Dewitt reports, “In the end, the analyst seems unconvinced by his own analysis.”

Read more in the full article here.

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

33 Comments

  1. The only bear case that can be made against Apple is that a meteor has been sighted, headed for earth, and it’s projected impact point is Apple headquarters in Cupertino.

  2. Some areas are starting to report modest turnarounds in the economy; we may have possibly hit bottom and are starting a slow climb out of the hole.

  3. Somebody has to look at the negatives, people. It can’t all be bright skies and happy faces.

    The overwhelming majority of outlooks on Apple are sunny and optimistic. This is the case against that optimism. And as we can see, it’s a very weak one.

  4. Apple is selling everything they can get made and product is back ordered by more than a month and this idiot thinks Apple is going to have to cut profits?

    I vote Toni Sacconaghi to be this month’s village idiot!

  5. Now apples $50b is a liability. bahaha. how much of a tard came up with that idea? This is the second dummy to toss that around.. behind the bam investor douche. I guess we can expect to see a parade of idiots start to copy cat that drivel as a talking point in future fud campaigns.. only to become more and more dire as their war chest grows more and more. lolz.

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