“At a time when much media negativity surrounds Apple stock, it is important to remember that most of the media was expressing positive views on Apple stock when it was $700,” Nigam Arora writes for MarketWatch. “Sentiment can change quickly. One potential development on the horizon that may change said sentiment is a new look at wearable gadgets.”
“Steve Jobs totally transformed smartphones when he introduced the first iPhone,” Arora writes. “Jobs’ genius was integrating the available technology in an elegant user-friendly device. The iPhone not only transformed smartphones, it was the main force behind Apple becoming, at least at one time, the largest company in the world by market capitalization. About 70% of Apple’s profits in recent years have come from iPhones.”
“The market for wearable gadgets today is similar to the market for smartphones before the introduction of iPhone,” Arora writes. “There are many wearable gadgets available today, but none of them have caught on. Apple’s archrival Google has released Google Glass. Google Glass is worn like a regular pair of glasses, but comes with an optical head-mount display. However, it is expensive, and reviews so far in terms of comfort and looks have been mixed. This is not much different than smartphones prior to iPhone.”
Arora writes, “Tim Cook seems to be on the right track. ‘There are lots of gadgets in this space right now, but there’s nothing great out there,’ Cook said at D11 conference. ‘But none of them are going to convince a kid that hasn’t worn glasses or a band to wear one. There are a lot of problems to solve in this space. It’s ripe for exploration. I think there will be tons of companies playing in this space.'”
Read more in the full article here.
I love how Cook is leading this company – Long live Apple and for what Apple stands for.
Only those who are clever and long-sighted understand the value of Apple .
I think those investors who suffers the loss now will be paid back . That moment will be touching .
It started MUCH earlier. The name “iPod” was selected (instead of a more sensible name that related to playing music), because I think Steve Jobs envisioned the iPod evolving into Apple’s line of wearable computers.
An “iPhone” is limited to being a communications device. An “iPad” is limited to being a tablet computer. But an “iPod” could become just about ANYTHING.
People in less than a year will regret how stupid they were now to believe Investing on Google is better than Apple .
That’s just your belief and has nothing to do with reality. Even at this time Apple is beating Google at almost every financial metric there is and yet Google’s share price is more than 2X Apple’s share price and has a P/E ratio of almost 3X Apple’s P/E ratio. There’s nothing beside hedge funds’ preference for Google that should put Google’s share price as high as it is. Apple is on every investor’s shit-list for reasons that really aren’t very sound.
This is a stock market run by crooks and cheats. Take one look at ISRG today and you’ll understand. That stock should never have been allowed to run up as high as it did and the words “investor’s fears” had never been uttered. But with Apple, “investor’s fears” are uttered on a daily basis holding the stock in such an extremely narrow range.
So that’s why you can never be sure about what Apple’s real worth is. In a stock market that is controlled by a handful of people, it doesn’t matter how much more money Apple makes and the share price won’t necessarily follow suit. The hedge funds are artificially inflating and deflating share prices to their own choosing and there doesn’t seem to be anything that can change that.
+1 Very well said. The stock market in a nutshell.
Good posting but I want to respond to your comment that, “The hedge funds are artificially inflating and deflating share prices to their own choosing and there doesn’t seem to be anything that can change that.”
There is one thing that could change that: Take the market power from the hands of the institutional holders. However, most people are uncomfortable making their own investment decisions and thus give these fraud artists enormous power through aggregation of those individuals’ handed-over financial resources. In fact, those institutions now have enough concentrated market power to easily take down what was the world’s largest company by market capitalization, i.e. Apple!
It’s a disgusting situation…
I was comparing Apple’s and H-P’s numbers YTD and it is just absolutely amazing how H-P’s share price has outperformed Apple’s share price over that period of time. H-P is just hanging on by a thread. It wouldn’t be surprised if Apple’s iPad line is making more money than all of H-P. There is just no good reason for Apple’s share price to be performing so poorly for all these months in 2013. No reason except for the hedge funds holding Apple’s share price within in a narrow range.
The reason is the motherfuchers want to buy Apple cheap and sell high .
Obviously, we’re living in a crazy world which running by the MOB!.
Stupid Hedge Funds Managers who have more power than smart, intelligent like Engineers who innovated technologies for the whole world to use.
Pablum disguised as insight.
Reimagining the portable music player or the portable phone is on a whole different level than imagining wearable computing, a concept that is only now being recognized and can possibly be assembled with available technology.
The fact that you have to wear your “google glass” points out the fallacy of that method of wearable computer. Apple would do well to avoid “gadgets”. Any futurist or analist (pun intended) worth their saltpeter would stay away from the gadget analogy.
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