AAPL - Apple stock price drops again - now at 485

Apple has been successfully ripped off by all it's competitors and now smart consumer's can't justify it's price tag.
 
I dont mind the metro interface on my windows phone; all of my family members have iphones and they shit on my apple yet they have more problems with their phones than i do with mine.
 
Ford Motor shares were $1.50 four years ago... a dollar and 50 cents. Now at $14.
 
Last year, when Facebook went public, it seemed like AAPL was dropping because people were using it as a ATM to get cash to buy FB. There was also likely big selling to take advantage of the lower capital gains tax when people didn't know if it was going to be extended. The people who sold may not have immediately bought back mistakenly thinking the timeframe for wash sale losses applied to capital gains.

Recently, people were saying AAPL cut parts orders due to low iPhone demand, but I recall earlier when iPhone 5 came out, the manufacturers were complaining it was hard to assemble and meet quality control standards so they couldn't meet demand early on, which makes me think maybe the designers didn't design it to be easily assembled, they didn't test assemble it to identify the problems before going into full production, and maybe they knew there was going to be a lot of spoilage so maybe ordered way more parts than needed, so maybe reducing parts orders now doesn't mean low demand if they just got better at assembling it and have less parts spoilage.

They did get rid of some guys related to the maps fiasco, so hopefully the message was sent that they need to know what the F they are doing and not do sloppy work and make sure the underlings are trained and supervised properly and their work gets double checked. It's so easy for things to get screwed up.

I really hope the smart guys there rise up and make a big difference in the company's future. They've got to be able to think up good stuff and deliver what consumers want like the old days. They also need to be mindful not to build up their future competition like Samsung who made parts for them.
 
I'm thinking about starting a small position in aapl this morning. It feels like the analysts have been holding back and pretending like their rigorous and not idiots, but will cave in due to what the stock is saying and start downgrading en masse. That'll send the stock toward 400 and I'll buy more. No matter what it should be a good trade for earnings. It's clockwork, whenever google, amazon, apple, most of the techs get blasted on rumors before reporting their stock jumps. It's a week away though, can still drop forty more points.
 
There was probably also mutual funds selling AAPL because they might have internal policies not to have too much of one stock in the fund, so that probably also caused more sellers than buyers to drive the stock down.
 
GSP_37 said:
There was probably also mutual funds selling AAPL because they might have internal policies not to have too much of one stock in the fund, so that probably also caused more sellers than buyers to drive the stock down.
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:redface:
 
Groundswell said:
What for? What city? Think we have a tourney in Singapore in late Feb/early Mar.

I remember well. Just bustin'. Apple didn't need any cheerleaders once it got to about $55
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I'm there for work - unfortunately. I will be in Shanghai and at least a couple of other cities. I don't think I will visit Singapore this time. I'll PM you when I have my itinerary.
 
It has less to do with Apple doing poorly, but more of competition doing better and Apple's stock finally decreasing and heading to where it really should be. And no more job effect.
 
trends come & go. Apple will be back
 
If it gets down to $450 I will probably buy some.
 
Nice 20 dollar jump today. Will probably drop again later though.
 
Stock should drift higher to earnings next week. Makes for a nice trade.
 
bebop22k said:
trends come & go. Apple will be back
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Apple is a trend. What keeps Apple going is it's high profit margin. People are still content on over paying for Apple products for the brand name and Apple is successfully keeping it's part costs down by producing a single product line per market. (iPhone, iPad, iBook) The consequence being, Apple is putting all it's eggs in one basket. Each iteration of next generation iPhones, iPads, iBooks and etc are practically the same. Apple is no longer creating revolutionary products ever since iTunes came out. While successful now, it could quickly change if a competitor were to gain a differentiation advantage much like how Apple took over the mp3 player market.

Due to it's popularity, it unfortunately means the stock is over bought and prices are sky high. (4 to 1 price to book value) If anything were to happen to that profit margin for a quarter (new out sourcing laws, fashion trends, competition) you could see Apple stock drop 75%.
 
quatin said:
Apple is a trend. What keeps Apple going is it's high profit margin. People are still content on over paying for Apple products for the brand name and Apple is successfully keeping it's part costs down by producing a single product line per market. (iPhone, iPad, iBook) The consequence being, Apple is putting all it's eggs in one basket. Each iteration of next generation iPhones, iPads, iBooks and etc are practically the same. Apple is no longer creating revolutionary products ever since iTunes came out. While successful now, it could quickly change if a competitor were to gain a differentiation advantage much like how Apple took over the mp3 player market.

Due to it's popularity, it unfortunately means the stock is over bought and prices are sky high. (4 to 1 price to book value) If anything were to happen to that profit margin for a quarter (new out sourcing laws, fashion trends, competition) you could see Apple stock drop 75%.
Click to expand...

The profit margins are going to delcine and you are right that they aren't coming up with a new innovative device like an ipod or tablet that everyone has bought in the last 8 or so years that people didn't have before. The incremental changes aren't enough for people to buy a new one every year or maybe even every other year. Their big potential growth is in the emerging markets. Who gets a major segment of the market share in telephones sales in the emerging markets is going to be the big winner.

Still they do have an advantage that people like to have all their devices to be in the same ecosytem - computer, phone and tablet so they will likely see people stick with their products once they get them.
 
If I were going to design the next tablet, I would design it so that people can load itunes on it and then load stuff from their tablet to their ipod.

It doesn't make sense right now for people like me to travel with a tablet even though that would be much more convienent. I like to download podcasts and listen to them on my ipod. I cannot do that if I only have a tablet on a trip. I need my computer. If I am going to bring my computer it isn't worth bringing my tablet too.
 
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