Apple’s success story is only just beginning

“Whether you’re bullish or bearish on Apple, it is hard to deny the company’s most effective tool to driving its success: its ecosystem,” NYC Trader writes for Seeking Alpha. “Apple’s carefully crafted ecosystem is probably its most undervalued asset and a new future product will without a doubt be built around the same ecosystem that has made every one of its current products successful.”

“Apple’s revolutionary story, as we know it today, began not at the Mac or the iPod, but at its ecosystem, which is still in its ‘child’ stage,” NYC Trader writes. “A gifted child I might add.”

NYC Trader writes, “The market opportunity for expanding that ecosystem globally is quite enormous. Because Apple has extremely strong brand recognition, much cash, and loyal consumers, I believe other companies will be willing to “play along” by joining Apple’s ecosystem. That will create billions of dollars of cash flows in the longer term. The stock trades at a deep discount to comparables as is evident above. This should, in my opinion, correct in the future. While I would not recommend timing Apple’s stock for quick surging bounce (through options, for example) for the near term, I do believe that downside risk is not nearly what it is for companies like Amazon, Google, and Facebook. This in my opinion is a longer-term, even greater success story.”

Much more in the full article here.

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

24 Comments

  1. Oh No, not the dreaded “eco-system” label. Isn’t this what doomed Micro$haft, in that each and every thing they did had to be compatible with their legacy and “eco-system” of programs and hardware et al? Their windows success and having to have everything tied to it has led to their rapid demise and loss of flexibility.

  2. So now MDN is quoting anonymous bloggers from that shithook site Seeking Alfi. I do not give a shit what the world famous ‘NYC Trader’ has to say. Why not just quote Bozo the fucking clown instead.

    1. It is difficult to give you credibility when your postings are so full of filthy language. You can say the same thing without it and get your meaning across. With a moniker like “x” your postings are like XXX. Could you show respect to your fellow posters and clean it up please.

  3. Yes, the Apple ecosystem is the key and how they tie together is done using “The Cloud”. Oh, the Magical “Cloud”, you would think these analysts would understand the need for server farms, you know the Magical “Cloud”. It takes several billion dollar server farms seeded all around the world to make the growing Magical “Cloud” work. Oh! Apple has talked about 5 of their server farms so far. DON’T GO LOOKING ALL AROUND THE WORLD FOR THE OTHERS NOW! Keep it a secret please! Idiots! How many does Samsung have so far?

  4. Plus, not a single “analyst” talks about the advantages Apple typically gains by being first to market with technology upgrades to existing products with new model releases.

    We get ‘surprises’ with each new release.

  5. So many seeking instant gratification and don’t understand that great companies always look for long term choices that result in quality products. Unlike Samsung.

  6. Ecosystems alone are not enough; Technology alone are not enough; Usability, Quality, Reliability alone are not enough; Customer Satisfaction and Loyalty is getting there . . . But to pull all of these together and maintain that each at a high level – That is what Apples does so well.

    Good is the enemy of Best! Apple doesn’t settle for “good,” and this is also what defines Apple!

  7. I still say there is nothing in Apple’s valuation that indicates any short- or long-term company success. In fact, as Apple’s ecosystem has grown the P/E has shrunken greatly which indicates quite the opposite (you might say heading for failure). Even as Microsoft and the Windows platform trends somewhat towards irrelevance it’s P/E has remained far stronger than Apple’s over the last five years (2007-2012). As a note, Microsoft’s P/E has increased over the last year while Apple’s P/E plummeted. It’s that lack of investor confidence thing again.

    I’m pointing out these things as pure facts and although it doesn’t make much sense to me it’s how things actually are. I use Wolfram Alpha to track this data so I’m not making this stuff up. However, my conclusions may be wrong from the data, but that’s how it looks to me.

    I would say it’s rather obvious that only a small number of people have any belief in Apple’s strengths and most consider them weaknesses. And no, I can’t explain how Apple is taking most of the industry profits and yet the company is perceived doomed and the share price is sputtering. I do realize there are plenty of contradictions in everything surrounding Apple that can’t be readily explained.

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