“Assuming that Apple doesn’t exceed its own guidance for the March quarter, the company will suffer a y/y revenue decline and probably a decline in iPhone sales as well,” Mark Hibben writes for SeekingAlpha. “Some have asserted that this represents ‘Peak iPhone’ and that iPhone sales will inevitably decline going forward.”
Hibben writes, “Such assertions ignore an important historical fact: the world has yet to see ‘Peak Mac.'”
“Except for the decline in 2013, annual Mac sales have been rising steadily since 2003. Fiscal 2015 represents an all-time high in Mac unit sales,” Hibben writes. “There have been several peaks in Mac sales that could have been declared “Peak Mac” with the same sense of finality that some are now declaring Peak iPhone.”
“Over the years, AAPL has been able to continue to innovate in the Mac OS X operating system, in hardware platforms, and in services such as the Mac App Store, iMessage, and FaceTime for the Mac,” Hibben writes. “Apple has been able to keep the platform fresh, and most importantly, keep it growing despite the competitive pressures of Microsoft and its hardware OEMs. Given that Apple has been able to achieve this with the Mac, how can anyone claim with certainty the iPhone is in permanent decline?”
“The next few months will probably wear on the nerves of Apple’s investors. Since the December-quarter earnings, the gloating of the Apple bears has been relentless, and it’s unlikely to let up anytime soon,” Hibben writes. “I wish it could be otherwise, but the next few months will definitely test the mettle of Apple investors. I remain long Apple and recommend it as a buy for those with long-term (3-5 year) investment horizons.”
Read more in the full article here.
MacDailyNews Take: Smart long-term investors can see the forest for the trees.
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