“It often seems that Apple investors are constantly looking to the horizon for new products, and Wall Street’s anticipation of new Apple products seems to have recently reached a fever pitch (yet again),” Bold Investor writes for Seeking Alpha. “Although Apple’s entry into new product categories is no doubt exciting for both consumers and investors, we must remember that a company’s less prominent segments are often just as central to its stability and growth as its more prominent ones.”
“I make the case that Apple’s iTunes, software, and services segment and its accessories and retail segment will grow over the next few years to become central pillars of the Apple financial edifice,” Bold Investor writes. “I fully expect iTunes to expand to become Apple’s second-largest segment, behind iPhone but dwarfing iPad and Mac. The accessories segment may well do the same in a few years, and has the potential for significant upside depending on the manner in which the growing accessories market develops.”
“As a consequence, I take the opinion that it is impossible to speak responsibly about Apple – especially Apple as a growth stock – without reference to iTunes and accessories,” Bold Investor writes. “Once we take the strength of these segments and their explosive growth into account, Apple could very well be a bargain even at currently all-time high prices – especially if Apple’s promised new product categories are successful.”
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