“Apple is priced like a low-growth stock, and Wall Street analysts have been quite vocal about their disappointment regarding lack of growth prospects for the company,” Andrés Cardenal writes for The Motley Fool. “Although the iPhone [growth] has clearly decelerated, the market seems to be seriously underestimating the iPad and its potential impact over the next years.”
Cardenal writes, “When it comes to the iPad, Apple is following the same successful strategy it used with the iPod; offering a wide variety of choices at different price points and putting long-term growth above short-term profit margins… The iPad Mini is Apple´s way to make sure that it won´t get displaced by the competition due to pricing. I wouldn’t be surprised to see the company reducing the price of the current iPad Mini once a new version is launched, or even developing cheaper versions too. This is about long-term growth, not short-term profits… Considering all the talk about lackluster growth prospects for Apple, it looks like Wall Street may be seriously underestimating the iPad.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]
The market is seriously underestimating Apple.
Wall Street never, ever, overestimates Apple Corporation. Their loss, Apple’s gain.
Golly, you do love to be the first one to post a comment. Look at all those five star ratings you gave yourself (that’s always obvious). You must have a lots of free time on your hands.
Two Marissa Mayer popular articles down below.
Someone at MDN is feeling frisky.
Yes …they are understating the iPad. The iPad that definitely will replace the PC!!!
i would say – iPad already has done that take over.
iPad is the home computer.
portable affordable power
that is rightly suitable for the entire family in any room it travels to in the house.
its great on vacations but for daily travels outside the home iPad mini is best
They underestimated the iPod and iPhone too. Then after a while the stock shoots up. The iPad could produce a spike in share price for the second time around.
If you look at Apple’s unit #s then the iPad is clearly the growth area. Macs are holding steady and outpacing the PC market. iPhones are making modest gains and getting a foothold in emerging markets. Only iPads were up >50% which shows they are still in the expansion phase.
They won’t release a lower-priced iPad mini — just come out with the retina version and continue to sell the non-retina cheaper (a la iPad 2).
there is this other idea… What about putting a phone feature into the iPad mini? Would you really need any other hardware? It would feel out the people that want big screen iPhones and see if there is a broad enough market for it. As an alternative high end variant maybe? Thoughts?
Ya know whatever gets people locked into the ecosystem, makes for a huge winner for Apple in the end. The device is a throw away item in the end.
You wouldn’t need sun screen using a iPad for a phone.
Doesn’t Wall Street view the iPad like any other Apple product as merely a high-priced device soon to be replaced by the hundreds of cheaper Android tablets? I never knew that Wall Street saw the iPad as something special that can’t be replaced. Most of the articles nowadays talk about these $150 to $200 Android tablets which in use are supposedly just as good as an iPad. I know those Kindle tablets were definitely supposed to be better bargains than any iPad due to their lower price and fairly decent quality.
I’ve never known Wall Street to place a premium on ecosystems except for Windows but that was mainly based on high market share. As far as I can tell, Wall Street doesn’t put any value on the iOS ecosystem and considers the lower hardware costs for consumers using Android smartphones the most important aspect to high sales. Wall Street compares products and “just as good or nearly as good” is more than enough. Wall Street figures consumers just aren’t discerning enough to tell the differences between an Apple product and any electronic produce running Android.
“wide variety of choices at different price points”
Some one clearly doesn’t understand Apple. That is just opposite what Apple is about.