“Investors don’t seem to fully appreciate Apple’s ability to scale up profits from services in coming years, according to Credit Suisse analyst Kulbinder Garcha, who added the stock to his firm’s Focus List last week,” Hough reports. “Apple sells apps, music, movies, warranties, online storage, and more. Many companies do, but Apple has an ecosystem advantage.”
“A customer who pays, say, $10 a month for a terabyte of online storage is paying top dollar for a commodity product. But with Apple, they can view photos and videos across their devices without clogging up their hard drives, and new iPhone photos are added automatically,” Hough reports. “Is it worth it? Perhaps only for those who value ease over savings, but iPhone users have household incomes 45% higher than those using Android-based devices, and they spend seven times as much on mobile commerce.”
Read more in the full article here.
MacDailyNews Take: We dream of the day where AAPL is even somewhat fairly valued.
Can you say “Trillion dollar market cap?” Ahh, dreams!