“The recent Apple earnings report reminds us there is a specific agenda in mind by investors and analysts who cater to investors. That is, gain smartphone unit share growth and dominance at any cost,” John Martellaro writes for TheStreet.
“The reasoning behind the agenda is as follows: If Apple can seize the upper hand against smartphone competitors by virtue of increasing unit share, then the competitors suffer and Apple dominates the market. That means that, unfettered by realistic competition, Apple can grow exponentially. That, in turn, means Apple becomes a growth stock, insofar as smartphone sales go, and that’s a significant portion of Apple’s revenue,” Martellaro writes. “A growth stock means that X dollars invested now will bring X + Y dollars at some short-term point down the road. In other words, Apple puts money in investor pockets. Any Apple strategy that doesn’t do that is disagreeable.”
Martellaro writes, “Some investors would rather ride the Apple stock for all its worth, cash in, watch Apple fail, then move on to the next growth opportunity. CEO Tim Cook, being a good steward, isn’t interested in that scenario.”
Read more in the full article here.
MacDailyNews Take: Those who underestimate Tim Cook’s Apple are in for a rude awakening and, newsflash, Apple sells premium products at premium prices to premium customers.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]