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Old 12-07-2012, 11:11 AM
Griffoun Griffoun is offline
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Originally Posted by Griffoun View Post
A small factor was because analysts' expectation was too high to begin with, but even at $700 the P/E wasn't that ridiculous given its huge profit margin.

But given the market is forward-looking, I'd say the street wants new product category and innovation from Apple. Steve Jobs claimed to have cracked the code with the mess in home entertainment system + TV + cable boxes, but I don't see any rumors about it recently. And no, it's not just the current Apple TV.

Amazon's Kindle Fire kills many birds in one stone - NFLX, AAPL, BKS, and retailers like BBY, RSH. TGT and WMT are now officially fighting back. Apple's response to AMZN is iPad mini, to capitalize on the lower-end of the the tablet market. The side effect is negative impact on 10" iPad and lowering revenue.

Finally, Apple has hard time gaining market share in emerging markets which Android has dominating position and making HUGE progress. Just look at today's QCOM earning report how Apple's been missing out there. The only way Apple can do better, IMO, is to create a second tier product or push the older models (4, 4S) to those market, thus reducing profit margin. And that's partly why Apple took another hit today.

iPhone5 disappointment... maybe, but then people have been saying it after the 3GS and 4S launch. However look at Samsung, the 4.8" GS3 and 5.5" Note 2 are selling like hotcakes. If Apple doesn't address this problem, they'll have a hard time keeping up the current momentum. A redesigned iOS UI would help too.
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