“After years of consistently exceeding expectations, Apple has stumbled badly during its 2016 fiscal year,” Adam Levine-Weinberg writes for The Motley Fool. “Apple is under pressure on all fronts: the smartphone market is maturing, tablet and PC sales remain weak, and the strong dollar is crimping revenue abroad… However, the company’s longer-term prospects still seem much better than Mr. Market would have you think.”
“In contrast to analysts’ modest expectations for the iPhone 7, analysts are starting to predict a bigger, bolder upgrade for the following year,” Levine-Weinberg writes. “Longer-term, Apple could incorporate virtual reality technology into the iPhone. Longer-lasting batteries are another key improvement that many iPhone users are hoping for.
“In short, Apple should be able to come up with enough improvements to keep most iPhone users upgrading every 2-3 years (or annually, for the most rabid fans) for many years to come,” Levine-Weinberg writes. “This represents a massive recurring revenue stream that will grow as the iPhone user base expands. That’s reason enough for Apple investors to stick around — or even double down.”
Read more in the full article here.
MacDailyNews Take: Boy, we’d have loved to see AAPL touch the $80s. Mr. Market the over-reactor is losing his touch.