“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.]